Bailout Bust

" 04 report the numbers today and it's pretty fantastic Ford. Reported. Weighed more than Wall Street was expecting reported a billion nearly a billion dollars in profits. For the third quarter. Part of it we talked Al mile Leo the CEO. Earlier today on the Fox Business program. And he said yeah he says the yep that was that was a quarter with. With the cash for -- and nieces and that and it's certainly stimulated some demand. But he said we grew our top line we -- we we cut our costs we grow our bottom line. They had -- drink in their credit arm Ford Motor credit. And out of all of this -- Then they're there ahead of where they thought they would be. And like everybody else they're going you know we. We think we are going to see a good fourth quarter. There's no cash for congress program this quarter were they think it's gonna be uses a strong and they think they've got some tests so let's sustainability. They have UAW contracts that are richer than the other companies because they did not. Have to go through the same process because they never took good and any federal money. And the UAW did not have to go through the bankruptcy process like General Motors and Chrysler. So as a result Ford. Without a dime. Of government money. He is recovering. Their business. And showing some strength. They say is they will be solidly. Profitable. In 2011. Previously they said they were only breakeven in 20112 of their ahead of plan. They're run by a Mulally I'm sorry -- reminded did you know I don't I never met him in person I've talked to him on the on the year before but I I've I've followed him from his days of Boeing the guy is a very very good corporate manager. He can run just about anything. So here you have. A product that people are demanding. The sales are up and he's watching live the pennies at home in as a result they're doing well not a dime of federal money. I suspect there are some of you out there -- call this program in the past and said. You were going to only buy afford not to -- aura. Or Chrysler because of the facts of the government money involvement. I don't know if you did I don't know how much of Ford's businesses because people like their cards. As opposed to people one -- supports the company. I don't know but it's working whatever it is it's working combination of of this senator Nelson you wanna say while the governor was involved in helping Ford to an extent with the cash for -- program it did help them like Mulally said. To an extent. But it would remember the numbers and cash for drug program actually help the form auto makers Honda Toyota. More than anybody else so congratulations. First of all to Ford Motor Co. And it does make you wonder if the government spending is the answer to solving the economic problem. Then why did no government spending help for. Meantime over at CI AT financial. There are many many many lessons I think to take away from the CIT for those of you that don't know. He is a huge lenders have been in business 101. Years. They filed for bankruptcy protection over the weekend it wasn't wasn't really a surprise they've been in trouble. They've got more assets -- liabilities they just have a liquidity squeeze going on. Big government. The Bush Administration. Treasury Department Hank Paulson. -- CIT 2.3. Billion dollars. In taxpayer money late last year. They are the fifth. Largest bankruptcy. By assets 71 billion. In the bankruptcy filing they have about thirty billion dollars in debt. And they were able to you race 13 of that. So thirty and thirty million goes to 20000010. Billion gets a race right off the books. You know who lost on this. Two people. Number one the stock holders stockholders of both the common and the preferred shares got wiped out they get nothing. The bondholders. Agreed to a 30% discount. So they are gonna take for every dollar they're gonna get seventy cents on the dollar. The thing about this is this is where the government tried to bail this company out. And it was the same sort of thing that they were screaming about the automakers in Detroit though we can't let him go bankrupt because of legal -- Obama got reliable. All those collaborate all the jobs could be a lot dolls going to be a horrible all these businesses will. And and the CIT's though the small businesses will fail right but because look back this small businesses realize upon CIT for their financing. And I'm sitting undergo and he boogie man stories. Haven't turned out well I mean General Motors is close to lot of plants and laid off a lot of people. So. It did not help that the government shepherded death then. Chrysler even worse. CI eighteen the only people that are getting hurt in CI TR the stockholders. Which is the way it is supposed to work in the in this. Capitalistic society there were trying to hang on. So how -- How did this old how this how this happened."