Should the US bailout the big three automakers?

[Dan40]

puppster,



I agree with what you are saying, IF, the auto mfgs. were to disappear. It COULD be a calamity. And for every facet of our economy, not just auto related. But that is the "SCARE TACTIC," that Detroit is trying to use. They actually said that if the bailout money is not paid, GM would be gone by January 1. THREE WEEKS? If I were a congressman I would have adjourned the meeting at that point, Telling them to get out and stay out since we do not negotiate with terrorists.
Bankruptcy laws contain many levels of protection for companies. What bankruptcy laws do not contain is registered voters that are UAW members.
That is the only thing our politicians are considering.
If bankruptcy protections did not work, THEN would be the time to consider bailouts. The big 3 are trying to hitch onto the credit crunch as the root of their problems. That is a lie, the credit crunch is simply the final exposure of their decades long mismanagement. They have been operating on the business model, "We lose money on every sale but the volume makes up for it!" for 20 or 30 or more years. Now they get exposed by the lack of volumne. The big 3 are not good investment risks, They are not good credit risks. They HAVE already been rejected by the people that are in the loan business. Congress knows nothing about the loan business [or any other], they are the last to approve a loan to anyone.
Imagine someone you barely know comes to you for a loan. A HUGE loan, more than you have!
They tell you that they are broke.
They tell you they owe billions to others in front of you.
They tell you they have no idea how they will pay you back or even IF they will pay you back.
They tell you their credit rating is at 0.
AND, THEY TELL YOU, YOU WILL SUFFER IF YOU DON'T GIVE THEM THE MONEY.

Who wouldn't jump on that deal?

Does anybody have any experience loaning money to someone with bad credit, huge debt, no income, no plan, and a horrible history?
How did it work out?

Bankruptcy, with a complete overhaul of ALL their business plans AND a complete change of management might be the best [and maybe only] thing to save the US auto industry.
We have decades of experience of knowing that giving people and institutions money they don't deserve and haven't earned, doesn't work!

Dan

[Keithc8]

You are exactly right about the Democrat congressman and the money they receive from the UAW. All of these people need to learn how to work and make the same money as other peolpe in other industries.
I know for a fact that they could fill those jobs in one week at 15.00 to 20.00 and hour. They have all made to much money and agreed to way to much compensation for way to long. File bankruptcy and then reorganize like many other companies have. They say this is not a option but I do not know why.
The unions have way out lasted their need to exist. They are not needed anymore. Most of the people that work at these plants work a lot slower than the avarage American worker for a lot more money. It takes way to many of them do the jobs that are required but that is the union way. You better not work very hard and make the rest of us look bad. The job banks and other stupid stuff they have to pay for is crazy. No one could stay in business with the pay scale and benefits that these guys have.
America better wake up and get of its ass and go to work because we are getting pretty lazy as a whole. I was taught that if you wanted something you worked harder and smarter than the other guy and you would be succesful.
If there is a demand for more cars someone will come along and do it better. They will buy the plants and get new workers and get the job done if there is money to be made. Last time I checked this was a capilist country and the Big Three have had their heads up their asses for 20 years and gotten raped by the UAW. Now they want us to pay for all of the mistakes and keep paying all of them these over priced wages. They need more like 150 billion to come out of this deal and we are just wasting tax payers money with bull **** loan that will never be repaid because they will go out of business anyway.
Someone is going to have to go in and tell the Big Three and UAW that this is the way it is if you want any money. You will structure yourself after other modern successful companies with similiar pay scales. Move them all to other states with no unions and they will maybe make it. I want them to succeed but in the right way. I have never purchased a foriegn car and came close this last time but I am a die hard American and try to buy American. The American car companies can not compete against the foriegn car companies the way they are now that is for sure. You would have thought these idiots would have seen this coming.