Diary

The Obama takeover of GMAC is working out pretty well ... NOT!

Let’s see if I can follow this story. Please fill in any holes or correct anything I’ve got wrong.
– GMAC got into trouble by writing loans for houses instead of just for vehicles.
– Treasury certified GMAC as a bank holding company so they could pour in $12.5B of bailout funds.
– Obama told Chrysler Financial to plan an eventual shutdown so GMAC could take over future Chrysler loans.
– Obama shut down loads of GM and Chrysler dealers (possibly for arbitrary political reasons).
– Remaining dealers had to make major changes to continue in business.
– GMAC says it needs Chrysler dealers to pony up some major moolah, because it needs to stock up on its reserves now that it’s a bank holding company.
– Dealers say screw you GMAC, we already paid once plus we had major cutover costs.
– Chrysler Financial says screw you GMAC, we’re keeping first liens that we have now.
– GMAC says screw you taxpayers, we need billions more in bailout cash.

Gee, nobody could have predicted any of this, right?