Shot in the Dark

Don’t Be Surprised…

…if the Senate denies The Big Three bailout.

Ford Bailout Money Unnecessary, Company Says

DEARBORN, Mich. — By shunning government loans, Ford Motor Co.’s top executives say they hope to buff up the automaker’s image and set it apart from its cash-starved Detroit competitors, General Motors Corp. and Chrysler LLC.

Why is Cerberus, one of the world’s richest private equity firms, begging for a bailout?

Buried on the business page of The New York Times Saturday were the details of Detroit’s biggest snow job yet–literally as well as figuratively. Turns out that Cerberus CEO John Snow, who spent three-and-a-half lackluster, and some might say lap-doggish, years as President Bush’s second Treasury secretary, is leading a who’s who of crony capitalists in a lobbying campaign for a taxpayer bailout to “salvage Cerberus’ investment in Chrysler.”

That’s right. Not to save the jobs of Chrysler employees or America’s disappearing manufacturing base, mind you, but to prevent “one of the world’s richest and most secretive private investment companies” from having to take a relatively modest financial hit and use some of its own capital to prop up the smallest of the major automakers.

As it turns out, this may end up being a GM-only bailout. Assuming Cerberus shows some integrity, and Ford isn’t willing to sell it’s soul to Congress for a handout, will the Senate be able to save one and not give something to the other two?

UPDATE: Auto Bailout Appears Dead in Senate as G.O.P. Resists

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4 responses to “Don’t Be Surprised…”

  1. Scott Hughes Avatar
    Scott Hughes

    Just a fair warning to the Big 3; go the Chapter 11 route, don’t get in bed with Pelosi, Reid, and company, that will be your doom.

  2. Dog Gone Avatar
    Dog Gone

    Isn’t it interesting that none of the other US automakers, all of them foreign brands, don’t seem to need any kind of bail out?

    If we lost the three ‘home grown’ auto companies, it would be a bad hit to the economy, with some pretty bad ripples. Were it not for the larger context of how seriously bad our economy is at the momen’t, I’d say the hell with them. We have lost plenty of other car manufacturers over the span of our history.

  3. Mr. Shirt Avatar
    Mr. Shirt

    The idea that the Auto companies will go out of business if the aid doesn’t pass is propaganda developed by both the companies & the unions.

    Call the bluff, GM declares chapter 11 & all the companies find the need to restructure, becoming more efficient. As a result, all three survive in a vastly improved state with lessons learned. Worst case, GM can’t recover, The other two grow. Like a tree with a diseased limb, remove it & the whole of the tree grows stronger.

    Fall for the bluff, nothing changes. Inefficiencies continue, but who cares? The government won’t let them fail!

    Either option ensures economic pain, only one option provides a cure to the pain.

  4. Mr. Shirt Avatar
    Mr. Shirt

    Well, looks like the Republicans resisted, but Bush did not.

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