Treasury to Ford: Drop Dead (The GMAC rescue plays favorites)

WSJ ^ | today | staff

[Ron Jeremy]

When the Bush Treasury decided to bail out Detroit, GM and Chrysler quickly said yes to the taxpayer cash, but Ford Motor Co. said it didn't need the money and declined. Ford's reward for this show of self-reliance? Treasury is now helping GM again by giving it a credit pricing advantage against Ford in the marketplace.

That's one little-noted result of Treasury's action earlier this week to rescue GMAC, the GM credit arm that, as it happens, is 51% owned by the Cerberus private-equity shop that also owns Chrysler. With $5 billion in taxpayer cash in its pocket, GMAC quickly decided to offer 0% financing on several of its models. "I think it would be fair to say that without this change . . . we would not be able to do this today," explained GM Vice President Mark LaNeve in a conference call with reporters this week.

[Ron Jeremy]

W is the worst President in history. The entire economy is being socialized at a pace that the Dems could only dream. France would be proud. And what happens to a company that turns down the generous offer? The gov't tries to wipe them out.

Count the days until Jan 20th. Obama never would have gotten away with this.

[M203M4]

That fascist faggot bastard Keynes said the same damn thing about “destroying capitalism to save it”.

[SolidWood]

I’m not sure about worst in history... but an utter disaster on pretty every point beside Iraq. It pains me to say this. He failed America BIG time.

[ReneeLynn]

It looks good for GM now. Just wait...

[TheWasteLand]

What's going on is disturbing - the political and economic elites seem to have lost their minds. They're so afraid of a downturn that they're destroying the foundations of the free market.

I don't pretend to know what the full repercussions of their actions will be (economic, political, and global), but I do know they're going to be very, very bad. Much worse than if they'd left the economy alone.

[conservativeharleyguy]

It’s simple. Chrysler and GMAC are owned by Cerberus Capital. Look at who runs Cerberus, and you’ll have your answer. It may surprise you (hint.... a certain former VP [not manbearpig], among others).

[clintonh8r]

A natural consequence of rewarding failure....success and self reliance are punished.

[hunter112]

Ford was being canny with its refusal to take the money. If indeed, consumers won't buy a car from a company that is about to go bankrupt, then a company that refuses a bailout is showing itself to be the healthiest one, isn't it? Ford also benefits colloquially from GM and Chrysler lapping up the money, it keeps the suppliers that all three depend on in business.

Back when Ford stock was selling for nearly nothing a month or so ago, I picked up a few shares. Not a lot, about as much as I'd wager on a Super Bowl bet. I was figuring that Zero would bail them out and the stock would soar on the news, and I'd cash out. Should have done so when Bush announced the bailout of the other two.

But I still think that the UAW might give in, or Zero might announce an even more massive bailout, or tax incentives on buying a vehicle from the Big Three. The stock would rise, and I'll cash my chips in at that time.

[Capt_Hank]

Yes, plus they are buying up firearm manufacturers. Something is in the wind.

[South40]

Bush sucks for sure. But there’s no way he’s a worse president than was Jimmy Carter.

[bronxboy]

Ford is about to become a bank also.

[autumnraine]

Not just Dan Quayle, but Bush Sr.’s Treasury Secretary John Snow.

[autumnraine]

That’s kind of my take. This is all a good Oliver Stone movie plot, but I can’t help sit up and take notice.

[P8riot]

What's going on is disturbing - the political and economic elites seem to have lost their minds. They're so afraid of a downturn that they're destroying the foundations of the free market.

Let them all self-destruct. Just hate the collateral damage thing.

[NonValueAdded]

Ford may have the last laugh yet. Wait until GM sees the renewed demand and tries to open a SUV line. A string gets pulled and the Car Czar says “not so fast; you’re supposed to be building green.”

[rabscuttle385]

What's going on is disturbing - the political and economic elites seem to have lost their minds. They're so afraid of a downturn that they're destroying the foundations of the free market.

They are not just afraid of any downturn; the establishment is afraid of its own downturn. What we are witnessing is the elite throwing us peons to the wolves to save their own skins.

[Zeddicus]

Bush is exponentially worse than Carter. Domestically, worst President ever. Nobody other President in the history of the USA has managed to impose unabashed socialism on this level.

This country is done, and only a revolution will turn it around.

[rabscuttle385]

*Ping!*

[rabscuttle385]

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[TalBlack]

“the political and economic elites seem to have lost their minds. They’re so afraid of a downturn that they’re destroying the foundations of the free market.”

Mainly because they are responsable for the down and they KNOW IT.