GM/Ford/Chrysler warranties

So if the gov’t wants to do something productive how about creating a US Gov’t warranty program for these automakers? Right now, I would tell anyone that they probably shouldn’t buy one of these cars because there is so much risk in the warranty (warranties would probably go in a bankruptcy filing). The gov’t can take away this risk and help sales of the car companies which means it might be a costless way of avoiding gigantic bond defaults and the accompanying interconnected problems.

I agree. With respect to a bond default by GM, it would be Armageddon. People have said there is a trillion dollars worth of insurance sold on GM bonds. All I ask is, who has that cash to pay?

I dunno, will they take a check?

Sent letter to Chris Dodd. He might like such a proposal.