Why GM's in trouble: "If GMAC were an independent company, it would be the 8th-largest U.S. bank"

[Hannah Bell]

"If GMAC were an independent company, it would be the eighth-largest U.S. bank,"

Bloomberg

Whoops: source I linked was a bircher reprint, i'll find the original.

here it is:

http://www.bloomberg.com/apps/news?pid=nifea&&sid=a6tB6.NTMKBk

[Hannah Bell]

1. Why GM is in trouble, part 2: subsidizing their gas guzzlers

http://marketplace.publicradio.org/display/web/2006/05/24/gm_to_subsidize_gas_guzzlers/

Wednesday, May 24, 2006

GM to subsidize gas guzzlers

General Motors will subsidize gas purchases in Florida and California to boost SUV sales in those states. It will cap gas prices at $1.99 per gallon for new buyers of some 2006 and 2007 vehicles.

[napoleon_in_rags]

2. And my children should be forced to pay for this why?

[hay rick]

3. More recent article.

http://news.bbc.co.uk/2/hi/business/7711419.stm

The OP article is from 2004? GM has since sold a 51% stake to Cerberus. The 49% remaining stake is no bargain. The GMAC exposure may be the primary reason that GM is in worse shape than Ford and Chrysler. Note that GMAC has significant exposure to the home mortgage business and so far hasn't received TARP money.