Comments on: Can You Say, “Moral Hazard?” http://www.coyoteblog.com/coyote_blog/2009/01/can-you-say-moral-hazard.html Dispatches from a Small Business Sun, 12 Feb 2012 09:39:47 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Zach http://www.coyoteblog.com/coyote_blog/2009/01/can-you-say-moral-hazard.html/comment-page-1#comment-15961 Zach Mon, 19 Jan 2009 22:25:53 +0000 http://www.coyoteblog.com/?p=6838#comment-15961 "GMAC has begun making loans to borrowers with credit scores as low as 621, a significant relaxation of the 700 minimum score the company adopted just three months ago as it struggled to survive. America’s median credit score is 723" Last year it was the real estate bubble, so is this the year of the car bubble? If repossessing lots of homes (normally an appreciating asset) winds up crushing banks, how will repossessing lots of cars (a depreciating asset) work out for 'em? I've got an idea: let's put these clowns in charge of health care. “GMAC has begun making loans to borrowers with credit scores as low as 621, a significant relaxation of the 700 minimum score the company adopted just three months ago as it struggled to survive. America’s median credit score is 723″

Last year it was the real estate bubble, so is this the year of the car bubble? If repossessing lots of homes (normally an appreciating asset) winds up crushing banks, how will repossessing lots of cars (a depreciating asset) work out for ‘em?

I’ve got an idea: let’s put these clowns in charge of health care.

]]> By: HS http://www.coyoteblog.com/coyote_blog/2009/01/can-you-say-moral-hazard.html/comment-page-1#comment-15777 HS Mon, 12 Jan 2009 15:26:34 +0000 http://www.coyoteblog.com/?p=6838#comment-15777 It is very easy for people to think a certain way. That certain way has usually been done on purpose. Maybe Cerebus, who owns 51% of GMAC and Chrysler, forced GM and Chrysler to talk. Maybe part of the force was to increase credit rates above 700 to push GM. Maybe Cerebus pushed GM into tapping the government for help. Or maybe it was a way to show the government it was struggling (by pushing up credit requirements, that also reduces sales). I am sure these are just your views but lets not get so blind sided into thinking a certain way. We should explore all posibilities and be sceptical of everything. When we are not, we become brainwashed into thinking certain ways. It is very easy for people to think a certain way. That certain way has usually been done on purpose.

Maybe Cerebus, who owns 51% of GMAC and Chrysler, forced GM and Chrysler to talk.
Maybe part of the force was to increase credit rates above 700 to push GM.
Maybe Cerebus pushed GM into tapping the government for help. Or maybe it was a way to show the government it was struggling (by pushing up credit requirements, that also reduces sales).

I am sure these are just your views but lets not get so blind sided into thinking a certain way. We should explore all posibilities and be sceptical of everything. When we are not, we become brainwashed into thinking certain ways.

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