This can’t go on
Posted by Richard on January 23, 2009
Remember how the feds recently "bailed out" General Motors and Chrysler? That money — at least part of it — was in the form of loans. So what's GM doing with the money? Well, I wouldn't call it spending it wisely. Mark J. Perry noted today that GM is now offering 0% financing to car buyers, and pointed out what that means (emphasis in original):
Quote of the day from Jeff Macke (CNBC Fast Money contributor) via Dennis Gartman's "The Gartman Letter":
"GM has become a company that borrowed money from the U.S. government at 8% and lent it to the American public at 0%. This is not a model we would like to build upon.”
MP: And GMAC lowered credit standards at the same time it offered 0% financing.
The late economist Herb Stein famously said, "If something can't go on forever, then it won't."
It looks like GM won't.
This bailout/stimulus crap has got to stop.
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