Did You Vote on GM Purchase of AmeriCredit?

July/25/2010 16:32PM
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As a taxpayer you own part of GM. You own your share of the $45 billion you helped give GM to bail them out. They have $30 billion in cash. Until they go public, you will continue to own part of GM.

Did the Financial Reform Act give you the option to vote on big transactions GM makes? Of course not.

GM announced they will spend $3.5 billion of your tax dollars to buy Americredit, a company that makes loans to sub prime buyers. Here we go again. The government had to bail out GMAC, the former financial arm of GM because they made bad loans, not only to car buyers, but to home buyers. Now GM plans to make leases and loans to sub prime car buyers. They won’t be allowed to make mortgages, but don’t despair, the FHA, which you also own, is doing that at a stepped up pace. The FHA has replaced Freddie and Fannie, which you also own, as the company that learned least from the housing meltdown.

Your car company is going to sell cars to people who can’t get loans elsewhere with this great new acquisition.

You and I can write the future outcome of this today. We know GM will be drowning in bad paper in no time. Just as it was an entitlement for every American to own a nice house, it is still an entitlement by your government for every American to own a Cadillac.

The government mortgage bailout, the deal where you help your neighbor who can’t pay the mortgage, pay the mortgage, isn’t working. The few who qualify are mostly behind on their refinanced mortgage.

We have a government that is out of control. The government that can’t run anything, is running GM. That government will repeat the mistakes of the past. That government voted for you and your tax dollars and approved the GM acquisition. Now, you have to vote that government out of office and replace them with rational people who will not let GM orbit out of control and maybe, just maybe, help you get some of your money back from the GM bailout.

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