Well, just when we have been hearing so much about the economic recovery it seems that all is not well with GMAC. The economic turmoil that kept the financial system in chaos during 2009 created the “need” for GMAC to receive $12.5 Billion in government funds. These funds came in the form of direct aid from our government as well as other supports from the federal government that were not made so directly.
According to the Washington Post today GMAC has received another $3.8 Billion from the government. GMAC is the primary lender to General Motors and Chrysler most often financing the automobiles for those who purchase from the two companies.
With the newest infusion of funds we, the government, now holds a majority stake in GMAC. More stimulus for the big boys and no talk of the additional stimulus the President mentioned for those older and poorer citizens who did not receive a Congressional cost of living increase — although federal employees received a 2% pay raise.