The General Motors Business Model

1)  Sell cars using taxpayer financed subprime auto loans (click on graph to enlarge):

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2)  Recall the cars:  GM recalls another 717k cars, nearly 30 million recalled this year so far.

3)  Barack Obama approves of this business model.

3 thoughts on “The General Motors Business Model

  1. About 25 years ago, I remember reading an article in the Economist (when it was still credible) analyzing the state of the global automobile industry. They maintained it needed to downsize by 25 % or more then. All of those companies still exist, and more have since been created or expanded, such as Tata and other Chinese companies. When your a government favorite like the auto industry, rationalizing and becoming efficient isn’t necessary when your backstopped by the public purse.

    1. Well said, there’s whistleblowers and dead weight being washed overboard as a few are bailed out and clean up.
      Before the panic sets in and all they batten down the hatches of the markets, bank accounts and funds, and the skittles storm rolls in with a dollar tidal selfie, TPTB are drawing from the bottom of their dark septic pool of deepest, gooiest, most marginal “fuels”. Clear, transparent liquid was debased and hoarded even before the bilge pumps came out and the plundered, toxic ship-of-state became fully submerged in debt.
      How many more ways left to leverage up, monetize, securitize, liquify or reliquify muck which is all but stuck? Good luck!
      Automaker default swaps (ADS), Deposit backed securities (DBS), Collateralized Bond Obligations (CBO)… what a drag, the scene has turned Queen’s evidence.

      http://wallstreetonparade.com/2014/07/lawsuit-stunner-half-of-futures-trades-in-chicago-are-illegal-wash-trades/

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