GMAC “bailout” Insanity 3x

Insanity is doing the same thing over and over, but expecting a different result each time.

This is STILL occurring with GMAC.

Here are the dates and amount of funny money the US Treasury department gave GMAC.

December 29, 2008 - $5 Billion

May 21, 2009 - $7.5 Billion

December 30, 2009 - $3.8 Billion

That is $16.3 Billion dollars, not million, billion!

I think they should offer free tickets to the GMAC bowl tomorrow since we will be paying for these bailouts since we do not have any money saved. We will be paying via taxes or inflation.

http://money.cnn.com/2009/12/30/news/companies/gmac_bailout/index.htm - "The Treasury said it will inject $3.8 billion of new capital into GMAC rather than the previously announced $5.6 billion, because GMAC's needs are now less than originally expected, in part because the impact from the bankruptcies of General Motors (GM, Fortune 500) and Chrysler were not as harsh as regulators predicted."

Did they write that to manage expectations? Why not say they originally expected GMAC needed $1.5, but $3.8 was needed? It seems since the March low, the "tape" has been swing in any possible fashion to the positive side. I understand that it is human nature to remain optimistic, but why can't anyone stand-up and say enough is enough and that this company is in the crapper and has failed 3 times! After reading the article you feel that this is not terrible news, but in reality it is not. Again, there are other profitable business looking to grow, but the resources are still stuck in a money rat hole of GMAC. This is setting a bad precedence to large companies that you will be backstopped with money in case you are ready to fail.