More Financial Woes – GMAC and Non- profits

The economic crisis has caused a myriad of problems for consumers and corporations, as well. Because consumers have cut back on their donations to government organizations, the non-profits have received twenty percent less donations this year.

As we watch the number of homeless people increase and jobs decrease, one would wonder how the U.S. government is going to handle the projected increase in homeless people in the next two years. Homelessness is a worldwide problem as there are about just as many homeless people in te United States as there are orphans in Kenya. However, Kenya has a smaller population, approximately 37,000,000 as opposed to over 286,000,000 in the United States.

Many believe that the situation in our own country demands attention. People are sleeping in cars, under bridges or in homeless shelters as many people are losing their homes because of an inability to pay mortgages and car loans which increased or because homeowners lost jobs.

In the midst of all of this, the U.S. government has agreed to give more aid to GMAC, the largest provider of loans to Chrysler and General Motors. Recall, CIT Bank, the largest provider of loans to retailers, just filed for Chapter 11 Bankruptcy a few months ago after having received money from its shareholders to restructure their business.

This may be justified to help save jobs which may be lost if GMAC goes out of business. Will history repeat itself in the wake of the CIT Bank woes? As we begin a new year, we may not be out of the recession if GMAC goes bankrupt. It had to turn to the government because of its inability to seek funding from private investors.

Because of the Bernard Madoff scam, many donors have decided to give locally instead of on a federal level. As a result, many of the non-profits have experienced a decline in the amount of donations. This resulted in a cutback in services to the underserved populations.

The economic crisis has caused a complex set of problems to the United States. It was great to see that people resumed their spending for the holidays and hopefully this will increase as we enter a new year. If you enjoy the content on this blog, subscribe at the top of the page to keep up on the new posts.

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9 Responses to More Financial Woes – GMAC and Non- profits

  1. James K. says:

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  2. Another a informative great post by you hope to come back more really soon.

  3. Summer Camps says:

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