December 30, 2009

SO HOW’S THAT BAILOUT GOING? Feds take over GMAC. “The federal government said Wednesday it will take a majority ownership stake in the troubled auto lender GMAC, providing another $3.8 billion in aid to the company, which has been unable to raise from private investors the money it needs to stanch its losses.” Bad money after . . . other bad money. But hey, it’s not their money, it’s yours, so what do they care?

UPDATE: A reader emails: “Ditech is a wholly owned subsidiary of GMAC – So now Fannie and Freddie have a blank check, what does that do for Ditech?”

ANOTHER UPDATE: And who was running GMAC? A guy with ties to Bernie Madoff.