End Finally Near

Unfortunately the end is hardly near. But it should be. The main worst-question to contemplate today is thus: how much will GM pay in fines to the government after the faulty ignition scandal is over? The logical answer to that question is: will the paid fines actually have anything to do with the crime or, like wall-street, is it just bribe and/or extortion money? (Sorry to answer a question with another question.)

Here’s worst-writer’s worst-take aka worst-conspiracy theory about what’s going on with GM right now and how that relates to everything else that’s going on that has put the whole shebang on the edge (of failure). Companies like GM and Chrysler have ratted out the government by taking bailout money. GM really thought that they were the same as the debt ridden banks on wall-street that have been doing nothing but speculating on American’t debt. For you see, going back to the late 1980s, American’t car makers became their own banks, i.e. their own debt owners in financing their own cars. The difference to wall-street, though, is that GM actually has tangibility and hence can use that as collateral for its debt making–which it did with exuberance. Of course, the Fed, the govt. and wall-street never looked at car-makers as equals. In a way, car makers, posing as bankers that manufacture, stole some shine from wall-street for a short while there. Now they are being made to payback dearly.

Rant on.

-tgs-