Obama Motors aka Government Motors aka General Motors, is spending $3.5 billion dollars of our money buying a sub-prime lending company. ( Just to remind some of the liberals, sub-prime is that thing that Obama is accusing Bush of having done to undermine the economy. ) Government Motors claims that they need this company in order to finance the market segment which cannot otherwise qualify for credit. GM also tells us that the leasing business requires that they own a finance firm. Well fine then why not buy a legitimate company why spend more of our money on a firm specializing in sub-prime loans?
Didn’t GM have a sub-prinme financial arm already called GMAC? Of course it did. GMAC , which recently changed their name to Ally Financial, did so well financing subprime loans that we had to give them $17 billion to prevent them from bankruptcy! The governemnt now owns 56% of the company’s stock and over $10 billion dollars of preferred stock .
We gave GMAC $17 billion dollars and we are to understand that they are still not able to function as a financing company? If that’s the case WHY DIDN’T WE LET THEM GO BANKRUPT and what the hell was our money spent on? WHY IS A FIRM WORTH ONLY $3.1 BILLION ABLE TO DO WHAT A COMPANY FOR WHICH WE PAID OVER $17 BILLION CANNOT DO?
Further more why is the government encouraging and investing in sub-prime loans? Isn’t Obama , during his perpetual campaing stump, accusing George W Bush and the republicans of creating the recession trough “failed policies?” What practice other than sub-prime loans was more directly responsible for the creation and subsequent collapse of the housing bubble and then the entire economy? I suppose it’s OK for Obama to spend our money doing the same thing that he accuses the republicans of doing because… la di da.
There are many reasons why Obama and Government Motors is buying Ameri Credit , foremost among them is that they are not paying a penny for it, you and I are. Another reason that Obama Motors is once again plunging neck deep with our $3 billion into the quagmire is that minorities are the prime beneficiaries of sub-prime loans. The source link will take your to a little jewel published by USA today back in 2005- it was OK to publish the truth back then because we were not in the post-racial America, but I strongly suggest that you download the article because I don’t think it will stay up for long.
Here is an excerpt “- loans were more prevalent among blacks in 98.5% of the metropolitan areas, while Hispanics were more apt to hold a sub-prime mortgage or refinance loan in nearly 89.1%, according to the National Community Reinvestment Coalition (NCRC), a non-profit focused on lending and community- development issues.” Source
It is interesting to note that the wide spread use of subprime loans did in fact originate in the shady used car lots that ring the outskirts of ghetto neighborhoods and only about ten or so years later was it ‘discovered” by the wizzards on Wall Street. Source
Here we are back again full circle. The hypocrisy is staggering and even downright criminal! Well I’m being optimistic on the “criminal’ part. How can it possibly be “criminal” when after all there is no one to watch and supervise. There is no one to investigate who the hell brought this deal together? There is no one to investigate who are the players and how much money did they donate to Obama and the Democrats? In fact, unfortunately, I am pretty sure that I am at best one of a handful of people asking this, at worse, I am the only one.
After spending trillions of dollars stolen form us on the pretext of impeding financial gloom and doom Obama does what? Merrily spends another $3 billion to start the cycle all over again.(But it’s OK because all the time he will blame Bush for it.) Obama is just continuing the redistribution of wealth that worked so well for him with the cash for clunkers program. ( So we paid an average of $25K for a jollopy, who cares? It was T-party whitey’s money) He is doing this because he wants to continue to drain the money form the white middle class and redistribute it to minorities while at the same time guaranteeing big fat commission checks for his backers, the bankers. Those are the reasons for this purchase anything else is just window dressing.