Just like welfare becomes a disincentive to self-sufficiency for individuals, it becomes the same for bailed-out companies. GMAC is negotiating with the government to receive even more of our tax money.
The U.S. government is likely to inject $2.8 billion to $5.6 billion of capital into the Detroit company, on top of the $12.5 billion that GMAC has received since December 2008, these people said. The latest infusion would come in the form of preferred stock. The government’s 35.4% stake in the company could increase if existing shares eventually are converted into common equity.
…
While GMAC would be the only U.S. company to get three capital injections from the government since the financial crisis erupted two years ago, thousands of banks and other financial firms remain weakened by exposure to fallen real-estate values and clobbered financial markets.
You don’t suppose this has anything to do with the $4.5M the UAW contributed to Obama’s presidential campaign?
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