fed was shoveling money at everyone, foreign auto makers even as congress is howling about bailing out gm and chrysler. weird, matt thinks this. matt stumbles a bit on credulity when he says,
the Fed's massive purchases of securities in foreign automakers, including BMW, Volkswagen, Honda, Mitsubishi and Nissan? Or the nearly $5 billion in cheap credit the Fed extended to Toyota and Mitsubishi? Sure, those companies have factories and dealerships in the U.S. — but does it really make sense to give them free cash at the same time taxpayers were being asked to bail out Chrysler and GM? Seems a little crazy to fund the competition of the very automakers you're trying to rescue.let us all recall those heady and shout filled days of the auto bailout. fun, i know. the busting of the auto unions was on full throttle, republican senators and 'gressers hooping a battle cry against the last vestigial organ of once powerful organized labour: the american auto industry. happily, many of those same said republican senators and congressmen represented states and districts that host production plants of those very same, and blessedly non-unionized, "foreign automakers."
so, no matt, it ain't crazy for the Fed to do this. it does indeed look crazy, which is great. when people think that, they give up on the question of why.
but face it. they all want to bust the unions. all of them. it's the forefront and fashion these days, and even the Fed will take a shy stroll down the cat walk.