Ford’s (F) Strange Rally

By Douglas A. McIntyre Updated Apr 27, 9:39PM EDT · Published Nov 28, 10:52AM EST

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95129c Ford (F) made another perverse move up today rising as much as 22% to $2.64.

At this juncture, even if the federal govenment does extend loans to the US car companies the firms will have to go through some form of bankruptcy, The only interests that may be served in that process will be those of labor and suppliers in a hope of minimizing the effects on the econonomy.

While some of the operating savings may come from pulling out some UAW benefits, the most probably target of breaking the car companies apart and putting them back together will be those financial institutions and individuals who hold the tens of billions of debt.

If debt is taking a haircut, the common shareholders are certainly going to zero. A bailout may be good for Detroit, but a rally in the stocks is simply an example of the greater fool theory at work.

Douglas A. McIntyre

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.