Tuesday, January 13, 2009

Why you should lock up that other $350 billion 

Immediately after GMAC became eligible for TARP money, GM reduced to zero the interest rate� on certain models. This, of course, penalizes GM competitors, including Toyota, Honda and other �transplants� whose cars are made in America by Americans for Americans, and Ford, which does not have the freedom of maneuver conferred by TARP money because Ford is not taking any�
Source; h/t: Coyote Blog, who notes "If you pay people trillions of dollars in response to a bad behavior (in this case, credit lenience) then you will just encourage more of that behavior, even if everyone acknowledges it to be a bad behavior."

While we're at it, note what is introduced as Senate File 1 at our own state legislature. I'll provide you a short translation: If Obama sends us money, we're spending it on stuff we like, such as "to promote a green economy." Tax cuts? Fuhgeddabouddit.

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