Be Wary of Ford's Confidence

The business media had two ways of looking at Ford's(F Quote) vow to not go on the government dole, in the wake of its more-than-expected $5.9 billion quarterly loss reported on Thursday. There was my way, and then there was the wrong way.

First, the wrong way, represented here by Reuters. Its theme is simple: Ford lost nearly $15 billion on the year and has big time cash trouble, but it won't seek any federal help. How do we know it won't? Because it said so. End of discussion.

Reuters doesn't, for the sake of the savvy investor looking for insights into what will happen in the future, question how long Ford can hold onto its pride and promises in this regard.

Here is its lead: "Ford Motor Co reported a record $14.6 billion full-year loss on Thursday but said it would have the cash to survive the worst downturn in auto sales in decades without a U.S. government bailout."

Well, sure he said it. But if history, from the financials to Apple(AAPL Quote). have taught us anything, it's to question the claims of those in corporate authority, right? Especially when the facts or numbers don't seem to be stacking up so neatly. Otherwise, the business media are functioning as little more than a megaphone for those in power, which does not help the savvy investor one iota. Look, Ford's stance and strategy to go it alone is admirable. It will probably court favor with car buyers, not to mention give them the confidence that Ford is in somewhat better shape than GM(GM Quote) and Chrysler, which it clearly is. But then, being in better shape than those two doesn't say much. I can hold your hand through the disaster that is Ford's cash burn rate, but suffice it to say it might take something nearing a miracle for the company to make it without accepting one thin dime from the government.