The Treasury Helps GM Slap Ford (AND US) In The Face: UPDATED

UPDATE: The Today’s Are You Freakin’ Kidding Me Award WAS going to go to the Federal Commission that thinks raising the gas tax on Americans by 10 cents per gallon is a really good idea, but it has been pre-empted by GMAC!!! (IMAGINE THAT!!!!)

GMAC is sponsoring the GMACBOWL using our tax dollars and even worse:

GMAC FInancial Services and Team focus partner to coach children on money management (BWAAAAAHHHHHHHHHH!!!!!!!!!!!!!!!!!)

DETROIT (June 16, 2008) – GMAC Financial Services today announced that it will partner with Team Focus to give boys and girls the smart edge when it comes to money management. Team Focus, a community outreach program that provides inspirational, community, social and academic guidance to children without father figures, will have a GMAC SmartEdge financial literacy education session at its 2008 Camp Focus.

Team Focus has been affiliated with the GMAC Bowl and “is excited to bring our association with GMAC to a higher level through the addition of the GMAC SmartEdge financial education session at Camp Focus,” said Mike Gottfried, CEO and founder of Team Focus. “SmartEdge will provide us with another way to positively influence the lives of the children that come to camp.”

GMAC is committed to providing financial literacy opportunities through its GMAC SmartEdge program. “It is important to mentor youth and help children prepare for their future,” said Sharon Sayles Belton, director of community relations at GMAC. “Now more than ever, young adults need to understand money management so they are ready to make smart financial decisions when they enter adulthood.” (This coming from the morons that drove their company into the ground and now has to have us bailing them out?)

“It’s never too early to start learning appropriate money management skills,” adds Don Ferguson, director of GMAC SmartEdge. “The SmartEdge education sessions are designed to engage young people to make better financial decisions, plan their spending habits and save for their future.” (And in the words of Dennis Hopper, “Nothing Like A Smoke When You Miss Your Mom and You Are Never Too Young Too Start”.)

Camp Focus will have its first leadership camp of the year in Mobile, Ala., with 10 other camps throughout Alabama, California, Nevada, Ohio, Tennessee and Washington, D.C., with approximately 75-80 children at each camp. This year Team Focus is expanding its program by having its first girls’ camp.

GMAC SmartEdge hosts financial literacy seminars around the country and provides money management tutorials and tips on its Web site, http://www.smartedgebygmac.com, which is designed to educate consumers in the areas of credit, budget, vehicle and home financing, banking, and insurance.

********

I am currently hard at work on the third article in the Economic Collapse series but I just could not let this perfect example of government screwing private companies over go by because it makes me growl, and with my expanded education about the US Treasury, The Federal Reserve and Hank Paulson, events are getting curiouser and curiouser…

Treasury To Ford: Drop Dead

The GMAC rescue plays favorites.

When the Bush Treasury decided to bail out Detroit, GM and Chrysler quickly said yes to the taxpayer cash, but Ford Motor Co. said it didn’t need the money and declined. Ford’s reward for this show of self-reliance? Treasury is now helping GM again by giving it a credit pricing advantage against Ford in the marketplace.

That’s one little-noted result of Treasury’s action earlier this week to rescue GMAC, the GM credit arm that, as it happens, is 51% owned by the Cerberus private-equity shop that also owns Chrysler. With $5 billion in taxpayer cash in its pocket, GMAC quickly decided to offer 0% financing on several of its models. “I think it would be fair to say that without this change . . . we would not be able to do this today,” explained GM Vice President Mark LaNeve in a conference call with reporters this week.

The messy little policy issue is that these GM products compete with those sold by Ford, Toyota, Honda and numerous other car makers that won’t benefit from GMAC’s cash infusion. And with the cost of financing often crucial to buyer decisions, the feds have now put the muscle of the state behind one company’s products.

Ford in particular must wonder what it did to deserve this slap. CEO Alan Mulally joined the GM and Chrysler chiefs in testifying for the bailout even while insisting his company didn’t want the funds. And once the bailout was announced, Mr. Mulally said that “All of us at Ford appreciate the prudent step the Administration has taken to address the near-term liquidity issues of GM and Chrysler.” So much for gratitude.

….

This is always what happens when politicians decide to muck around in private industry. Even when made with the best intentions, their policy decisions have unintended consequences that help some companies at the expense of others. Meanwhile, your neighbor who buys a GM SUV this weekend with 0% financing should thank you when he pulls into the driveway. He did it with your money.

Would you agree with me that Hank Paulson needs to be fired for following what appears to be an agenda that is in exact opposition to the will and benefit of the American People?

<a href =”http://answers.polldaddy.com/poll/1239464/” >Should Henry Paulson be fired as Secretary of The Treasury?</a> <br/> <span style=”font-size:9px;” mce_style=”font-size:9px;”> (<a href =”http://www.polldaddy.com”> surveys</a>)</span>

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Comments
7 Responses to “The Treasury Helps GM Slap Ford (AND US) In The Face: UPDATED”
  1. navyvet48 says:

    Thank you once again for highlighting the problem with the bailout money. The bailout money appears to be going to the friends of Hank Paulson. Or is it my imagination?

  2. Well, for whatever relevance it might have, I saw GMAC advertising last night on the T.V. It just kind of startled me, because of the infusion they were just given, and I don’t recall seeing them advertise before.

    Good work on everything you are bringing to our attention.

  3. Mary Ellen says:

    I haven’t read all the details of the bailout, I was missing a lot of news for awhile. If I recall, however, wasn’t the deal that GMAC would have to pay back the government when it starts bringing in the profits? If that was the case, I imagine the government will continue to do all it can to build up those companies and if it means taking down Ford to do it, they will. That’s why government should not be taking over private companies. Our taxpayer money is being used to support a business that we may or may not like. For instance, my brother-in-law was a factory worker for Ford. Even though he was retired, he was still receiving his pension from them. His tax money was going to help GMAC which is doing all it can to take down Ford. Therefore, he is forced to pay money out of his pocket which could eventually be the reason for the demise of the company where his only source of income is coming from.

    I’m not sure if my comment makes sense, but there is no doubt in my mind that this bailout is the final nail in the coffin of our dying economy.

  4. Diamond Tiger says:

    You are exactly right Mary Ellen!

    I personally cannot stand GM or GMAC and they are they reason I will NEVER own another American Made car again. I stopped buying their vehicles to send them the Free Market wake up call and now our government is using my money to keep them alive. The door to the Twilight Zone has definitely opened in DC.

    Everyday has been a You Have To Be Freakin’ Kidding Me! moment; one right after the other with what our government is doing with our “money”.

  5. cats says:

    After listening to the tapes of Griffin explaining about the Fed’l Bank, I’ve begun having nightmares about the future of this country – and I haven’t even been sleeping while I have them. This is just one more “wake me up” please moment. Thank you-really-for putting it all in perspective for me.

  6. Diamond Tiger says:

    Thanks for the Kudos Cats and you are very welcome – we just need to tell as many Americans as will listen in a very calm way that the Federal Reserve is NOT a government agency; rather privately held and that they have been scamming us for years. The more Americans know about this the faster the change will happen – because we all know that the fastest way to change someone’s mind is attached to their checkbook. Why else would the issue of TAXES be such a biggie with politicians.

    I see the Federal Reserve and the NY banks as the root of all the problems in this country because it all revolves around the thing that corrupts most and fastest – money.

  7. What I recommend for anyone who has and is having their mind blown, is to join meetup groups in their area. Meetup groups are everywhere. I have just joined one closer (Sacramento) to where I live. If we are going to take back our country, we have to go from the internet to earth; that is how we can start our revolution. I for one, believe in Ron Paul, as he is a true patriot who is not afraid to speak out. I just pray to God that he remains safe.

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