Comments on: GMAC: A Mini-AIG in the Making? http://www.nakedcapitalism.com/2008/12/gmac-mini-aig-in-making.html Mon, 23 Nov 2009 06:07:28 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Kid Dynamite http://www.nakedcapitalism.com/2008/12/gmac-mini-aig-in-making.html#comment-30850 Kid Dynamite Wed, 31 Dec 2008 17:51:00 +0000 http://www.nakedcapitalism.com/2008/12/gmac-a-mini-aig-in-the-making/#comment-30850 GMAC pays the government 8% on the preferred, loans the money out at zero, and to top it all off, GM loses money on every car sale...<br/><br/>doesn't sound like a viable formula to me.<br/><br/>i wrote a blog post about this too... and i agree with Denninger on this 100% GMAC pays the government 8% on the preferred, loans the money out at zero, and to top it all off, GM loses money on every car sale…

doesn’t sound like a viable formula to me.

i wrote a blog post about this too… and i agree with Denninger on this 100%

]]> By: Anonymous http://www.nakedcapitalism.com/2008/12/gmac-mini-aig-in-making.html#comment-30844 Anonymous Wed, 31 Dec 2008 16:41:00 +0000 http://www.nakedcapitalism.com/2008/12/gmac-a-mini-aig-in-the-making/#comment-30844 <i>I have been reading about all the acreage being leased at Long Beach ports by Toyota because they can't ship cars to dealers.</i><br/><br/>Toyota should be leasing space on lawns of underwater homeowners. <br/><br/>Problem solved. I have been reading about all the acreage being leased at Long Beach ports by Toyota because they can’t ship cars to dealers.

Toyota should be leasing space on lawns of underwater homeowners.

Problem solved.

]]> By: netzer http://www.nakedcapitalism.com/2008/12/gmac-mini-aig-in-making.html#comment-30830 netzer Wed, 31 Dec 2008 14:19:00 +0000 http://www.nakedcapitalism.com/2008/12/gmac-a-mini-aig-in-the-making/#comment-30830 It is only appropriate that GMAC turns out to be another AIG. In fact it should not surprise anyone that much of the economic might of US is a mirage and much of it would need to be eventually shut down or bailed out at tax payers' expense although I suspect before long, the US government would itself need to be bailed out via a default of US treasuries. Albert Edwards of Dresdner (and now of Socgen) pointed out earlier this year, that much of US economic profits had been nothing but lies and accounting tricks, aided by shameless devaluation of the USD in recent years. Eventually this whole crisis would end with a massive default of US treasuries. I am watching in great anticipation of that day when the US becomes formally a banana republic. It is only appropriate that GMAC turns out to be another AIG. In fact it should not surprise anyone that much of the economic might of US is a mirage and much of it would need to be eventually shut down or bailed out at tax payers’ expense although I suspect before long, the US government would itself need to be bailed out via a default of US treasuries. Albert Edwards of Dresdner (and now of Socgen) pointed out earlier this year, that much of US economic profits had been nothing but lies and accounting tricks, aided by shameless devaluation of the USD in recent years. Eventually this whole crisis would end with a massive default of US treasuries. I am watching in great anticipation of that day when the US becomes formally a banana republic.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/12/gmac-mini-aig-in-making.html#comment-30820 Anonymous Wed, 31 Dec 2008 12:44:00 +0000 http://www.nakedcapitalism.com/2008/12/gmac-a-mini-aig-in-the-making/#comment-30820 I cannot help thinking that this might be a nice little bailout for Ireland. GMAC and its brethren subsidiaries run through Ireland did a nice little business in car loans across Europe, using rates and techniques which squeezed out a lot of the more traditional lenders. Subsequently much of this risky lending has started to make significant losses. How fortunate then for us in Europe that GMAC has decided to restart making risky loans. It means our banks will not have to and we can all go on a big spending spree at the US tax payers expense. Now if only we could cut out the middle people and you Americans could just send half your wages to a European directly things would be a lot better for us. Joking aside it seems to me that most consumers are trying to work out how best to game these bailouts so that they can get as much as they can out of the system before everything crashes. I cannot help thinking that this might be a nice little bailout for Ireland. GMAC and its brethren subsidiaries run through Ireland did a nice little business in car loans across Europe, using rates and techniques which squeezed out a lot of the more traditional lenders. Subsequently much of this risky lending has started to make significant losses. How fortunate then for us in Europe that GMAC has decided to restart making risky loans. It means our banks will not have to and we can all go on a big spending spree at the US tax payers expense. Now if only we could cut out the middle people and you Americans could just send half your wages to a European directly things would be a lot better for us. Joking aside it seems to me that most consumers are trying to work out how best to game these bailouts so that they can get as much as they can out of the system before everything crashes.

]]> By: fresno dan http://www.nakedcapitalism.com/2008/12/gmac-mini-aig-in-making.html#comment-30816 fresno dan Wed, 31 Dec 2008 11:01:00 +0000 http://www.nakedcapitalism.com/2008/12/gmac-a-mini-aig-in-the-making/#comment-30816 BTW, a more serious comment. When I read the article and the other background articles (Thanks!!!) another important point missed is that it puts the government in the position of not enforcing the rules and regulations consistently, impartially, and objectively. Capital requirements except if we (the treasury) are helping you out (wink, wink). Kind of reminds me of 4 legs good, two legs bad. BTW, a more serious comment. When I read the article and the other background articles (Thanks!!!) another important point missed is that it puts the government in the position of not enforcing the rules and regulations consistently, impartially, and objectively. Capital requirements except if we (the treasury) are helping you out (wink, wink). Kind of reminds me of 4 legs good, two legs bad.

]]> By: fresno dan http://www.nakedcapitalism.com/2008/12/gmac-mini-aig-in-making.html#comment-30814 fresno dan Wed, 31 Dec 2008 10:44:00 +0000 http://www.nakedcapitalism.com/2008/12/gmac-a-mini-aig-in-the-making/#comment-30814 Agree with "Ruetheday"<br/>I have been reading about all the acreage being leased at Long Beach ports by Toyota because they can't ship cars to dealers. Now, if Toyota can't sell cars, what chance does GM have! Who is going to buy all those Pontiac G-6's? <br/>Hmmmm.... I have an idea. GM will get backing to buy land to store all the cars it can't sell (even with 0% and cash back...lots and lots of cash back. We will actually give more cash back, distributed by helicopters, that will equal the price of the car). <br/>Supports real estate and automakers. Man, I should be predident. Agree with “Ruetheday”
I have been reading about all the acreage being leased at Long Beach ports by Toyota because they can’t ship cars to dealers. Now, if Toyota can’t sell cars, what chance does GM have! Who is going to buy all those Pontiac G-6’s?
Hmmmm…. I have an idea. GM will get backing to buy land to store all the cars it can’t sell (even with 0% and cash back…lots and lots of cash back. We will actually give more cash back, distributed by helicopters, that will equal the price of the car).
Supports real estate and automakers. Man, I should be predident.

]]> By: macndub http://www.nakedcapitalism.com/2008/12/gmac-mini-aig-in-making.html#comment-30796 macndub Wed, 31 Dec 2008 03:43:00 +0000 http://www.nakedcapitalism.com/2008/12/gmac-a-mini-aig-in-the-making/#comment-30796 Could a mini-AIG be a unit of currency, defined as all the money in the world prior to September 2008, but only a few bucks after that date? Could a mini-AIG be a unit of currency, defined as all the money in the world prior to September 2008, but only a few bucks after that date?

]]> By: Anonymous http://www.nakedcapitalism.com/2008/12/gmac-mini-aig-in-making.html#comment-30795 Anonymous Wed, 31 Dec 2008 03:01:00 +0000 http://www.nakedcapitalism.com/2008/12/gmac-a-mini-aig-in-the-making/#comment-30795 The big three in Detroit are not national security assets at all. That's some politicians' inaccurate arguments. In times of necessity (war), other, so-called foreign automobile manufacturers can be nationalized with the same effort as the big 3's factories. There is absolutely no reason why billions have to be wasted and borrowed from the future of this nation in order to continue to sustain failing industries. The big three in Detroit are not national security assets at all. That’s some politicians’ inaccurate arguments. In times of necessity (war), other, so-called foreign automobile manufacturers can be nationalized with the same effort as the big 3’s factories. There is absolutely no reason why billions have to be wasted and borrowed from the future of this nation in order to continue to sustain failing industries.

]]> By: GloomBoom http://www.nakedcapitalism.com/2008/12/gmac-mini-aig-in-making.html#comment-30794 GloomBoom Wed, 31 Dec 2008 02:35:00 +0000 http://www.nakedcapitalism.com/2008/12/gmac-a-mini-aig-in-the-making/#comment-30794 GM is toast. Has been toast for years. The problem is that now they have enough money to survive until Obama is in. Then, with his ties to the unions, GM won't have to worry. Obama will open the floodgates. Sad really. GM is toast. Has been toast for years. The problem is that now they have enough money to survive until Obama is in. Then, with his ties to the unions, GM won’t have to worry. Obama will open the floodgates. Sad really.

]]> By: masaccio http://www.nakedcapitalism.com/2008/12/gmac-mini-aig-in-making.html#comment-30792 masaccio Wed, 31 Dec 2008 02:21:00 +0000 http://www.nakedcapitalism.com/2008/12/gmac-a-mini-aig-in-the-making/#comment-30792 GM hasn't announced the results of the exchange. My guess is that Pimco would only do the exchange if GM and Cerebus put in more equity. GM got the money it needed from Treasury and Cerebus came out of pocket. There is now enough equity to satisfy Pimco, which made some kind of conditional tender. GM hasn’t announced the results of the exchange. My guess is that Pimco would only do the exchange if GM and Cerebus put in more equity. GM got the money it needed from Treasury and Cerebus came out of pocket. There is now enough equity to satisfy Pimco, which made some kind of conditional tender.

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