http://www.chron.com/disp/story.mpl/business/6791332.html
So why is GMAC getting any federal assistance? If they were only a small mortgage lender (like they are) they would have been allowed to go into bankruptcy long ago.
But our federal government has already invested heavily in General Motors. And once you are in for a penny you are “all in” from a government perspective. Once you are an anointed class the subsidies just keep on coming. We would never want to upset a Democratic constituency in Michigan would we?
Why is GM making home loans in the first place? Because they were more heavily subsidized than the auto loan business.
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