AutoMaker Loans .. Mixed Opinion
Posted November 19th, 2008 by nomad943
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I just read through the morning mail and included among them was the CFL action alert to oppose the automaker bailout.
I have mixed opinion.
I understand clearly why bailouts of failing business are bad.
But isnt the case now complicated?
700 Billion is already getting spent doing just that, bailing out failures.
So if it is now the business of the government to pick and choose who fails and who doesnt, as it seems to be doing, then why not toss the automakers a few crumbs from the feast?
I mean of 700 Billion, the 25 Billion they are talking about is a small fraction, isnt it? And the automakers are responsible for somewhere between 2 and 4 million people having jobs and producing more than they would wandering the streets.
I have also read that if-when the automakers fail, they will just dump their pension liability onto the fed "guarentee", sticking the taxpayer with an even bigger tab anyhow.
On purely ideological grounds it is easy to oppose this bailout of automakers.
But when considering the entire picture, including all the perverse government invasions into the marketplace that are already engrained into law ... its not so simple.
Why save all of our "voluntary donations" for Mr CashCarry and the other operators from Goldman Sachs?
Doesnt blue collar industry, that which actualy makes real things, deserve equal consideration ... all else being equal?
Hmmm ...
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No bailouts....Period!
This is the same thing as drawing a line in the sand. The reason why we are in this situation now is because we won't let anyone fail. It's time we start learning from the lessons of history and allow poorly managed companies to go bankrupt. Let the competent companies come in and take them over.
Follow this out logically. If the the big 3 automakers have been poorly managed and burdened by the monopoly of the UAW union for 25+ years. They have been outpaced by there foreign counterparts and over regulated by the government. Given today's economic environment and that this is the 2nd inning in a 9 inning game. Where are the buyers of these cars going to come from? The consumer is hurting and can't afford new vehicles, especially when they lose there jobs over the next 18 months. The management stays the same, the union contracts stay the same and the business model stays the same. It's time to realize that the Big 3 have to fail in order to actually become a player in the market again.
Stand firm on NO bailouts. Trust me, in the next couple of years all the money will be gone and most people will be kicking themselves for bailing out an industry that is inherently broken. It's time to stop throwing good money after bad.
No Bailouts
but ... the thing that really makes me sick is that the big financials were thrown $700 billion (plus many billions more) ... and then the automakers denied $25 billion. To me, that is so blatant ... rip off the taxpayers to give to the big boys, forget about the mainstreet workers and that ripple affect. Guys, this is all so sick. NO BAILOUTS. And if we keep bailing, where will it ever stop?
How can your opinion be mixed on this?
I'm pleased to see some people in the mainstream media and Congress show some backbone and come out against the bailout of the automakers. I was watching CNN last night, no less, and they were not only questioning the concept, one of the female commentators was editorializing against an automaker bailout with an almost 'Olberman-esque' display of attitude.
If a female commentator on CNN can get it, how can we possibly confuse the issue?
PS-Glad to hear the C4L did something useful and informative.
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Are You Okay With The Other General ?
So while General Motors is left to die, General Electric is reclassified as a bank and can draw more money than the automakers were asking for without there even being a formal application process.
On one hand the media shows us coordinated applause and on the other hand they show us coordinated disapproval? This makes you happy? Doesnt it make you feel manipulated? Who decides who gets what? If anyone gets anything we need to ask why them and not them. That is the real story. What "services" are being performed by one and not the other that gets one the red carpet treatment and the other booted onto the median strip.
They need to die
and that is the honest truth.
Ford and GM both have great efficient cars that would sell like hotcakes here in the U.S. But instead they have "business agreements" that don't allow them to. GM is opening manufacturing facilities in Russia of all places, and probably will be selling very efficient cars that will sell.
The companies are so friggin huge now that they can't change to meet our needs, and are unwilling to make necessary changes...where I come from that means your business is going to fail.
The truth is, we still need cars, and there are hundreds of small companies that will spring up to fill the gap, and those companies will probably start combining to make a new "big 3" or "big 8' or whatever the case may be.
It is just a drop in the bucket compared to the painful sand filled ass pounding the American people are taking with the vampire banking bailout, but it is still a bucket that shouldn't be filled.
I can't wait to see all these bastard hang. In the end, EVERYTHING will be known.
That is a tough one
I, like you, have mixed feelings about this.
IF the government "Loans" them the mony
It should be written just like a bank loan with their assets being the guarantee of the loan, with about a 10% interest rate. The tax payer is paid back before any bonuses and stockholders get their "cut". The chief executives take a 25-50% pay cut till loan is paid.