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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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