The Conservative Cave
Current Events => Politics => Topic started by: TVDOC on December 05, 2010, 02:11:06 PM
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http://jalopnik.com/5704575/
In the depths of the financial collapse, the U.S. Federal Reserve pumped $3.3 trillion into keeping credit moving through the economy. It eventually lent $57.9 billion to the auto industry — including $26.8 billion to Ford, Toyota and BMW.
The Fed on Wednesday was forced to reveal the identity of the companies it aided during the crisis, after contending to Congress that keeping their identities and the details of such lending secret was essential. Much of Wall Street, and corporate giants such as General Electric, Harley Davidson and McDonald's, took advantage of the Fed's help. We've done the math on how the Fed propped up the auto industry.
While Chrysler and General Motors had to go to Congress to beg for cash in 2008, every other automaker's finance arm was having trouble as well. Typically, once they lend money to a buyer, they sell the loan, get the cash upfront, then pump the proceeds back into the business. They also take out short-term loans called commercial paper that keeps the day-to-day business afloat. The crash cut the circuit, raising the chances the automakers couldn't make loans to buyers and keep selling new vehicles.
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Balance at link......
doc
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Good Lord. And to think that Ford was strutting around saying that they took no bailout money. :hammer:
Granted, the money went to Ford Credit, but it's still money in Ford's pocket.
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This was the lending agencies of the car companies, correct? That was totally separate from what Chrysler and GM received in bailouts to the manufacturing arms themselves.
The way I understand it is that all the credit branches of the companies needed the loans, but they have paid them back.
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**shaking my head**
Wow. I don't like the sounds of this at all. :banghead:
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How many small businesses went down when their lines of credit were cut during the crisis?
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This was the lending agencies of the car companies, correct? That was totally separate from what Chrysler and GM received in bailouts to the manufacturing arms themselves.
The way I understand it is that all the credit branches of the companies needed the loans, but they have paid them back.
Actually, the retail and wholesale credit divisions of auto manufacturers are included in their overall P & L......they are not free-standing entities. Bailing out the manufacturers credit operation is just another subsidy to the manufacturer itself.
Taking Ford as an example, were the company's manufacturing operations generating sufficient revenue, the retail credit operation would have more than adequate funds available to provide the means to finance their sales.
doc
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Correct, and one aspect of the GM bailout not mentioned is that GMAC was split off prior to the bailouts and are still substantially a subsidiary of .gov
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Eh, I wouldn't buy a car from any of those companies anyway.
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Correct, and one aspect of the GM bailout not mentioned is that GMAC was split off prior to the bailouts and are still substantially a subsidiary of .gov
Ally bank is basically a government bank? Surprise, surprise.
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Ally bank is basically a government bank? Surprise, surprise.
Ally Bank is still receiving government funds to keep it afloat.
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Good Lord. And to think that Ford was strutting around saying that they took no bailout money. :hammer:
Granted, the money went to Ford Credit, but it's still money in Ford's pocket.
Apparently every single automaker was bailed out too including toyota and hondaThe Fed also lent $13 billion to investors who bought bonds backed by loans to new car buyers from automakers and banks. The Fed made clear that while investors got the loans, the move was meant to keep the lenders in business; the credit arms of Ford, Chrysler, Nissan, Volkswagen, Honda and Hyundai all benefited directly.
:o Woah! So this went further than anyone thought at first! Jesus!
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Eh, I wouldn't buy a car from any of those companies anyway.
Then apparently you won't be buying a car at all...they all seem to have been bailed out either directly or indirectly including Honda and Toyota!
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Ally Bank is still receiving government funds to keep it afloat.
Guess those kids aren't getting their ponies after all, either.
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Guess those kids aren't getting their ponies after all, either.
Define ponies. The executive team at Ally is still in place and getting quite a hefty paycheck for being essentially government employees of an institution they themselves bankrupted.
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Define ponies. The executive team at Ally is still in place and getting quite a hefty paycheck for being essentially government employees of an institution they themselves bankrupted.
The commercials--it was a joke.
[youtube=425,350]http://www.youtube.com/watch?v=7qb0vquRcys[/youtube]
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The commercials--it was a joke.
[youtube=425,350]http://www.youtube.com/watch?v=7qb0vquRcys[/youtube]
LOL
That one is almost as funny as the Barclays ads touting their ability to whether the financial storm....by having the British taxpayer save them from their losses...of course that is not in the ad.
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Then apparently you won't be buying a car at all...they all seem to have been bailed out either directly or indirectly including Honda and Toyota!
I have a 10 year old Jaguar with a loan through my bank. I don't believe Jaguar took a bailout for the United States government....
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I have a 10 year old Jaguar with a loan through my bank. I don't believe Jaguar took a bailout for the United States government....
A Jaguar is a nice Ford.
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A Jaguar is a nice Ford.
Yep, during that time frame. Jag is now owned by Tata, an Indian corp.
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I have a 10 year old Jaguar with a loan through my bank. I don't believe Jaguar took a bailout for the United States government....
Ford's Premier Automotive Group was dismantled and sold prior to the bailout legislation (with the sole exception of Volvo which was sold earlier this year).
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Yep, during that time frame. Jag is now owned by Tata, an Indian corp.
I was not aware of that. India owns Jaguar. The irony is rich there.
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Good Lord. And to think that Ford was strutting around saying that they took no bailout money. :hammer:
Granted, the money went to Ford Credit, but it's still money in Ford's pocket.
I have to admit, this is a disillusioning revelation about Ford. BUT--see last line of article--it's all been repaid.
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I have to admit, this is a disillusioning revelation about Ford. BUT--see last line of article--it's all been repaid.
Like GM "repaid" all their debt to the government?
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Like GM "repaid" all their debt to the government?
There is no independent audit on the numbers so you are just going to have to trust the US Treasury and the Federal Reserve :rotf:
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Like GM "repaid" all their debt to the government?
Well then--but if I shouldn't believe the last line of the article, why should I even believe the first?
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A Jaguar is a nice Ford.
And on that theory, a Mazda is a Ford.
http://www.autorivals.net/hatchbacks/20112vs2011fiesta/20112vs2011fiesta.htm
What's the point?
My car is 10x nicer than my parent's Lincoln LS and it's the "SAME" car.
Edited to add in link
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How many small businesses went down when their lines of credit were cut during the crisis?
That's exactly what happened to the company that I was working for. They cut the company's line of credit in half from 1 million, to half a million.
Between paying for equipment, people's salaries, the building, and other necessities, it was doomed and finally folded in October of last year. (Damn shame too. GREAT company to work for.)
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A Jaguar is a nice Ford.
Minor threadjack, but it is a crime that should be punishable by a long prison term......what Ford did to arguably the finest piece of automotive styling in the latter half of the twentieth century.
They managed with great aplomb to take a timeless classic design.....and turn it into an expensive Taurus......bleh!!
doc