GM (GM) and Ford (F) shares are both up over 16% on news that preliminary bailout is almost a certainty. Both Barney Frank and The White House say an agreement, to reallocate $15 billion from a $25 billion loan approved in September is close at hand. The automakers will need more early next year, but that’s fine, because as AIG (AIG) taught them, once the government has chips in the pot, it will never fold its hand.
The word of the day: oversight. You know, because the oversight, transparency fetish worked so well with the TARP.
Question for you: Why do you think there was was there not nearly this level of debate or scrutiny when that original $25 billion loan earmarked for retooling factories was approved? Is saving the automakers from bankruptcy less obvious than ensuring that they make green cars?