Thursday, April 2, 2009

GMAC Goes Back to the SubPrime Well

Why not? If the plan works, the company makes some money and perhaps stays alive. If the plan fails, who cares? They are playing with taxpayer money. All of the government's fixes have raised moral hazard to (perhaps) an all time high for this country. The taxpayer backstop will mitigate losses, so the smart thing to do is take more risk.

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