Treasury's Geithner: U.S. to give GMAC substantial aid Fri May 8, 2009 12:49pm EDT http://www.reuters.com/article/newsOne/idUSTRE54749X20090508 WASHINGTON (Reuters) - U.S. Treasury Secretary Timothy Geithner said on Friday that the Obama administration will provide "substantial support" to troubled financial firm GMAC in the form of more capital. "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 take a turn for the worse. (Reporting by David Lawder, Glenn Somerville and Karey Wutkowski; writing by Glenn Somerville)
The government is convinced that the real estate crash broke down our financial system. The CEOs of the banks that need the most money also think so. They all naively believe that pouring money into banks is going to fix everything. There are more problems ahead for all of us because we have learned nothing from this crisis.
Naively? They are getting trillions of dollars of taxpayer money against the will of the people, yet you think they are naive. In case, you have not figured it out, they are not trying to fix anything.
My "naive" comment was intended mostly for the government. Of course I realize that the banks will say anything to not be blamed for the crisis and especially to get money on the cheap. I guess I just want to believe that someone outthere will at least try to make changes to the system so that this does not happen again.
If you understood how contrived Bank losses were, and the Governments unwillingness to regulate any of it, you wouldn't be so quick to herald a new bull market. The Banks have controlled this entire recession - from crash to recovery - via Government intervention on their say so. They could easily tank the market next week if they sought fit to cull the Treasury for another few Trillion. Fundamentals mean nothing, at this point. It all hinges on the whims of Banking Juggernauts who took America for 13 Trillion, and counting.
Good point, it is all about control, and the banks have an iron grip on it. Americans are pathetic to let this happen to their country. But we can all share some of the blame.
i just understand one thing..if you go to bankrate GMAC rating is good- http://www.bankrate.com/funnel/cd-i...ent-results.aspx?local=false&tab=CDs&prods=15 (use to be 4 stars like couple weeks ago).on local news -they said couple days ago that they hiring people..like few hundreds..and yet need money for life support?..smells like bs..from rating agencies and gmac and gov..