Greg Newton, at NakedShorts, writes about the possible GM $5B loan.
Bait-and-switch obviousness shock
NakedShorts’ Obviousness Rule rule states that, even if things are obvious, they are not officially true until some official writes for, or talks to, an official news organization to tell everybody something that everybody already knows, but doesn’t dare say.
So, the payoff for two generations of indescribably incompetent management, with a salving back-hander for Stephen Feinberg & His Three-Headed Friend.
The US Department of Energy is working to release $5 billion in loans to General Motors Corp, according to a person familiar with the matter, a move that could help ease the way for the auto maker’s discussed merger with Chrysler LLC…
…The $5 billion would come from the pool of $25 billion in low-interest loans…aimed at helping Detroit retool plants to meet new fuel-efficiency standards. [Emphasis added]
Stunning. Especially since, under the calm and steady hand of Treasury secretary Hank Paulson, the Emergency Economic Stabilization Act of 2008 has already morphed from “getting money to banks so they can start lending” to “getting money to banks so they can start buying each other, thereby generating untold billions in investment banking fees for the Friends of Hank.”
In a related development, Weapons of Mass Destruction have not been found in Iraq.
Source:
US may give GM billions in loans
by Deborah Solomon and Stephen Power, The Wall Street Journal Oct. 28 2008.
