GM Bonds Signal Market Value Topping Ford’s on Federal Bailout

digg.com ^ | 4-Jun-09 | Jeff Green and Caroline Salas

[AlanGreenSpam]

..."General Motors Corp. bond trading shows investors are betting its government-backed bankruptcy will create a company with a higher market value than Ford Motor Co., the only major U.S. automaker to shun a federal rescue."

[AlanGreenSpam]

Ford should SUE THE U.S. Government for violation of antitrust laws and unfair competition!!

The gov't WITH IT'S MONOPOLY ON CREDIT is helping out GM/Chrysler with tax dollars, giving it an unfair competitive advantage against FORD who nobly declined gov't assistance.

Pass this concept around!!!

[GeronL]

the government is promising another $30 billion...

boy GM sure is doing well

/sarc

[CitizenUSA]

There’s something seriously wrong with a free market company, Ford, being forced to compete a government backed company like GM. GM essentially has a bottomless pool of government $ to draw from, while Ford must compete in the free market for its funds. If this isn’t illegal, it should be. I will never, ever buy another GM product!

[dajeeps]

I don’t know about how smart these investors really are. Just take a look at Amtrak, Fannie Mae and Freddie Mac and you’ll know what I’m talking about.

The government messes up everything it touches, and GM will be no different.

It’s a short term smarting for Ford for sure, as the government is crowding out investment in honest and productive private enterprise in favor of safety. But in the long term, these investors will end up smarting and Ford will eventually get them back.

[Terpfen]

More proof that investors are idiots. Ford is gaining mindshare specifically because it refused to accept a bailout, and now because they’re the only one of the Big Three to not go bankrupt.

Doesn’t hurt that Ford is now making pretty good vehicles for what seems like the first time in forever. Mullally really has them going in the right direction.

[LegendHasIt]

Insanity reigns.

Sure, some people have figured out how to make short term money from other’s disasters...

But it is beyond me how these people think that GM going out of the manufacturing business and into the Cheap Chinese import vehicle business is going to sustain them for more than a few months.

[Gaffer]

Government Motors doesn’t have a higher market value than Ford in MY book. To me, it does not exist, therefore can have NO value to me. I’d sooner careen down the highway in a wheeled bathtub than a GM car/truck/SUV now. It’s owners can choke on their product.

[C19fan]

Read the last sentence of the article. I bet the UAW will. The additional $30 billion Obama promised is just the tip of the iceberg. BOYCOTT GOVERNMENT MOTORS!!!

[taxcontrol]

As long as GM is government motors ... I will not buy a single car, part or service from them.

[shibumi]

Are these “investors” the same ones who went down in flames speculating on oil at $200/barrel? Or perhaps they’re the same people who bought up sub-prime mortgages on $2MM houses?

[shibumi]

The shame of it all is that GM was just beginning to come out with some well-engineered, well-priced and good performing products. (Like the Chevy Cobalt and the Cadillac CTS and CTS-V)

Just three years ago I bought one of these (the Cobalt) after boycotting GM for 20 years and it’s the best cost/performance value I’ve had in a looong time.

[wastoute]

Think for a minute what this (the market) is telling us. Corporations that are clinging to the gummint tit have a better future than those that aren't. That should be scaring the sh!t out of investors. It doesn't seem to be. Maybe it just hasn't sunk into their conciousness yet. I would bet that Schiff and Denninger have a very different take on this and I would bet it ain't "green shoots". If it ain't scaring the sh!t out of investors it should sure be scaring those of us who give a damn about our country's future.

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[Zeddicus]

Think for a minute what this (the market) is telling us. Corporations that are clinging to the gummint tit have a better future than those that aren't.

Exactly right, and why not? "Corporations" that are now subsidiaries of this overtly fascist government will have an unfair competitive advantage so long as We The People continue to allow this government to steal from us at gunpoint to prop them up.

[RU88]

It would seem that quite a few of us Freepers are of the same opinion regarding Government Motors. The truly pathetic thing about this is that despite the bottomless pit of revenue provided by big brother they'll still lose money and market share to the Japanese, Koreans, and Germans. The fact that the government effectively controls their business decisions does not bode well for their future prosperity.

[yankeedame]

There’s something seriously wrong with a free market company, Ford, being forced to compete a government backed company...

Unfair but not unique. The (once) mighty Pennsylvania RR went through the same type of thing back in the middle years of the 20th century. (approx. 1940s-1960s) As Penn RR (and other RR) struggled to make/maintain their market share, the Fed closed various loop holes, while setting into motion the interstate highway projects and pretty much everything touching it -- favorable tax rulings, state support, etc. etc.

The RR,headed by Penn, howled at the government was using their tax dollars to aid and abet their (the RR) chief competitor when it came to long-haul/transport business. It didn't do them much good.

[Niteranger68]

There’s something seriously wrong with a free market company, Ford, being forced to compete a government backed company like GM. GM essentially has a bottomless pool of government $ to draw from, while Ford must compete in the free market for its funds. If this isn’t illegal, it should be. I will never, ever buy another GM product!

My father worked for a major busline for many years and he felt the same way about Amtrak.

[DeLaine]

I was thinking of getting another Buick LeSabre after my current one, my precious gift, but no way now. NO WAY.
Never, EVER, another GM product (or Chrysler)

[InterceptPoint]

Based on yesterday’s closing bond prices and Deutsche Bank’s formula, GM’s market value would be about $33.1 billion,

... With $65 billion in federal help, GM will shrink its debt to about $17 billion from $172.8 billion.

So we invest $65 billion to get partial ownership of a company worth $33 billion that will be run (into the ground) by the UAW. What a deal.

[bitterohiogunclinger]

“There’s something seriously wrong with a free market company, Ford, being forced to compete a government backed company like GM. GM essentially has a bottomless pool of government $ to draw from, while Ford must compete in the free market for its funds. If this isn’t illegal, it should be. I will never, ever buy another GM product!”
I am outraged over Obamas interference in the bankruptcy process as well. Ford may well be gaining in customer loyalty from people with half a brain cell. However, I still believe that all of this posturing and government takeover of GM is only painting the corpse for GM. Much like the “mortgage crisis” and “banking crisis” and every other “crisis” du jour, nothing is being fixed. They are putting a government band aid over a problem and the patient is still bleeding. The only difference is that we the taxpayers are being forced to pay for the huge legacy costs for G.M. retirees. The emperor has no clothes, the government has no money. There are sufficient fools around right now to temporarily prop up these morons ponzi schemes, but the bottom is going to fall out, and soon. Everything Obama has done to this point is the absolute worst policy to guide a country out of a recession. The staggering debt and printing of fiat currency has a price tag that is being defferred, and it's going to come due in a big, big way.

[dools007]

Yes, this makes about as much sense as what passes for stock market analysis today, why gasoline prices go up or pretending that the deficit is just a lovable little furball hanging over the heads of every American born and unborn.