For weeks we have been have been referring to the bailout of the Not So Big 3 Detroit car makers. It looks like over the objection of a majority of the American people some sort of bailout is going to happen. All that's left is to decide what to call the legislation.

I propose calling it the Corporate Reinvestment Act.

Like it's cousin the Community Reinvestment Act the legislation will result in loaning money to uncreditworthy borrowers.

The car companies will eventually default on the loans that they cannot afford to repay.

But there will be no one to rescue the lender.

Posted by: Stephen Macklin at 03:58 PM | No Comments | Add Comment