It looks like the week of bodies floating to the surface and drifting into the harbor. GMAC is only the latest. This is also only the beginning. Should GMAC become the government’s plaything, with the goal of returning lending to the state it was, will we just see an extended bubble? Before long every element of lending will be in centralized hands. America! Fuck yeah!
U.S. Treasury Secretary Timothy Geithner said on Friday that the Obama administration will provide “substantial support” to troubled lender GMAC, a vital provider of financing for the domestic auto industry.
“We’re going to provide substantial support to GMAC,” Geithner said in an interview with Reuters Television. “It’s likely, again, that GMAC will need to take additional capital from the government and we’ll be prepared to provide that.”
The Treasury and U.S. banking regulators said on Thursday that GMAC needs to raise $11.5 billion to fill a capital hole it could face if the economy were to deteriorate further.
Shouldn’t the letters on the building in the pic read: “GMAC RIP”?
GWHIZZZZZ.
To #3 – Actually, they will. GMAC is taking over Chrysler lending.
No need to get excited, it’s just a short-term bridge …
@5
Let me finish the sentence
… to a long term majority stake.
Good thing that those stress tests considered an adverse and unlikely scenario…
Stress Tests = Cliff’s Notes for banks.
How to fix your books to pass the exam!
Ah….does this mean that FAZ will go up? I hope so. I put my entire egg into it last two weeks ago at $8.65
TOGFD
I really can’t wait to get my hands on some sweet, sweet 120% LTV, 5-year IO no-doc jumbo mortgage.
Suck it EP, that Richard Meier Penthouse is totally mine!
TOGFD@#9…
TGFD laughed so hard at that one, it made my abs hurt.
The Guy from Delaware