GMAC Asks for Fresh Lifeline
Lender in Advanced Talks for Third Slug of Taxpayer Cash — at Least $2.8 Billion More
- from today’s Wall Street Journal
Least Surprising Headline of the Day
Previous post: Uncle Sam, Bogeyman
Next post: A Curious Fatality
Podcast RSS Feed
Full EconTalk Text
{ 10 comments }
Most of the article is hidden;
unlike this more interesting wsj headline of the day :
http://online.wsj.com/article/SB10001424052748704500604574485351638147312.html
Most of the article is hidden;
unlike this more interesting wsj headline of the day :
http://online.wsj.com/article/SB10001424052748704500604574485351638147312.html
The article includes one sentence which bothers me:
“The willingness by treasury officials to deepen taxpayer exposure to GMAC reflects the troubled company’s importance to the revival of the auto industry.”
It’s not clear to me why GM dealerships must continue to rely on GMAC for wholesale financing. Furthermore, it’s not clear that failure of GM dealerships to obtain financing would prevent the revival of the entire auto industry.
If GM dealerships have not by now lined up alternate financing, perhaps they need to be creatively destroyed by competitors who possess more adaptable business models.
The article includes one sentence which bothers me:
“The willingness by treasury officials to deepen taxpayer exposure to GMAC reflects the troubled company’s importance to the revival of the auto industry.”
It’s not clear to me why GM dealerships must continue to rely on GMAC for wholesale financing. Furthermore, it’s not clear that failure of GM dealerships to obtain financing would prevent the revival of the entire auto industry.
If GM dealerships have not by now lined up alternate financing, perhaps they need to be creatively destroyed by competitors who possess more adaptable business models.
Yes, let’s pour more money down that rat hole.
Yes, let’s pour more money down that rat hole.
Completely OT:
Libertarianism at a new highwater mark: http://www.cato-at-liberty.org/2009/10/27/gallu…
Completely OT:
Libertarianism at a new highwater mark: http://www.cato-at-liberty.org/2009/10/27/gallu…
Well, its the government’s money, not mine, so I don’t see how what they do with it is any of my business. But I won’t be buying any government bonds, or buying any Government Motors cars.
Well, its the government’s money, not mine, so I don’t see how what they do with it is any of my business. But I won’t be buying any government bonds, or buying any Government Motors cars.