Bailout for Auto Manufacturers

[David P. Valley]

Now the auto manufacturers want our government to bail them out, too.

I wish I could get filthy rich off our economy and then in the tough economic times, cry bankruptcy. Then the FEDS will decide to pour hundreds of thousands of dollars into my bank account just so I can remain in business. This bailout shi+ is becoming ludicrous.

http://finance.comcast.net/www/news....07/1109072.xml

http://www.comcast.net/data/fan/html...inance_sidebar

[John Bowman]

David,

I agree with you. It's a sad state when we bail out these transportation industries (i.e. auto, flight, etc.)...Yet sit back and watch as many of our educational and medical facilities are closed.

Where are our priorities...

John b.

[nwagner]

Absolute bulls***. Instead of learning a few things from Toyota, who continues to enjoy profitability during these supposedly impossible times for automotive manufacturers, they continue to make the same fundamental business mistakes. And now, we are expected to artificially prop them back up. What a disgrace.

[klott]

Originally Posted by nwagner

Absolute bulls***. Instead of learning a few things from Toyota, who continues to enjoy profitability during these supposedly impossible times for automotive manufacturers, they continue to make the same fundamental business mistakes. And now, we are expected to artificially prop them back up. What a disgrace.

Nick, Toyota is not held hostage by Unions,and they avoid the massive taxes that the big three have to pay by coming through Hong Kong. If the Democrats want to collect more taxes, they should start by not letting all of the importers import Duty Free by coming through Hong Kong. Also they should stop letting immigrants come here and get government loans at 1 % interest and no taxes for the first five years in business, which after five years, they simply sell the business to relatives who do the same thing. Which is the reason all Convience stores, Dairy Queens and other types are mostly owned by East Indians and Pakistanis, whonever pay taxes, but send the money home. I know an Iranian who does this every month. IMO

[klott]

BTW, wrong place for thread.

[nwagner]

Originally Posted by klott

Nick, Toyota is not held hostage by Unions,and they avoid the massive taxes that the big three have to pay by coming through Hong Kong.

Excuses excuses. They made mistakes and now they expect us to pay for them. So much for that concept called capitalism.

[rbrady]

From article:

"Are you happy to see the government bailouts?
I know I am. It's about time the government recognized the importance of industries that are suffering & need billions of dollars to sustain their business. Where were the government bailouts when so many other worthy industries in the past were dying and struggling for their very existence?
Where were the government bailouts when the horse and buggy industry was fighting to keep up with the newly invented automobile? Where were the bailouts when the US textile industry all went east and west and every other direction but home? To my understanding, today, there is not one shirt manufactured from scratch in the US ."

http://www.marketoracle.co.uk/Article7174.html

[Michael Larson]

Originally Posted by nwagner

Excuses excuses. They made mistakes and now they expect us to pay for them. So much for that concept called capitalism.

If we provide any more money to US automakers most of the leadership in these companies should lose their jobs.

Off course so should the lawmakers that continue to impose CAFE standards and other mandates on the auto industry.

It's hard to imagine no GM, Ford, and Chrysler.
But the world would not end if all of our autos came from foreign owned makers.

[rbrady]

Originally Posted by mlarson

It's hard to imagine no GM, Ford, and Chrysler.
But the world would not end if all of our autos came from foreign owned makers.

They won't go away. They would declare bankrupty and all the stock and bond holders would lose their money. That's who we are really bailing out.

[Michael Larson]

Originally Posted by rbrady

They won't go away. They would declare bankrupty and all the stock and bond holders would lose their money. That's who we are really bailing out.

I used to think too that but some now say they would go away and their assets would be liquidated.

Other US makers may arise and that may not be a bad thing.

[klott]

Originally Posted by mlarson

If we provide any more money to US automakers most of the leadership in these companies should lose their jobs.

Off course so should the lawmakers that continue to impose CAFE standards and other mandates on the auto industry.

It's hard to imagine no GM, Ford, and Chrysler.
But the world would not end if all of our autos came from foreign owned makers.

You better think about that, a whole lot more is at stake than just the big three. I believe it would cause a depression.

[gbeaumont]

Originally Posted by mlarson

I used to think too that but some now say they would go away and their assets would be liquidated.

Other US makers may arise and that may not be a bad thing.

Unfortunately their assets if it comes down to it will be worth surprisingly little, the world is awash with vehicle production capacity, and it's likely that the major newer plant equipment would be sold for pennies on the dollar and shipped to India or China. Investors would see nothing.

Regards

Gerry

[gbeaumont]

Originally Posted by klott

I believe it would cause a depression.

News flash Ken we are already in a recession

Gerry

[Michael Larson]

Originally Posted by gbeaumont

Unfortunately their assets if it comes down to it will be worth surprisingly little, the world is awash with vehicle production capacity, and it's likely that the major newer plant equipment would be sold for pennies on the dollar and shipped to India or China. Investors would see nothing.

Regards

Gerry

No argument there.

Here is teh question of teh day

Where does the Federal government draw the line between continued bailouts with it's increasing Socialism and letting Capitalism do what it does(pick winners and losers via the market)

We are already far down that road IMHO.

[Michael Larson]

Originally Posted by gbeaumont

News flash Ken we are already in a recession

Gerry

Recessions happen as part of the normal business cycle.

Depressions are usually caused or at least prolonged by government actions.