General Motors Corp., Ford Motor Co., Chrysler LLC and U.S. auto-parts
makers are seeking $50 billion in government-backed loans ..to develop and build more fuel-efficient vehicles.
The industry is also seeking fewer restrictions on how the funding is used
Yes, heaven forbid that the money actually be used for what Congress would have intended. So much better for CEO stock options and stock buy-backs - the stuff that made America great!
GM and Ford lost $24.1 billion in the second quarter as consumers, battered
by record gasoline prices, abandoned the trucks that provide most of U.S.
Presidential candidate and presumptive Republican nominee Sen. John McCain today gave his support to the proposal.
There go those Democrats giving away taxpayer money again. Oh, wait! McCain is a Republican! Nevermind.
``This is a horrible idea, another transfer of funds to failed ventures,'' said David Littmann, senior economist for the Mackinac Center for Public Policy in Midland, Michigan, which describes itself as a supporter of free-market ideals. ``If this were a good idea, the market would price the debt accordingly and give them the money.''
Mish goes on to say:
GM is not really a manufacturing company at all, but rather a subprime lender that sells cars. The market for subprime has dried up so GM needs another "transition".
So, yes, let's pour more money into companies that can't compete.