[steinravnik]

GM, Ford extend gains as investors anticipate federal loans

SAN FRANCISCO (MarketWatch) -- General Motors Corp. tacked on another 5% early Friday as the likelihood of a government-sponsored cash infusion of as much as $50 billion is increasing in the eyes of Wall Street. "Although these loans do not 'fix' any of the structural challenges facing the U.S. automakers, it is our view that the loans could potentially provide a means for avoiding liquidity problems through, and slightly beyond 2009," Deutsche Bank analyst Rod Lache said in a note. He added that he expects to see a potential funding bill announced on Monday.

http://www.marketwatch.com/News/Sto...D4-B810-453F-81E9-8F070875878B}&siteid=yhoof2

 

[steinravnik]

GM, Ford climb on federal loan optimism

NEW YORK (AP) -- Shares of Ford Motor Co. and General Motors Corp. climbed on Friday as investors grew optimistic about the prospect of federal loans for Detroit's major automakers.

Ford shares rose 23 cents, or 4.9 percent, to $4.91 in morning trading. GM shares added $1.50, or 11.8 percent, to $14.25.

Ford Chief Executive Alan Mulally made his case for the loans on the cable network CNBC Friday morning, saying the Dearborn, Mich., automaker is working to develop a portfolio that includes small cars already on sale in other parts of the world.

Separately, Goldman Sachs analyst Patrick Archambault said in a client note on Friday that "it is more likely than not" that the loan program would receive at least partial funding before Congress adjourns this fall.

Thursday evening, Deutsche Bank's Rod Lache said there is "an increased probability" the automakers would get $25 billion in loans.

The auto industry wants to secure up to $50 billion in government loans over three years to help it modernize factories and develop more fuel-efficient vehicles. Congress authorized $25 billion in loans in last year's energy bill but hasn't funded the program.

GM, Ford and Chrysler LLC have sought the loans following months of tight credit markets, weak sales and high gasoline prices.

http://biz.yahoo.com/ap/080912/automakers_mover.html?.v=1

 

[Rocket 88]

How pathetic is this?

 

[silvergoat2k6]

How pathetic is this?

Very.

 

[tgagneguam]

Absolutely shameful that the government is getting in the business of levying taxes on its citizens so that that money can be directed to American companies as low-interest loans to "help" American industry. I know that "America First" people are for this, citing the profit made from a similar arrangement made with Chrysler in the 1980's. But just because there's potential money in it for the government doesn't make it the right thing to do.

I find the notion of "privatized success, socialized risk" a filthy development in corporate America. It will erode the competitiveness of American enterprise globally.

How 'bout we let citizens keep their earnings, which will allow them to support American companies directly when those American companies make compelling products?

 

[fp115]

Absolutely shameful that the government is getting in the business of levying taxes on its citizens so that that money can be directed to American companies as low-interest loans to "help" American industry. I know that "America First" people are for this, citing the profit made from a similar arrangement made with Chrysler in the 1980's. But just because there's potential money in it for the government doesn't make it the right thing to do.

I find the notion of "privatized success, socialized risk" a filthy development in corporate America. It will erode the competitiveness of American enterprise globally.

How 'bout we let citizens keep their earnings, which will allow them to support American companies directly when those American companies make compelling products?

But having potentially hundreds of thousands of people losing their jobs is a better recourse? Loads are paid back and will in most case not affect taxes. But having so many people lose their jobs during the fall of one of the companies will affect the nation so much more.