BrianGarst.com

GMAC is the latest entity in which the federal government has taken a majority stake:

The federal government said Wednesday that it will take majority control of troubled auto lender GMAC and provide an additional $3.8 billion in aid to the company, which has been unable to raise from private investors the money it needs to staunch its losses.

Is it just me, or would it not be obviously beneficial to stop and ask just why it is that private investors aren’t willing to give them money? Perhaps there is a lesson we can learn from them that would be of benefit to the taxpayers responsible for producing this $3.8 billion.

The Treasury Department has said for months that GMAC would need more federal money, but the decision to increase the government’s ownership stake came as a surprise, cutting against the grain of the Obama administration’s recent efforts to wind down its bailout of large banks.

Who could they possibly have found that is surprised by yet another foray into the private sector by this interventionist White House? Under what rock must such a person have been living for the last year?

GMAC socialism