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Carmakers Likely To Get What
They Want
The question is not will they get the cash. The question
has become: how much will they get?
After all the whining and attacking of executives for flying
into Capital Hill on corporate jets, those same executives are
driving into Washington in fuel efficient cars to ask for more
money than was originally proposed. Perhaps they learned from
the Treasury Secretary: if you ask for it in a financial crisis,
you will get it.
The United States Congress continues to show their unbelievable
weakness when it comes to dealing with a financial crisis.
This should have been obvious in watching the presidential
election. Neither candidate had a handle on what to do about
the economy. We cannot expect anything more from Congress,
who has not even pressured the U.S. Securities and Exchange
Commission to reinstate much needed regulations.
Executives from GM, Ford and Chrysler originally went to
Congress without a plan. Now, they've organized and are
asking for 34 billion dollars on top of 11 billion dollars for fuel
efficient subsidies. And it's almost as if the government is
excited about this. President-elect Obama is considering
putting up a "car czar" position where the government ends up with
leverage and control over the carmakers. Maybe they can run
it like the DMV.
When it's all said and done, during a panic you can count on
rationality going out the window. America is like a victim of
a shooting and the doctors, instead of taking the bullet out are
just flailing around trying to stop the bleeding.
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In the case of the U.S. automobile bailout, the U.S. Government
has been slow to respond. And that may be a good thing.
Perhaps it gives them a chance to think and be thoughtful about
what they should do. Perhaps they will consider it all carefully
from all sides.
But who are we kidding. Where the media goes, the
government goes. When Treasury Secretary Hank Paulson said
the TARP emergency funds were absolutely necessary and time was
critical, he single handedly scared an ignorant media into
submission, which scared lawmakers into submission.
Today is no different. It is commonly reported that the
automakers cannot fail. And it is commonly reported that
their business is a failure.
It is not commonly reported, however, that the deregulation of
short selling and the subsequent destruction of share price values
as a result have played a major role in the need to save
companies. The root of the cause is still a mystery to our
savvy financial media.
In fact, unethical short sellers like Jim Chanos and former
unethical short sellers like Jim Cramer instead become hosts of
shows on CNBC. In fact, in a recent New York Magazine article
entitled "The Catastrophe Capitalist," Chanos was featured in a
multi page story about his strategy of using the media to attack a
companies value and profit off of the short sale. On top of
that, he admits to hiring the financial journalist later. It
is further noted how journalists in contact with a man like him are
envied.
Where is the U.S. government when you need it? This is not
a story hidden in a court filing. It is a story now being
told by major financial media outlets. Our capital markets
are being seized by greedy manipulative scumbags - for lack of a
better description. And now we just sit on our hands and
'hope' that our new lawmaker president steps in and restores order
for our very broken financial market.
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Author:
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Perry
Rod
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Subject:
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Analysis
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Sentiment:
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Neutral
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Date:
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12/11/08 at 12:05 PM CST
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Author:
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Jeh
Mykols
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Subject:
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Off Topic
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Sentiment:
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Neutral
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Date:
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12/19/08 at 6:22 PM CST
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TAKE-A-LOOK: Economic optimism may trump GM
bankruptcy
Wall Street faces a historic shake-up next week as General Motors,
a pillar
of American industry, heads into bankruptcy, but the market could
advance
further if economic data signals the worst of the recession has
passed. Stocks could also get a boost if commodity investors see
more signs of a
recovery in demand as it would boost profits and share prices of
resource
companies, and particularly the oil industry. Though the markets
closed out May with a third straight month of gains, the
longest monthly winning streak since the fall of 2007, the broad
S&P 500
appears stuck in a range around the 900 level. Action in the
foreign exchange market and turmoil in U.S. government bonds
could undermine the S&P 500, however, as it tries to keep a
grip on the nearly
36 percent gain accumulated since diving to 12-year lows in
March.
reuters.com/ar...090531
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Author:
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Randy
Hamdan
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Subject:
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Sentiment:
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Neutral
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Date:
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05/31/09 at 11:14 PM CDT
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