Poor GM crying the blues along with Ford and Chrysler.Perhaps if they showed a little foresight and invested in low cost energy efficient cars and trucks they wouldn’t be so pitifully behind.They’ve had the technology.They just can’t figure how to rip off the consumer to the max yet by utilizing it.
I had a very bad year myself with repairs and breakage.Think the government will give me a bailout?

This is a first, I guess, me replying in a political forum. But this isn’t really about politics, even if subsequent replies drift that way. It’s more about business and how to properly spend money, I guess.

To your question, I think taxpayer money, if spent on this at all, would be best used to help any of the so-called Big Three come OUT of Chapter 11. I think Chapter 11 would be the best thing for them, ensuring they’d get leaner and change directions more quickly. Throwing good money at them with no guarantees would be insane. I’ll grant them they’ve made some headway in the past year or so, but it’s nowhere near what’s needed. And most of their problems — outside the current economic climate — is indeed of their own making.

Yes, there would be fallout and more jobs lost. But the fact is that oftentimes treatment is painful.

Big 3 bailout - absolutely in one form or another. The economy cannot take another hit of the magnitude of auto industry failure. To be the only country in the world not to help out local industry would also be very republican. A pre-structured Chapter 11 with minimal job loss would seem appropriate. Paulson has taken care of Wall Street with little success lets not let him ruin the middle class as well.

Jim,
  Who but the middle class is paying for all these bailouts? If these giants get back on their feet are we going to share in the profit as equally as we share in the bailouts? Who is going to determine which industries are “vital” to save or are we just going to write a blank check to reward failure?

John
The same people that determined it was okay to bail out Wall Street but not every single firm. There is purpose behind the madness.
Chrysler bail out last decade - the country made money on the deal. Set the conditions for the People and the People win even if it takes 30 years. That is of course against Republican ideology of Banana Republicanism. Corporations first people not at all.
Bail out is a fear factor phrase. It is a deal between the people and the corporatti. Negotiate properly and everyone wins. Worshipers of Failure hate that idea.

Jim

Yes, the purpose behind the bailout is payback to the UAW voting block that supports the Democrats.

I’m out. Carry on. 

I think you are right, Bill.  Chapter 11 is the way to go.  They already have bail out money to help them disign more fuel efficient cars.  Chapter 11 would let them do radical things to inprove their fiscal lot.

It amazes me at how these people like to make this so dramatic.
Man-made global warming will kill everyone in 10 years!!!
We must have a bailout of the housing market or business as we know it will fail!!!
We must have a bailout of the auto industry or the American economy will fail!!!

It is interested to note that:
1. global temperature is not rising with the increase of CO2.
2. the bailout money for the housing market still hasn’t been spent yet and we are still doing business in this country.

I bet if we let the auto industry go to Chapter 11, without any money from the bailout, the American economy will continue.

How about getting the bailout fund from the bonuses and salaries of the CEO’s of those companies instead of from the taxpayers.Since they are responsible for the lousy shape the companies are in they should be the ones to fix things.

Seems the auto guys are left high and dry. Boo hoo.

I’m not sure why the Republican plan for taking the $25Billion that was already approved and signed by Bush to help the auto guys retool or do better R&D or whatever to make ‘greener’ cars was rejected by the Dems.

I know, it was a Republican plan, that’s why. I guess compromise only works when its the Republicans compromising to the Dems and not the other way around.

Kaipo Simpson - 19 November 2008 01:03 PM

Yes, the purpose behind the bailout is payback to the UAW voting block that supports the Democrats.

Kaipo as usual a very silly remark. But as long as your warmed up to it maybe you can explain the reason for “bailing out” Wall Street” and refusing to “bail out” Main Street?? I am sure you thoughts will be most educational.

I think you totally fail to recognise the economic disaster that has hit the US and carried forward globally.

Jim

John Campbell - 19 November 2008 03:10 PM

I think you are right, Bill.  Chapter 11 is the way to go.  They already have bail out money to help them disign more fuel efficient cars.  Chapter 11 would let them do radical things to inprove their fiscal lot.

John C
I tend to disagree. Simply declaring Chapter 11 will put the entire industry in ruins for 12 - 18 months. Thats nearly 4 million affected jobs.

The funds are not there for short term loans. Congress approved 25 billion for technology and research and re-tooling. Loans are a different subject.

If the Treasury gets off it’s butt and cuts a tough deal of pre-planed Chapter 11 you can be in and out in less than a week and maybe short term only loose 20% of the jobs. Remember it is the tax payers/consumer that pick up Chapter 11 bills and Health Insurance losses.

Main components of restructer are included in Chaper 11 and that is why it will or could be a very useful instrument but not as a sledge hammer.

Jim

Just caught a news report that GMAC wants to re-register as a bank. Then they get bail out money ..... This is a Treasury con-job.
Party before country - business as usual.

Jim Menzie - 20 November 2008 08:26 AM

Kaipo Simpson - 19 November 2008 01:03 PM

Yes, the purpose behind the bailout is payback to the UAW voting block that supports the Democrats.

Kaipo as usual a very silly remark. But as long as your warmed up to it maybe you can explain the reason for “bailing out” Wall Street” and refusing to “bail out” Main Street?? I am sure you thoughts will be most educational.

I think you totally fail to recognise the economic disaster that has hit the US and carried forward globally.

Jim

I don’t approve of the bail out of wall street either. Especially the way all the money is under the control of one man.

Jim Menzie - 20 November 2008 08:37 AM

John Campbell - 19 November 2008 03:10 PM

Remember it is the tax payers/consumer that pick up Chapter 11 bills and Health Insurance losses.

Jim

And the tax payer/consumer picks up the tab of the bail out, too. So…