I cannot believe GM is doing this all over again. But, why should I be surprised? Subprime lending for housing never went away, it just transferred from the private sector to the public sector (FHA and low down GSE loans).
Hopefully someday, this nightmarish credit bubble will end. Yes, we’ll have deflation, but it’s the ONLY way for us to work our way out of this mess in a sustainable way. Everything they’ve done thus far is making the problem bigger and longer-lasting.
