watchone

Ford: Federal Loan Package Doesn't Entice Kerkorian To Stick Around

I completely disagree.
(1)There was no bailout of Chrysler. The government guaranteed a loan that Chrysler had arranged through a thrid party. The loan was paid back early with interest - there was $0 cost to the taxpayer
(2) Ford has about $38 billion they in cash and credit lines with $0 from the govt. in loans or guarantees. So we cannot make them file right now. If they do file though we -tax payers-are saddled with providing those who lost jobs in terms of pensions, lost taxes, and lost retirement benefits. Not only from Ford, but from dealers, suppliers and associated businesses. The factories will be torn down or rot...it is cheaper to build new and no one will invest in factories in MI without govt. incentives
(3) Compare the Chrysler in the early 1980's (we saved jobs, stabilized a company, retained shareholder value and saved associated businesses $0 to the taxpayer) to Kmart in the late 90's (shareholder value to 0, lost pensions, taxes etc.) and then VC guys pick up the pieces cheap and make a fortune