It’s a travesty because up until the TARP, the executive branch needed congress to authorize any money it might want to spend, now it doesn’t, thus we have another step in the erosion of the constitution, brought to us by the right wing (whocouldanode?).

It’s a travesty because in addition to violating constitutional law they are violating federal law by extending FDIC backing to GMAC. Deposit Insurance being used to backstop bad loans. Oh, okay, sure, why not. Hey, I hear FDIC has an infinite well, no matter how much you take out there’s always more. No? oh. Bummer for the sucker whose bank goes belly up last — the safest, strongest, bank with the calmest, most savings oriented customers — they will lose out. Heh, is this a great system or what?

It’s a travesty because of Cerberus Capital Mgmt. It appears that the PE firm intimately connected with the Bush White House is going to have it’s horrendous acquisition decisions made whole by fiat action of … the White House. Just exactly what kind of crack was Cerberus smoking when it thought Chrysler and GMAC were good candidates for taking over? Just exactly what kind of crack is the american public smoking when it is willing to extend the financial resources of the group — the credit rating of the country — to make whole the insanely stupid decisions of a bunch of corporate raiders? The kind of crack that leads to the end of the system as it now exists, for sure. America cannot continue to run this way — it will run out of money. Therefore it will not continue to run this way, and since the public has not stopped it yet, it’s a safe bet they won’t ever stop it. So? Someone has to stop it, and someone will when it’s in their interest to do so.

Look for much wailing and gnashing of teeth in the forecast someday soon.

I dealt with this one at Tom’s place back in March of 2007.

It’s no less of a travesty–all the moreso because it’s basically giving money to Cerberus, after GM already paid them piles more than the company was worth when they committed to that absurd floor valuation more than two years ago–but it’s not a travesty of the automobile industry.

The Fed has become a very convenient back-door means to get a lot of things done without Congressional approval.

“… I want a better life for my kids and I am determined to see that they get it. They will, but probably not in the USA. I am going long in foreign equities, hard assets (offshore) and shorting the USA. TARP is an admission of defeat. The game is over.
We lost.”

I admire your attitude; don’t give up save, and build a better future. One game ends; some have lost, but you and your family continue.

IMO, avoid the equities, US and foreign, for another 10 months, preservation of capital in cash or wherever you think it is truly safe is the best plan until then.

Good luck, and may your children deeply appreciate what you are doing for them.

GMAC needs money so that GM can sell cars to people who can’t afford cars and really don’t want to buy cars because they are buried in debt that was used to buy assets that aren’t worth what they paid for them.

I am a saver. It dawned on me relatively late in life that this makes me an enemy of the state. So be it. I want a better life for my kids and I am determined to see that they get it. They will, but probably not in the USA. I am going long in foreign equities, hard assets (offshore) and shorting the USA. TARP is an admission of defeat. The game is over.

We lost.