Big 3 may fail..

[Pauls' Revere]

Looks like the big three automakers might fail. But that Obama will use the bailout money intended for financials for the big 3 instead. What a load this is!

http://biz.yahoo.com/ap/081114/meltdown_autos.html

From article:
Democrats in the lame-duck Congress are pressing for a bailout of Detroit's Big Three automakers with money taken from the $700 billion Wall Street rescue. But President George W. Bush and many Republicans have come out against the idea, arguing that the financial rescue package was not intended for such uses, and that a bailout would reward poor management and lead other industries to demand government handouts, too.

GM alone burns cash at a rate of 3.1 million dollars a minute!

they are talking the possibility of a depression and a lose of 3 million jobs.

Personally, I think they need to fail (I hope they do) and should have been making a product people could buy a long time ago. Seems we learned nothing since the 1974 oil embargo. Besides this $$$ was intended for other purposes not for a UAW bailout.

 

[WRellim]

GM and Chrysler are both "conglomerations" that were originally built up from dozens of other auto manufacturers.

I've NEVER understood the "too big to fail" argument. It makes no sense -- it's like trying to preserve the largest trees in a forest in perpetuity (even if they are completely hollow and rotten on the inside). And as every forester MUST know, unless the largest trees eventually die their "foliage" chokes off the light from the saplings below. In dying, falling, and eventually decomposing the former "giants" provide the basis for a whole new generation of sapling trees, and a reinvigorated forest.

The same is true of large corporations. If they were allowed to fail at the end of their "natural" life -- then in their dying, they would leave in their wake a tremendous amount of resources in their (now cheap) real estate, excess machinery and inventory, and labor forces -- which can then much more easily be utilized by smaller "upstart" groups to buy them at dirt cheap prices and to create new companies around the nation (and not only in the automotive industry).

THAT is exactly what happened with the DotCom crash -- a LOT of that expensive computer server equipment (not to mention the office chairs, desks, etc) was sold of at "fire-sale" prices, much of which found it's way into the hands of NEW entrepreneurs who then were able to put it to BETTER use and create a resurgent IT industry... and we are all better off with the raft of new companies, the Skypes, Googles, Craigslists, and YouTubes that resultes, than we were with the Pets.com and Concrete.com baloney.

 

[muh_roads]

In the grand scheme of things, bailout of the auto makers is so pointless. In terms of people employed it pales in comparison to many other industries. Health care completely dominates by 100 fold.

Let them fail. It's not like the manufacturing plants will disappear. They'll just be under new management.

You have to allow for failure, otherwise we are not a capitalist society.

 

[Time for Change]

The big 3 failed years ago, it is just becoming obvious today.

They build crap, the people get suckered into buying it on the promise of being a great vehicle and find out they bought engineered-to-break garbage.
The big 3 follow that with "we have improved, the vehicles are much better now"
People fall for it and find otherwise down the road...same old crap.
Again they claim improvements "we mean it this time, the vehicles are really better now"
But NO they are the same old poorly designed "Initial Quality" crap.

People are simply reacting to being screwed over so many times and saying no to the garbage put out by the big 3, and buying better vehicles.

It is bad management, bad design and rewards for failures.

It is no surprise, unless you are an employee of the big 3 or a clueless government official caving in to the special interests of UAW / big 3.

How they can be so ignorant is beyond me.

 

[Dr.3D]

After they are gone, then it will be the health insurance companies crying about the loss of business they formerly had from the big three. Where will it end?

 

[smithtg]

Looks like the big three automakers might fail. But that Obama will use the bailout money intended for financials for the big 3 instead. What a load this is!

http://biz.yahoo.com/ap/081114/meltdown_autos.html

From article:
Democrats in the lame-duck Congress are pressing for a bailout of Detroit's Big Three automakers with money taken from the $700 billion Wall Street rescue. But President George W. Bush and many Republicans have come out against the idea, arguing that the financial rescue package was not intended for such uses, and that a bailout would reward poor management and lead other industries to demand government handouts, too.

GM alone burns cash at a rate of 3.1 million dollars a minute!

they are talking the possibility of a depression and a lose of 3 million jobs.

Personally, I think they need to fail (I hope they do) and should have been making a product people could buy a long time ago. Seems we learned nothing since the 1974 oil embargo. Besides this $$$ was intended for other purposes not for a UAW bailout.

I personally think Chap 11 will help the automakers. I mean they get to renegociate their debt, probably get rid of all the unions, retool and come out better companies if they can find exit lending in a few years

 

[torchbearer]

The big 3 failed years ago, it is just becoming obvious today.

They build crap, the people get suckered into buying it on the promise of being a great vehicle and find out they bought engineered-to-break garbage.
The big 3 follow that with "we have improved, the vehicles are much better now"
People fall for it and find otherwise down the road...same old crap.
Again they claim improvements "we mean it this time, the vehicles are really better now"
But NO they are the same old poorly designed "Initial Quality" crap.

People are simply reacting to being screwed over so many times and saying no to the garbage put out by the big 3, and buying better vehicles.

It is bad management, bad design and rewards for failures.

It is no surprise, unless you are an employee of the big 3 or a clueless government official caving in to the special interests of UAW / big 3.

How they can be so ignorant is beyond me.

All the general motors vehicles we run on the farm last us a good 15 years before we get a new one. Most people don't properly maintain their vehicles.

 

[angelatc]

All the general motors vehicles we run on the farm last us a good 15 years before we get a new one. Most people don't properly maintain their vehicles.

Most people trade them in after 3 years simply because they like new cars.

 

[Cowlesy]

Watching everyone line up with their hand out for a piece of gov't pie.

It's like watching a slow motion train-wreck.

 

[coyote_sprit]

What the hell is fail? I've never heard this word. I always thought that businesses either did really good or got bailed out. So WTF is fail?

 

[rockjoa]

I'm not so sure they are going to get bailed out. Too much time has passed with no action. We are out of silver bullets and risking severe cascade failure of the economy and have a huge negative effect on everything else.

 

[hillertexas]

This has everything to do with the unions...a crucial voting block for Obama/liberals.

They are cringing at the thought of losing all of those union votes and that control over the union people, in one big swoop.

This has nothing to do with cars, systemic risk, or saving jobs.

This has everything to do with the unions.

If they fail, the Obama agenda will take a big hit IMO. Obama needs the unions to further his agenda. So, IMHO, "burn, baby, burn!"

 

[Michigan11]

I have a f-150 06' never had any problems with it. My last truck f-250 02' had well over 100,000 miles no problems ever. The truck before that was a f-150 99' I think and I sold that with over 220,000 miles on it and again no problems. Before that a ranger 93' maybe and I sold that with 150,000 miles on it and no problems. My brother has always bought a taurus, he runs them to about 180,000 miles and then sells them and buys another - again no problems.

Maintenance is a huge key: I get a oil change every 5,000 (synthetic oil), trans flush every 30,000, change air filters, and I'm good to go.

A friend of mine has a fusion and loves it, no problems 70,000 miles later. Other people I know own the edge, expedition, lincoln mkx, f-150's, again never heard of any problems. Ever.

An ex-girlfriend I still talk to has a 03' escape and no problems. Another ex-girlfriend I still talk to has owned a Chevy Impalla for the last 6 years and no problems.

BTW, all I am saying is that there is alot of bashing of domestic vehicles but I and others I know don't have any problems with our 'domestic' vehicles.

 

[moostraks]

This has everything to do with the unions...a crucial voting block for Obama/liberals.

They are cringing at the thought of losing all of those union votes and that control over the union people, in one big swoop.

This has nothing to do with cars, systemic risk, or saving jobs.

This has everything to do with the unions.

If they fail, the Obama agenda will take a big hit IMO. Obama needs the unions to further his agenda. So, IMHO, "burn, baby, burn!"

Stupid theory...we could have used the unions support in the primaries. The people up here where I am are mostly union and I get great response from my still very Ron Paul van. If we are as economically savvy as we like to claim maybe we should try to come up with a more creative theory on saving them than cheering on tons of people who will find themselves receiving government services and costing more in the long run. GM said they are willing to consider anything to save the business, maybe someone should run with that...

 

[fedup100]

This has everything to do with busting the unions and the further destruction of the middle class, not to mention we will soon have no manufacturing base to even provide for ourselves in war or starvation.

For those who continually scream, "we can take it back peacefully, you are either stupid or part of the plan to keep the good guys held back while they finish us off.

Folks, they don't need marshal law, they are moving around very nicely in broad daylight while they rob, steal and destroy our nation and our future right before our very eye's. The invasion is going nicely and the new global President who has no loyalty to you or your country was part of the plan.

Just sit quietly now, don't do anything stupid like fighting back, they are just about finished and the last brick will be placed in the last hole of the tomb very soon now, About 10 more bricks before the light and air will begin to fade quickly. Hold your children tightly and tell them not to be afraid, you will protect them.

 

[lodge939]

This has everything to do with the unions...a crucial voting block for Obama/liberals.

They are cringing at the thought of losing all of those union votes and that control over the union people, in one big swoop.

This has nothing to do with cars, systemic risk, or saving jobs.

This has everything to do with the unions.

If they fail, the Obama agenda will take a big hit IMO. Obama needs the unions to further his agenda. So, IMHO, "burn, baby, burn!"

Word. It's just some quid pro quo for the unions. Plus, he needs their manufacturing infrastructure to build his electric car utopia.

 

[angelatc]

BTW, all I am saying is that there is alot of bashing of domestic vehicles but I and others I know don't have any problems with our 'domestic' vehicles.

I have a '93 Escort that just died. The transmission. Never had any major repairs.

I have a '94 E150 van that is still running fine. I do need some front end work, but it's over 150,000 miles now.

 

[tod evans]

`56 chevrolet panel truck over 700,000, still driven daily............do that in your jap car!

 

[Dr.3D]

1974 M151A2 military truck with an ordinance engine (built by Ford).... still running strong.

 

[Danke]

This has everything to do with busting the unions and the further destruction of the middle class, not to mention we will soon have no manufacturing base to even provide for ourselves in war or starvation.

For those who continually scream, "we can take it back peacefully, you are either stupid or part of the plan to keep the good guys held back while they finish us off.

Folks, they don't need marshal law, they are moving around very nicely in broad daylight while they rob, steal and destroy our nation and our future right before our very eye's. The invasion is going nicely and the new global President who has no loyalty to you or your country was part of the plan.

Just sit quietly now, don't do anything stupid like fighting back, they are just about finished and the last brick will be placed in the last hole of the tomb very soon now, About 10 more bricks before the light and air will begin to fade quickly. Hold your children tightly and tell them not to be afraid, you will protect them.

Yep. Look at management salaries compared to workers over the years. Workers are going down relative to inflation, but management is skyrocketing The percentage differences are mind boggling. We are wiping out the middle class.



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