"Bloomberg reports that GM Considers Buying back GMAC
Or starting a new unit.
Having its own financing unit will 'increase its profitabiltiy.'
"As a dog returns to his vomit, so a fool doth repeat his folly." Proverbs 26:11
Unless of course you get to keep the gains, and a greater fool, the public, assumes your losses."
The Bloomberg story is here. I can only pray that if GM is allowed to get back into the financing business, they are heavily restricted in terms of what they can do... The Bloomberg article mentions "GM probably wouldn’t want GMAC’s mortgage business." I should hope not - they shouldn't be allowed to have anything to do with the mortgage business. They are a car manufacturer - or did we all forget that already?
2) Tyler Cowen on the EuroBailout:
"I view it as a bit like the U.S. in Afghanistan. Whether it will yield anything useful from here on in can be debated for a long time. But if we pull out precipitously, and the Taliban take over, it will be seen as a big U.S. loss (whether that's worth the cost is not the question of concern here, only that it is a gross cost, whether or not it is a net cost, all things considered)."
3) John Stewart on Wall Street's Fat Finger:
| The Daily Show With Jon Stewart | Mon - Thurs 11p / 10c | |||
| A Nightmare on Wall Street | ||||
| ||||
"Apparently last Thursday at 2:40 PM Wall Street got fat fingered."
"Course when it happens really fast like that it probably feels more like two fat fingers in the DOW and then one in the NASDAQ... I guess that's why it's such a shocker to the economy."
-KD
3 comments:
Jesse is as sharp as they come. The shocker joke probably went right over the head of maybe half the audience, or at least I would hope so, HA!
he gets a little too "foil hat" sometimes... but i think his simple, eloquent/elegant GM post is perfect.
GM getting back into the finance business is a perfect symbol of the fact that we've really learned nothing in this whole crisis and are busy trying to go right back to where we were. Good grief.
Just as with all the other businesses in other industries that made more money doing the finance side than actually selling their supposed primary product; like used car dealers, mobile home sellers, etc, etc.
We're doomed if we can't squeeze the finance sector back down to a rational percentage of our economy and get back to actually producing products/services or REAL value.
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