Jim Chanos: We're Still Short Ford, And The Entire Auto Industry Is A Mess

Jim Chanos spoke to CNBC this morning about the state of the markets and Obama’s moves to bolster the economy.

  • 1:30 The problem I, and many hedge fund managers, had with the bailout was that individuals were rewarded who shouldn’t have been, like bank managers and automobile CEOs.
  • 2:15 The one mistake this administration has held onto is letting investors walk away in the bailouts.
  • 3:30 Misleading to say taxpayer is going to make money on the bailouts, not knowing when we started putting money into these companies.
  • 4:00 We are rewarding repeated failed mistakes, and a company like Ford, which did not take a bailout, is now at a disadvantage competitively to GM and Chrysler.
  • 5:00 A million people would not be unemployed if GM went bankrupt, they would have kept making cars throughout the bankruptcy.
  • 5:40 There is too much capacity in the global auto industry, and we’re short Ford.

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