This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Today's Outrage: Automakers Need Bailout, Too

Why should banks and insurers get all the free money?

Cerberus paid $7.4 billion to acquire most of Chrysler. Let's consider that a bridge loan, not unlike the $85 billion loan (AIG - Get Report) received in September.

Why can't the U.S. government step in and help the automakers this time -- with a tidy profit for Cerberus, of course?

We're only talking about a small percentage of the $700 billion bank bailout money. Somewhere between $20 billion and $25 billion should be enough to cover the $12 billion General Motors (GM - Get Report) wants to finance a merger with Chrysler, plus a little something for Ford (F - Get Report) to keep it fair and a few billion to help the unions get over their objections to all the job cuts that will be coming.

But the Treasury Department doesn't seem inclined to include the carmakers in the banking bailout.

No matter. There's talk of providing relief through the Energy Department. To get that money, the companies may need to give some lip service to producing more fuel-efficient vehicles.

Some free-market capitalists may object to the government telling automakers what kinds of cars to make. But let's face it: GM, Ford and Chrysler haven't been doing such a hot job of deciding that themselves, anyway.

So let's just cut some checks already. The way things are going, U.S. automakers won't be making any cars if they don't get help.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AIG $56.99 0.00%
F $15.77 0.00%
GM $35.59 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs