Tuesday, December 02, 2008

Thinking Bigger on US Autos

By William John Cox
December 2, 2008

When the Big Three CEOs previously descended on Washington in their fancy corporate jets with inflated egos and high hopes for a juicy piece of the government's $8.6 trillion corporate welfare pie, they were sent home hungry to do their homework and to write an essay about how they plan to spend bailout funds.

Read on.

1 comment:

chmoore said...

Not so fast. Though a takeover is an option worth considering, it's not as cheap as the Market Cap value, which is only the value of all shares.

A real world takeover involves detailed calculations of all assets, liabilities and also debts. Actually taking over GM and/or Ford and Chrysler would likely cost several times more than the Market Cap.

I would like to see the Big 3 stay around as much as anyone. But let's see the cost with our eyes open, and not kid ourselves.