Bond Market Punishes Companies After Auto Rift

by Benjamin Domenech on 2:04 am May 28, 2009

“Companies are being punished in the bond market as the Obama administration’s policies on GM, Chrysler create new risks for creditors.” Under activist government, business moves to the sidelines and waits, because they don’t make investments when the rules of the game could change arbitrarily. Same thing happened during the New Deal, prolonging the Depression.

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