Treasury GMAC Bailout A Fraudulent "Kiting" Scheme?

This infusion of cash to GMAC should prevent it's failure. The theory is now that GMAC has the cash to make more auto loans more GM cars will be sold. GM has started advertising 0% loans (to qualified customers of course) with kited taxpayer money. So you and I are actually paying for people to go buy new GM cars, it's a brave new world-Lou

The Treasury had already allocated all the $350 billion that Congress authorized for the first half of the program. But even though the Treasury Department has not yet requested the second half of the money, officials said they could provide the financing to GMAC because they have not actually used all of the money allocated for recapitalizing banks.

Catch that? This sounds equivalent to writing $1,100 of checks on a checking account with $1,000 in it because only $900 of the checks have already been cashed. In the real world, this is called "check kiting," and it's illegal.

Read Artcle Here:
http://clusterstock.alleyinsider.com/2008/12/treasury-gmac-bailout-a-fraudulent-kiting-scheme