What happens if we let GM & Ford go bankrupt?

[tiznow]

the gas guzzling SUV boom in which people could afford 3 dollar gas was just an offshoot of our unsustainable consumer debt and housing bubble in which people could tap home equity to buy that stuff....alot of american's weren't buying the SUVs and putting 3 dollar gas in their tanks with their incomes and savings.....they were doing it with debt (remember the 0% financing days?) or home equity which is unsustainable

we created a huge house of cards and its all crumbling now and the auto industry just one piece of the big picture of things

 

[Woody0]

I drove the same nissan from 1988 to 2008 when the suspension finally collapsed.

I couldn't buy the trackrods I needed ANYWHERE.
...
Car was scrapped because no-one had spare rear trackrods in the UK.

When I handed in my documents it was lying in a private corner of the scrapyard, mysteriously untouched by the breakers.

...waiting to be shipped to Cuba which has been manufacturing car parts for the past 50 years for mostly US autos.

 

[tiznow]

Toyota's are very reliable. Fords suck - worse than most American made cars.

always have driven american cars (all used) cause i'm a tall guy when i get in a asian car i'm so damn cramped

one of the few things american cars got going for it

 

[nhoj]

Obamma Senate going to screw the people that back him. He better hope the unions don't decide to make a Change.

Save America buy a Honda.

 

[Mistermj]

Should We Really Bail Out $73.20 Per Hour Labor?



The chart above shows average hourly compensation (additional data source here) for the Big Three ($73.20) and Toyota ($48.00), compared to average hourly compensation for Management and Professional Workers ($47.57), Manufacturing/Goods Producing ($31.59) and all workers ($28.48), data available here.

Should U.S. taxpayers really be providing billions of dollars to bailout companies (GM, Ford and Chrysler) that compensate their workers 52.5% more than the market (assuming Toyota wages and benefits are market), 54% more than management and professional workers, 132% more than the average manufacturing wage, and 157% more than the average compensation of all American workers?

Maybe the country would be better off in the long run if we let the Big Three fail, and in the process break the UAW labor monopoly, and then let Toyota, Honda and Volkswagen take over the U.S. auto industry, and restore realistic, competitive, market wages to the industry. It might be the best long-run solution.

http://mjperry.blogspot.com/2008/11/should-we-really-bail-out-7320-per-hour.html

 

[brucefan]

They cant sell any more stock, or float new bonds, because the public marketplace says your business model is now not worth the risk.

So the government should invest , with taxpayers money????????

The inmates are running the asylum, and people need to wake up.

Fear is very powerful, and these politicians sure now how to use it

No business is too big to fail

If you let them go, opportunities open up for new players to pick up the pieces and create wealth!

Let the free markets work please!hno:
</RTE_TEXT>

 

[roadreeler57]

I heard yesterday GM is losing $3,000,000 per DAY.... Does that sound like a good investment/bailout?

 

[fletchisrhsm]

No business is too big to fail

If you let them go, opportunities open up for new players to pick up the pieces and create wealth!

Let the free markets work please!hno:

You see, you Neocons still have those moments where you slip back into Republicanism... its nice to see every once in a while. Well said Bruce.

 

[punter]

Should We Really Bail Out $73.20 Per Hour Labor?



The chart above shows average hourly compensation (additional data source here) for the Big Three ($73.20) and Toyota ($48.00), compared to average hourly compensation for Management and Professional Workers ($47.57), Manufacturing/Goods Producing ($31.59) and all workers ($28.48), data available here.

Should U.S. taxpayers really be providing billions of dollars to bailout companies (GM, Ford and Chrysler) that compensate their workers 52.5% more than the market (assuming Toyota wages and benefits are market), 54% more than management and professional workers, 132% more than the average manufacturing wage, and 157% more than the average compensation of all American workers?

Maybe the country would be better off in the long run if we let the Big Three fail, and in the process break the UAW labor monopoly, and then let Toyota, Honda and Volkswagen take over the U.S. auto industry, and restore realistic, competitive, market wages to the industry. It might be the best long-run solution.

http://mjperry.blogspot.com/2008/11/should-we-really-bail-out-7320-per-hour.htmlhttp://mjperry.blogspot.com/2008/11/should-we-really-bail-out-7320-per-hour.htmlhttp://mjperry.blogspot.com/2008/11/should-we-really-bail-out-7320-per-hour.html

Gotta admit that seems a bit high. How come no venom for the multi-million per year management types? Guess you figure that they earned it?

 

[eek.]

Speaking of which we aint seen much of BB in here recently.
:drink:

Sunday is usually when his missus lets him have a san miguel.

 

[punter]

BB has been MIA for a while. I think he decided Obama was the best choice and went into hideing.

 

[roadreeler57]

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<!-- InstanceBeginEditable name="Headline" -->Ford to idle nine plants for three to five weeks
<!-- InstanceEndEditable -->
<SCRIPT><!--function getText(el) { if (el.nodeType == 3) return el.nodeValue; var txt = new Array(),i=0; while(el.childNodes) { txt[txt.length] = getText(el.childNodes); i++; } return txt.join("");}mText = getText(document.getElementById("hdr_title"));document.title = mText;//--></SCRIPT><!-- InstanceBeginEditable name="Body" -->Ford Motor Co. officials have announced the company will shut down nine of the company’s plants – in Michigan, Minnesota, Ohio, Missouri, Kentucky, Ontario and Mexico – for three to five weeks because of a drop in demand for new cars and trucks. The facilities have about 23,000 production workers, according to Ford’s Web site.
Bloombergreports the shutdowns will start later this month and continue during part, or all, of December.
Ford officials indicated that they expect to make about one-third fewer vehicles this winter compared with last year. http://www.landlinemag.com/todays_news/Daily/2008/Nov08/111008/111408-14.htm

 

[fletchisrhsm]

When your paying an average $26 an hour ($60,000 a year) plus benefits that bring the company's total cost per worker to a staggering $65 an hour, and make an inferior product, your dam straight your going to have cuts. The reality is that those jobs are not 26 and up dollar per hour jobs, not by a long shot. Thus we are having a correction. I personally think GM will file for Chapter 11 and then begin to deconstruct the business trimming out all the fat and start concentrating on the cars worth carrying. Chevrolet and Cadillac.

 

[brucefan]

Let them fail!!! Jim Rogers Rogers Holdings

A Ron Paul Supporter and another one who got it right

http://www.ft.com/cms/893ac9c8-757e...html?_i_referralObject=929372837&fromSearch=n