GMAC Files To Become Bank Holding Company

Economic bail-out planImage by afagen via FlickrThe Fed Will Say Probably Say A-OK

This is a super short post folks. I just wanted to remind everybody that in 2006, the peak year for Subprime Derivatives, GMAC was among the top 6 companies producing these toxic securities. Of those 6 companies, only 2 are still in business: GMAC and Goldman Sachs. All the others have failed. If the request is denied, GMAC will certainly join the deadpool (which is definitely where they belong). Golman Sachs, you will recall, is where we got Hank Paulson and Neil Kashkari, among others.

GMAC is one of the biggest reasons that Detroit is in such lousy fiscal shape. My opinion is that they should NOT be allowed to become a bank holding company. Becoming a bank holding company will allow them to borrow money directly from the Fed. That way, they will get their bailout, one way or the other, at OUR EXPENSE. Remember, money borrowed from the Fed is generated through our taxes.

Nevertheless, the Fed will probably allow their request to be approved. More ripoffs of the US taxpayer, brought to you by our friends at the Fed and the US Treasury. Why are we allowing the people who created this mess to control how we respond to it? Why are we just rolling over for the rich?

I am Jon, and I am really getting tired of bailing out the fat-cats.

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