Ford's Plan to Congress

[jpd2atl]

Ford's President has told Congress that if the economy does not get any worse, Ford will not need the loan, unlike GM & Chrysler. Here is the plan submitted to Congress 12-02-08:

http://www.freep.com/assets/PDF/1202fordplan.pdf

[MsgMills]

Of the 3 Major Automakers, I do believe ford has their bases covered for the next 3 or 4 years. Where as GM and Chrysler are merely thinking about just staying above water for the next month or 6 months....

I love it that they are now having to drive to the locations of the meetings and not being able to spend money on air fare in private jets or Regular Air Travel..... Bring the Clowns back down to earth.

[AteUp]

How do you drive everywhere for a meeting? Sometimes they have to fly. IMO, Ford can't make enough money on those little cars to keep paying the benefits that they have been to their workers. Something's gonna have to give somewhere. Maybe they're counting on the new government buying cars for all the low income families?:eek:

[Wildcat]

Good for Ford!!

But it brings up another question. If Ford is in such good shape why are they asking American Taxpayers for money??? They should go to the banks for their "loan" like they normaly do.

Another question is, what has happened in just the last two weeks to change things so much??

Two weeks ago the Big 3 was asking for $25 BILLION and now they are asking for a total of $34 BILLION from the American Taxpayers. But at the same time Ford says it MIGHT not need the money.

No mater, it is a DONE DEAL. The Big 3 WILL get the American Taxpayers money and as much as they want. Speaker of the House Nancy Pelosi publicly said yesterday that "banckruptcy was OFF the table". So no mater what happens, no mater what the Big 3 does or does not do, they will get the money. The so called plans are just for show to fool the taxpayers.

[trust me]

Good for Ford!!

But it brings up another question. If Ford is in such good shape why are they asking American Taxpayers for money??? They should go to the banks for their "loan" like they normaly do.



If you owned the 1st National Bank of Wildcat, would you be rushing to loan billions to an automaker right now? Neither are any of the other bankers.

The Big Three debentures have been in junk status for years. They have to offer outrageous rates to get anyone to touch their stuff. Remember, a corporate bond has no insurance, no guarantee. You do you homework and you take your chances. Nobody is willing to take that chance anymore so their only recourse is to run to the govt.

I read that the proposed gov't bailout for the automakers is actually in the form of a govt' guarantee of their corporate paper. It's the same thing as co-signing on a loan for an irresponsible family member.

[daking]

Editor, Toledo Blade

Dear Editor:

Detroit auto executives advocate "government getting a stake in the auto companies that would allow taxpayers to share in future gains if they recover" ("GM exec: bankruptcy not an option for industry," December 3).

I remind these executives that each American is already perfectly free and able, with no action from government, to "get a stake" in these companies. Of course, few Americans now choose to do so - a fact that reflects the considered judgment of millions of people that these companies are unworthy recipients of investment funds. If millions of investors, spending their own money, refuse to invest in GM, Ford, and Chrysler, why should Congress force them to make such investments? Why should we trust that Congress will make wiser investment decisions with other people's money than these people themselves make with their own money?

Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
Enterprise Hall
George Mason University
Fairfax, VA 22030