According to the "Wall Street Journal," the federal government Monday deepened its involvement in the U.S. automotive industry by committing $6 billion to stabilize GMAC, a financing company vital to the future of struggling car maker General Motors Corp.
In a sign the government's role in the industry could become open-ended, the Treasury Department said Monday it had set up a separate program within the Troubled Asset Relief Program, a fund originally designed to help banks, to make investments directed at the auto industry. A Treasury official said the new program didn't have a specific dollar limit. In other words, the Treasury is saying that we don't know how much money it will take to save the financing arm of GM; but we will provide as much money (taxpayers money of course) as it takes.
The agreement opens a new rescue program for the auto industry as part of the Treasury’s $700 billion TARP. Keep-in-mind that the bailout was originally designed to buy troubled assets from banks and has instead become a fund for Treasury to prop up all kinds of lenders, insurers, car makers, and now auto-finance companies.
I am here to say that "we, as a nation, will reap what we sow." That is potential for hyperinflation and the total destruction of our currency.
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