Market action re Auto Industry
I decided to sell my stock in Ford given the Republican use of a filibuster of the Bill to provide a bridge loan to the Auto Industry. I sold my remaining shares at $3.26. I recommend others do the same. as you can and will be able to buy them back cheaper. Many think this only has implications for the Auto Industry. They are incorrect in that assumption. It will also affect the Technology sector as many autos today are equipped with GPS, TV's, phones, computers and other technology based features. It also affects the equipment manufactures that make equipment to test your car and do diagnostics when there are problems with it. This filibuster is ill conceived and can plunge us back to the bottom range in the Dow, S&P500 and the Nasdaq. Listen to CNBC commentators arguing over this bailout.
Buy Ultra Short ETF funds like SDS, currently at $83.65/share
Buy Ultra Short ETF funds like SDS, currently at $83.65/share
Labels: Auto Industry, Ford Motor Co., Republican filibuster, stocks
posted by Charles Amico at 9:17 AM
2 Comments:
Of the Big 3 auto companies, only Ford has stated that it doesn't need a bridge loan; the Ford CEO stated on a PBS (Lehrer Newshour) interview a couple days ago that Ford supported the bridge loan for Chrysler and GM, in part because a collapse of one or both would be problematic for Ford, owing to the possible ripple effect of causing the failure of key suppliers (which tend to be vendors for all three companies). What Ford was asking for wasn't a bridge loan, but instead just a line of credit, in the event that, down the road, they had a capital requirement that they couldn't otherwise meet. But the Ford CEO emphasized repeatedly that Ford was not in immediate danger and had sufficient cash and credit reserves to meet it's short and long term business plan. I hope that he's correct, because my father is a Ford retiree, who holds a fair amount of Ford stock.
I can't argue with the logic and your reasoning Larry. WE both have children that are going to be strapped financially because of the Greed on Wall Street and some on Main Street as well. Thanks for the comment and Happy Holidays.
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