Save the big Three?

The more I read of this auto bailout the more I don’t like it because of the terms. The government wants an insider to over see management. They also want to replace the current CEO’s.

Our government is completely incapable of running itself but now they think they have the experience to an auto manufacturing plant? KISS MY !

A bailout would violate international trade laws? Tough. Let them suffer with the bailout or suffer with the collapse.

At this point I truly hope and wish they’d misspend the money elsewhere and the big 3 go broke. Sure I’d be out of a job but I’ll just draw off everybody else.

Quote:

---

I have Satelite radio and listen to a ton of this stuff during the day. Very enlightening.

---

That right there shows our different levels of intelligence. I get my education from listening to Stern. I think listening to the smartest, hottest woman contest yesterday is way more valuable than anything I would get from Bloomberg.

and me.. I spend to much time reading here!.. lol.. this isnt the best place to find facts.. the thing is you just have to decifer facts from opinions… without references its all just opinion… I didnt know it makes me an unusual American to not take things at face value and to think for myself… I dont think solutions should be left to someone else to figure out and Ive learned to keep active and voice MY Opinion (and then back it with what facts I can find)….. oh well enough chest beating… I spend at least 2-3 hours a day reading about whats going on in the world… as for this bailout… gee setting up Goverment to directly oversee business.. what a great idea… all politician know is how to get reelected.. and its getting so corrupt that a lot of them only know how to go to prison…. I think goverment workers would do ok IF politicians stayed the H@ll away from them… but since that never happens it seems any goverment position is subject to politics.. and politicians are too often corrupt.. and even if not corrupt they are looking to get reelected… and when they are looking to get reelected then bad news is more than just an inconveniece.. bad news must be buried at all costs… personally I STILL dont understand those who blindly support left, right or even middle.. when it comes to politicians they are about as reliable as fog…. whats the difference between left wing fog or right wing fog? it all just blows away in the wind and dissappears when the light of reality hits it….
those are my opinions and Im sticking with em….

Quote:

---

Say Ratt, since Buzz and the rest of us Americans are so lazy to research for themselves, what information have you found showing that the foreign guys are in trouble?

---

Dude use your search function on your internet browser. It isn’t that hard.

Quote:

---

I think the point is ALL companies are having a hard time but it is the Big 3 claiming that they will go bankrupt without a handout while the other companies are not doing that.

---

Ok so are all the manufacturers in trouble or not? First you question my statements about the imports then you say ALL companies are in trouble, in the same post! Of course the US makers are in trouble compounded by the union agreements. But you do understand how that works right? (Whole another topic but you should really research it!) Don’t think for a second the imports are all glossy and selling as normal. I don’t know why it is so hard for you to understand BANKS STOPPED LENDING causing a collapse in anything that has to be financed!

By the way Toyota, the brand people think is invincible, has seen a sales plummet of 34% while the Lexus counterpart is down 35% and they are suspending production at several North American factories. You do the math!

I do agree with you 100% that the union contracts need to go. While they were not the cause of the collapse they are certainly the straw that broke the camels back.

Quote:

---

Oh, and get over Freddie and Fanny. I think most informed people know what damage that caused yet the election proved that people don’t care.

---

Yet another example of LAZY Americans! Get over it? Come on. Don’t sit here and whine about the “handout” (Webster will easily show the difference between a handout and a LOAN by the way) if your not willing to understand what caused the domino effect. The very same government that invented Fannie and Freddy are now the ones authorizing use of our 700 BILLION while also wanting to be the ultimate decision makers within the auto industry. Get over it? My !

Ok, my bad. I will explain a little clearer. When I say ALL are in trouble, I mean that they are all suffering from lack of sales. I have read the same thing about the big drop in sales for Toyota, but I think they are sill going to earn money this year, not beg for a handout. It isn’t the case that the Big 3 has stopped selling while the foreign guys have increase sales (although both Toyota and Honda were gaining market sharee in the first half of the year). I have read all the stuff about the foreign guys cutting expected income and all of that. Maybe I am too lazy to use the search feature correctly so if you have some info on some of the foreign guys on the verge of collapse please share. Since this post came up and when I am not feeling too lazy, I have looked but haven’t found it.

Yes, banks stop lending (I would think more commercial than consumer since I could walk into my bank tomorrow and get a car loan) but I think consumers also stopped buying is the bigger reason. So ALL companies are having supply and sales issue, but only the Big 3 are on the verge of collapse. Apparently the others are financially sound enough to weather the downturn (at this time anyway). So how can three companies be is such rough shape but others are not? Mismanagement and labor (which we actually agree on!). So the government is going to give away money (they can call it a loan all they want) to continue the same business practice. That is a bad plan.

Sounds like two of the three are getting their bailout that will keep them in business until…the end of March. They hope to get much more once the new administration is in office. Congrats to Ford not needing the money although it is a little concerning that they didn’t realize they had enough money to get by.

Yes all are suffering from lack of sales, I think we agree many industries are. Yes some are near collapse while others are not, that we also agree on. What I don’t think we agree on is the stability of the imports. While they might well be stable today they are by no means secure. Back up 18 months and the big 3, while already seeing the future, were also stable. The imports have already been enduring a few months of this so called crisis. Fast forward another 12 months if sales stay the same and let’s then review this same topic. Union or not the imports will be up a creek the same as the rest. By the way if I said the imports are on the verge of collapse (I don’t think I did?) I apologize. Truth is no one here knows for sure. I for one don’t give a rip about them either. Being foreign companies I suspect they’d go to their government for help. According to Tucks post it appears that has already been happening though.

Banks are lending better today than they did not too many weeks ago. I work in an auto dealership and can tell you there was a span of about 2-3 weeks where no loans were approved. Credit scores made no difference. It seemed the only way to get approved was to have a combined down payment/trade value of 50% or so and literally argue with the banks. This my friend is not hearsay. Many dealerships have already closed in large part because of no lending and the chain reaction that followed. And part of that reaction was the consumers stopped purchasing as you mentioned. Of course I think that happened because of the retirement plans went to pot. (Thanks Fannie, thanks Freddie!)

Regardless of what they want to call it, loan, handout, bribe, whatever the money will be spent. And again most of it inappropriately. I also think we agree on that. So B Curtis I think we agree on a whole lot more than what we may have realized. The rest? Who knows, we might both be right, wrong, neither, or both. I do bet we also agree that we hope it comes to an end sooner than later but are not holding our breath at this point to happen.

Have a good day!

ETA: I just saw on the news how the government already allowed loans (handouts?) to the banking industry of 150 BILLION dollars with absolutely no guarantees the money would actually be used to loan consumers money. Yet the big 3 are suppossed to step aside and let Pelosi et al make the decisions on what size tires to use and how to mix paint?