Subprime Mortgage Debacle Makes General Motors Cry

Hey, you may be asking yourself, why are GM’s profits down 90% from this quarter last year?

Last year they made $602 million dollars in the first quarter. This year they made $62 million. Hmmm. From the NYT:

It was the company’s second consecutive quarterly profit, but the number was weighed down heavily by losses from subprime mortgage loans made by the General Motors Acceptance Corporation.

Ouch. Irresponsible lending practices only hurt poor people with bad credit, huh? —MEGHANN MARCO

G.M. Profit Down 90% From 2006 [NYT]
(Photo: jm3)