Thursday, February 19, 2009

Doubling down

In the continuing battle about bailing out our automakers, columnist Paul Ingrassia beats up on both sides. But I found this line interesting.
The union, though, shouldn't bear the entire blame for Detroit's disaster. It wasn't the UAW that pushed GM into the home-mortgage market where it has incurred billions in losses over the last couple of years.

Why would GM enter the home-mortgage business? They needed more money for their pension obligations than their tradition business plan would provide.
Reminds me of a bit player in the "24" movie in November. He lost money in the stock market, and looking to make money back, agreed to help gun traders and money launderers. He would get extra cash if he asked no questions. He did ask questions and got a bullet in the head. He had to double-down on his bad bet and made a worse, fatal bet.

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