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The · Psychohistorian

The free market strikes again

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Today's big news on U.S. auto makers is that Ford, which refused Federal bailout funds, today retired $9,900 million in debt - 38% of their outstanding debt - for $2,400 million in cash plus about a 20% equity stake. Evidently capital availability is not as bad as it has been made out to be.

Meanwhile, GM, which borrowed $13,000 million from the government, still needs to borrow $16,000 million more, and is talking about bankruptcy anyway. One of the problems there seems to be that administration pressure to go harder on some groups and softer on others is interfering with a deal.

Just a little lesson about government interference with the economy.

Links, first on Ford, then on GM:
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