Should the US bailout the big three automakers?

[Jamo]

Originally Posted by 427sharpe

Uhh..I haven't seen any 'serious pay and benefit' cuts, but I do see the union ending up owning 20% of the new (taxpayer funded) company while secured bond holders get fu**ed.
And after BoBo and crew get done, I am sure the union boys will line up for more handouts/strikes/etc...
I suppose you have seen the 'brains' behind this whole operation...a 31 year old fresh out of grad school who has never held a job in his life.

You're seeing what I'm seeing. The bondholders...the folks that invest in the industrial machine that creates jobs in this country...were shafted big time. Where in the hell does DC think they're going to get investment capital in the future?

...tax dollars.

[Wayne Maybury]

Originally Posted by Jamo

You're seeing what I'm seeing. The bondholders...the folks that invest in the industrial machine that creates jobs in this country...were shafted big time. Where in the hell does DC think they're going to get investment capital in the future?

...tax dollars.

While the bondholders got screwed, what about the old shareholders? They really got shafted. While much of the old stock was held by institutional investors, some was held by everyday people that invested their retirement savings in GM. Those investments are virtually worthless.

The buring question is what now happens to Ford? The governments have bailed out GM and to a lesser extent, Chrysler. Does this now not put Ford at a disadvantage when it was the only one that deserved to survive?

Wayne

[Ron61]

With the way Obama is taking over the country Ford will most likely have to cede a controlling interest to the Govt. or they will be put out of business. Or they could just pack up and move to another country.
I also expect to see a mess among the suppliers to GM and the rest as they will have to cut back due to the smaller amount of cars produced. I really likes the statement that they would like to see every person in a brand new less polluting car within three years. Talk about not having any sense of reality. Where are the people who still have jobs going to come up with enough extra money to buy these expensive cars they want them to have?

Ron

[427sharpe]

Ron, why the German model Cash for Clunkers program! The gummint will subsidize your purchase of a new car, baby!
That way, you help the union boys (big block-o-voters there!) AND you get Joe Schmo to like you...as long as Joe was a 'D' student in economics and fails to realize that BoBo just heaped a pile o' debt on his kids! Whoooo Hoooooo! Line up on the left for your Obama Check!
And maybe the UAW will realize they put Ford at a disadvantage and renegotiate a contract in line with Gm/Chrysler! ROFLMAO!!!!!
I think it more likely UAW PUSHES FoMoCo into BR, knowing they are going to get 20% of the 'new' company!

[Ron61]

I wonder how it will play when the dam unions get controlling interest in all of the businesses. Will they allow their members to go on strike against them or demand they take pay cuts so the union officers in the International can have more pay.

With the way the Govt. only deals in the millions and billions now, I think I will apply for a 100 million bail out. Tax free of course and not to be paid back.

Ron