Sweet Jeebus. Turns out two federal bailouts worth $12.5 billion, a $4.5 million gift from the state of North Carolina, $153,000 in cash from Mecklenburg County, and $84,000 in bribes from the city of Charlotte is not enough for Al “Il Duce” Molina. Nope.
This fascist shakedown artist wants another — wait, firm numbers are hard to come by for this bank — somewhere between $2.8 billion to $5.6 billion more from the federal government. This would be downright laughable except for the fact that anyone paying attention knew GMAC was not a going concern six months ago.
Chris Whalen and Institutional Risk Analytics saw it clearly back then, saw that GMAC could not function without continued subsidy. Here is what Whalen says today:
In relative terms, GMAC has received far more subsidies than any other zombie and seemingly has no access to the private markets in terms of raising new equity. Of the 19 banks subject to the Fed’s stress tests earlier this year, GMAC is the only bank that has not raised the required private capital.
Looking at the latest 10-Q from GMAC filed with the SEC, the only question we have is why isn’t GMAC already in bankruptcy? In Q2 2009, GMAC reported a net loss of $3.9 billion on $3.6 billion in net revenue. …The Democrats know that if GMAC is forced into bankruptcy, then GM will be unable to finance their paltry auto sales and will likewise end up back in bankruptcy. In the event, the web of subsidies and co-dependency between the UAW and the Democratic Party will begin its final collapse. We can’t wait.
And you can bet the Uptown crowd will stand up and cheer GMAC bailout #6 just as they did for bailouts 3, 4, and 5. Why change when the credit keeps coming?
Because our quality of life as a nation, state, city, and community is at stake. We simply cannot continue to reward failure. We cannot debase our currency — invent something called “credit” and hand it out by fiat — and pretend the real world and real economy does not notice. We are maybe 12 or 18 months away from turning into Argentina.
Where is FZ when we need him?
