Maybe the market is still working!
By Bob | July 23, 2010
News today from Detroit: the market has rewarded Ford for not being part of the bailout/stimulus fiasco!
Free market economists like to believe the following:
1) The market always self-corrects.
2) Good companies will be rewarded.
3) Bad companies will be punished.
4) Hands off, Uncle Sam!
Recent history, however has shown that this is not always the case. Ford was not part of the bailout and has now made 5 straight quarterly profits. If GM reports a profit, it will be the second quarter in a row and that's with billions of taxpayer dollars being tossed their way! Why the difference? Here are 5 reasons why Ford is being successful now:
1) Attention to customer desires.
2) Careful debt management.
3) Good leadership from CEO Alan Mulally.
4) Rejection of taxpayer dollars.
5) The market worked.
And kudos to my hairdresser friend who bought Ford shortly after the government bought GM. She made a tidy return on her investment.