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Archive for the ‘GMAC’ Category

Shrub Cost Taxpayers Over $200,000 to be Relocated

Posted by Steve Markowitz on April 14, 2012

CNSNews.com reported that the taxpayers paid over $200,000 to relocate one plant (Shovel Ready in San Fran: $205,075 to ‘Translocate’ One Shrub from Path of Stimulus Project).  It seems that some governmental bureaucrat discovered a Franciscan manzanita bush in San Francisco that was in the way of a highway project.  While commercially grown manzanita are sold in California for less than $20 per plant, some biologist determined that this might be a native plant so the bureaucrats when to work spending the people’s money.

According to the report, the government spent $100,000 for the plant’s removal, $80,000 to nurture and monitored the plant for the next decade, and about $25,000 for governmental “reporting requirements”.  This particular example of governmental waste was the result of President Obama’s $800 billion plus Stimulus Package.  Assuming the Bush deserved moving, had the government not been involved in the task probably could have been accomplished for about 1/100 the cost.

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Posted in GMAC, Government Waste | Tagged: , , , , , | 1 Comment »

GM to Purchase Credit Company

Posted by Steve Markowitz on July 26, 2010

General Motors was a basket case ready to close down when the Obama Administration decided it worthy of a taxpayer bailout.  About $60 billion later and the American taxpayers now own 61% of GM.

There are many reasons for the once great General to have fallen so far.  They built cars buyers did not want, had poor quality and management, and a labor union more concerned about monthly dues than the viability of General Motors and its workers.  But there was anothercause for GM’s meltdown; over reliance on leases and loan incentives to sell cars through its finance arm, GMAC.  While GM divested of GMAC in 2006, this division was in such poor shape that taxpayers had to also bail it out in 2008 to the tune of another $17 billion.

Unfortunately, neither GM nor its government owners learned from its previous meltdown.  The Wall Street Journal reported that General Motors will acquire AmeriCredit for $3.5 billion.  Adding insult to injury, AmeriCredit is the largest provider of car loans to buyers with low credit scoresGM announced that their strategy is to win over more car buyers by increasing vehicle leases and loans.

Credit and excessive debt are at the heart of the economic mess we continue to be mired in.  Car companies need to return to a mentality that vehicles sell because of their quality and other product attributes.  If GM had confidence in the superiority of their vehicles this use of $3.5 billion of taxpayers’ funds to purchase a credit arm would not be required.

Posted in Bailouts, Debt, General Motors, GMAC | Tagged: , , , , , , , | Leave a Comment »

Government Bailouts; The Gift that Keeps on Taking

Posted by Steve Markowitz on October 28, 2009

GMAC_logoThe government bailouts and handouts keep on coming with no end in sight.  Today the Wall Street Journal reported that GMAC Financial Services and the Treasury Department are negotiating for a further cash infusion into GMAC of between $2.8 billion and $5.6 billion.  This is on top of the over $12 billion GMAC received less than year ago. Read the rest of this entry »

Posted in Bailouts, GMAC | Tagged: , , , , , | Leave a Comment »