More Ayn Rand/Ron Paul Nonsense

It seems many who would lock their neighbor out of the bomb shelter they presciently constructed are confusing what is fair with what the majority of the Senate, elected by the people, deemed necessary regarding the proposed taxpayer loans to and oversight of the Big 3.

No excuses need be made for recalcitrant labor or out-of-touch management, but prudent people fear the consequences of doing nothing without at least keeping the patient going in the hope that a meeting in the middle can mitigate what would otherwise be a scary outcome.

The Senate did not reject the bailout legislation. It never considered it really. In fact, it merely failed to garner the 60 votes out of 100, which, according to its rules, are needed to end debate and send the bill for a vote. A majority, 52, voted for this cloture. Thus, it could be argued that the administration in invoking TARP for help is carrying out the will of the people's elected representatives.

Surely, the posturing senators who voted against cloture knew this would be the outcome. So they enjoyed the chance to act like chapters from Profiles in Courage with no responsibility for a meltdown.

The market response seems appropriate.

Me and Miss Market -- We gotta thing goin' on

Did anyone seriously believe the United States would let the car makers go down because some posturing blowhards prevented cloture in the Senate? The stakes for the rest of the economy are far too high to let buffoons carry the day, regardless of where the blame lies (management, unions, legacy benefits, cheap Southern labor for the transplants, etc.).

Full disclosure: I own Ford shares, bought last month at $1.15. After last night's rump rebellion from the bloviators playing to the anti-union hillbillies back home (I am of hillfolk stock myself, so no angry "you think you're better than me" stuff), I admit I was ready to bail and preserve a short-term profit but held off from pressing the button when the administration unfolded the TARP to catch the falling Town Car this morning.

For the moment, greed trumped fear. My original reason for buying was supported -- I didn't believe that even the most rabid Ayn Rand freaks would release the hounds on what remained of the last limping female fox on the estate. Surely, I reasoned, the lord of the manor would want to keep her alive so that the species could repopulate and enable future hunts that would entertain his peers and keep enough commoners employed to hold the torch and pitchfork crowd to a minimum.

Ford (trading at $3.09, up $0.19 on the day as I write) is probably the safest (that is certainly a relative term) way to play the auto bailout. Its balance sheet is the strongest of the two publicly traded American car makers, and I take F at its word that it doesn't need the dough right away.

Who knows, but I still think Miss Market has a crush on me. At least today. Tomorrow I may be dealt a hand with no Greed trump cards courtesy of political events. And that last lady fox (no foxy lady she) may prove barren.