commentary on Politics and a little bit of everything else

GMAC will be getting more money….again

GMAC…..the mortgage and lending people…not the car people…. are going to get another $3.5 billion to help it get back on its feet……the money will come from the tarp funds set aside last year…….

Despite the government aid, GMAC remains on shaky financial ground. Last month, it reported a quarterly loss of $767 million. The company has struggled under the weight of its ailing mortgage lender, ResCap. The unit was a major dealer in sub-prime mortgages and is still suffering from soured loans it made during the housing boom. Some analysts have speculated that GMAC might have to shut down ResCap altogether.

However, a bright spot for GMAC has been Ally Bank, its online consumer banking unit. The bank has offered some of the highest interest rates on CDs in the industry, helping bring in billions of dollars in new deposits this year. But the rates have also irked rivals and drawn the attention of regulators, since as the rebranded banking unit of GMAC, Ally has the backing of billions of government dollars loaned to GMAC.

the company will probably need another infusion of about $2 to 5 billion……

What’s another billion here or there?

December 30, 2009 Posted by | Breaking News, Government, Media, Politics, The Economy | , , | Leave a comment

The TARP cost will be $200 Billion less…….

In more good news for the Obama administration, and further proof that the economy is recovering….The Treasury Department reports that over the next ten years, the Troubled Asset Relief Program (TARP) fund will reguire $200 billion less than expected….The banks have already paid back $70 billion earlier than expected and the reduced need to help financial markets which have not asked for more money (and don’t want the government in their business if they take the money)……the Treasury has also made $10 Billion in interest from some of the bailout paper they invested in to prop up financial institutions….

While this sounds good…myself and others advised that all this would happen since the same thing occurred when the government came to the rescue of Chrysler and the Airline industry in the past and made money then also…..contrary to the doubtful media talking heads…all of the things done by the Obama administration and Hank Paulson going out the door were tried and true fixes to the economic problems that confronted them…..

Like anyone else..the argument will be between Congress and the White House on what to do with the money set aside, but not needed…like kids in a toy store, they will no doubt be thinking of all sort of things to spend the money on…..

The Treasury expects to recover more than $175 Billion by the end of next year…not bad ……

Look for a jobs Stimulus bill in the early spring…….

December 7, 2009 Posted by | Breaking News, Government, Media, Politics, The Economy | , , , , | Leave a comment

The person behind the name Neel Kashkari, who handled $700 Billion for Paul Volker and the United States of America….

The is a behind the scenes piece about Neel Kashkari, the bail-out whiz, appointed to work with Treasury Secretary Hank Paulson in the waning days of the Bush Administration (he later worked breifly in the Obama administration at  Treasury)….

While we have all trashed the Bush administration’s handling of the economic downfall…Kashkari was there ….deer in the headlights….scared and under huge pressure to produce and thrown in front congress to the heat……

The piece mainly focuses  on Kashari decompressing, back in California after watching a fellow worker experience a heart attack working all nighters to help deal with the financial crisis……

He is portrayed as a real human being who had a job to do and is suffering for it…..along the way he admits…he bad judgements …but it the thanklessness of those days that haunt him…which is why he has tried to get away by living a simple life with his wife back in the boonies in California…

….it hasn’t worked….he still dreams of D.C…..and the pain……

Even though the economy is slowly getting better…….

Note:  He isn’t that detached…while he’s not working now…he is helping Paul Volker write a book…..got to get his fix…anyway he can….

December 6, 2009 Posted by | Government, Politics, The Economy, Travel | , , , , , , , | Leave a comment