GMAC Plan Is Bad - Blodget's Alternative

You remember GMAC. Bored by the mundane world of vehicle financing, they plunged into mortgage originations only to get stomped. They've already received $12.5 billion via TARP since December 2008 (because TARP was designed to help auto loans, remember?...or was it the toxic muffler market?), and now Tim Geithner is preparing to offload another $5 billion to the strategically important entity.

Are you kidding me? We can't get $1 billion for updates to air-traffic control infrastructure that relies on 1950s technology, but we got $18 billion for GMAC.

That's $18 billion of borrowed bamboozle straight into the sh*tter, and the toilet won't flush.

Don't miss this one. Blodget offers an alternative GMAC rescue plan.

Video (4:52): Henry Blodget Talks GMAC, Tim Geithner & AIG Payouts At Par

Blodget's AIG-Geithner rail is the best part and begins at the 3 mark.

Comments

[bbro:]

Blodgett....

In 2003, he was charged with civil securities fraud by the U.S. Securities and Exchange Commission He settled without admitting or denying the allegations and was subsequently barred from the securities industry for life. He paid a $2 million fine and $2 million disgorgement.

Oct 29 02:29 PM

[jacflash:]

...and then after a couple of years of being a stay-at-home dad, he put on the big-boy pants, owned up to all of it without making excuses in one of the best pieces of writing to ever appear on Slate.com, and has since done a pretty good job of reinventing himself as a savvy, knowledgeable market pundit. He's a smart dude and this is worth a listen.

Oct 29 03:05 PM

[Brad Johnson:]

Nothing can be done to stop these deals as long as there is a one party rule in Washington.

Oct 29 04:10 PM

[countrybanker:]

hey bbro, tell us what is inaccurate about his position and the facts he states.What, he is correct? Thats why you trashed the messenger...cause the message was true!!


On Oct 29 02:29 PM bbro wrote:

> Blodgett....
>
> In 2003, he was charged with civil securities fraud by the U.S. Securities
> and Exchange Commission He settled without admitting or denying the
> allegations and was subsequently barred from the securities industry
> for life. He paid a $2 million fine and $2 million disgorgement.

Oct 29 09:45 PM

[bbro:]

He has been incredibly inaccurate over the last year....he was
peddling snakeoil back then and he is peddling it today....


On Oct 29 09:45 PM countrybanker wrote:

> hey bbro, tell us what is inaccurate about his position and the facts
> he states.What, he is correct? Thats why you trashed the messenger...cause
> the message was true!!

Oct 30 06:22 AM

[Living4Divi...:]

So far, the US Govt has bailed out Detroit massively:
1. GMAC with 12.5B via TARP
2. The GM bailout #1
3. Cash-For-Clunkers

The American consumer is encouraged to buy a shiny new car while she/he is seeing his net worth plummet. Many homeowners are strapped and in danger of losing their houses.

According to the government, cars are more important than houses. When the banks foreclose on the houses, the people can sleep in their shiny brand new cars.

When will the madness of Detroit bailouts stop?

Oct 30 10:58 AM