[Homestead] Another take on F&F
Clansgian at wmconnect.com
Clansgian at wmconnect.com
Mon Sep 8 14:21:52 EDT 2008
> >Look at Chrysler now. They have been functionally bankrupt for awhile now.
> Bridge loans have turned into pier loans
Very correct. Chrysler (and Ford and GM) essentially got out of the vehicle
making business, that is, prudent manufaturing decisions were secondary, and
got into the finance business.
But the most important point here is that the Chrysler bailout was a loan,
not a take over. The Fed has already been floating loans to F&F for some time
totaling much more than all the money guaranteed to Chrysler and it STILL
didn't keep them afloat. This present isn't a Chrysler-like bailout, it is
assuming contol and responsibility for those two "companies". Very mucho different
proposition. </HTML>
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