Comments on: The Big Three are Back in Washington http://www.consumerismcommentary.com/2008/12/04/the-big-three-are-back-in-washington/ A premiere personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Sat, 21 Nov 2009 16:42:00 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Jim http://www.consumerismcommentary.com/2008/12/04/the-big-three-are-back-in-washington/#comment-186593 Jim Mon, 08 Dec 2008 22:43:16 +0000 http://www.consumerismcommentary.com/?p=4799#comment-186593 A lot of people here think the automakers shouldn't get loans and should be allowed to fail. To those people: Do you think AIG or the banks shouldn't have gotten loans they already got and should they have been allowed to fail? Just curious. It seems theres a lot of people very against auto maker loans. I don't seem to remember such an outcry and criticism of AIG and banks who already got several times as much without highly publicized congressional criticism of executive jets or executive pay. A lot of people here think the automakers shouldn’t get loans and should be allowed to fail. To those people: Do you think AIG or the banks shouldn’t have gotten loans they already got and should they have been allowed to fail?

Just curious. It seems theres a lot of people very against auto maker loans. I don’t seem to remember such an outcry and criticism of AIG and banks who already got several times as much without highly publicized congressional criticism of executive jets or executive pay.

]]> By: Chris http://www.consumerismcommentary.com/2008/12/04/the-big-three-are-back-in-washington/#comment-186582 Chris Sun, 07 Dec 2008 21:48:58 +0000 http://www.consumerismcommentary.com/?p=4799#comment-186582 I've been discussing this with someone at work pretty intensely. On one hand, they should be allowed to fail because that is capitalism...but on the other it could lead to a huge snowball effect of job losses, etc. There are so many distributors and suppliers, etc. that are tied to the big three that it could get pretty ugly. I’ve been discussing this with someone at work pretty intensely. On one hand, they should be allowed to fail because that is capitalism…but on the other it could lead to a huge snowball effect of job losses, etc. There are so many distributors and suppliers, etc. that are tied to the big three that it could get pretty ugly.

]]> By: UH2L http://www.consumerismcommentary.com/2008/12/04/the-big-three-are-back-in-washington/#comment-186571 UH2L Sat, 06 Dec 2008 05:21:42 +0000 http://www.consumerismcommentary.com/?p=4799#comment-186571 York, They may have slightly higher salaries but the benefits are ones that have helped us all get better benefits. I guess you want our country to have to pay for their unemployment and Medicaid now while having less tax revenue from the millions of lost jobs. And since when is nearly half of the market cars that people don't want? Read the link I posted above to learn about the realities of the auto industry. UH2L York,

They may have slightly higher salaries but the benefits are ones that have helped us all get better benefits. I guess you want our country to have to pay for their unemployment and Medicaid now while having less tax revenue from the millions of lost jobs. And since when is nearly half of the market cars that people don’t want? Read the link I posted above to learn about the realities of the auto industry.

UH2L

]]> By: York http://www.consumerismcommentary.com/2008/12/04/the-big-three-are-back-in-washington/#comment-186569 York Sat, 06 Dec 2008 00:10:38 +0000 http://www.consumerismcommentary.com/?p=4799#comment-186569 Eden said it first and said it best, they should be allowed to fail. Their business model is failed with bloated union salaries / benefits and cars that people don't want. Until these issues are fixed, a "loan" is money going down the toilet Eden said it first and said it best, they should be allowed to fail. Their business model is failed with bloated union salaries / benefits and cars that people don’t want. Until these issues are fixed, a “loan” is money going down the toilet

]]> By: PerDiem http://www.consumerismcommentary.com/2008/12/04/the-big-three-are-back-in-washington/#comment-186568 PerDiem Fri, 05 Dec 2008 21:40:40 +0000 http://www.consumerismcommentary.com/?p=4799#comment-186568 If they are really worth saving, Warren Buffet would have bought one of them by now. If they are really worth saving, Warren Buffet would have bought one of them by now.

]]> By: vilkri http://www.consumerismcommentary.com/2008/12/04/the-big-three-are-back-in-washington/#comment-186552 vilkri Fri, 05 Dec 2008 11:18:47 +0000 http://www.consumerismcommentary.com/?p=4799#comment-186552 I read about an analyst yesterday who estimated that the big 3 needed $125 billion (or was it 175) to get back in shape. I read about an analyst yesterday who estimated that the big 3 needed $125 billion (or was it 175) to get back in shape.

]]> By: UH2L http://www.consumerismcommentary.com/2008/12/04/the-big-three-are-back-in-washington/#comment-186548 UH2L Thu, 04 Dec 2008 23:26:00 +0000 http://www.consumerismcommentary.com/?p=4799#comment-186548 To add another point. I expect that if the Detroit 3 get their loans that they will be required to produce more efficient vehicles which is good. But is there any guarantee that people will want to buy these instead of more powerful vehicles if gas prices stay below $2 per gallon? No. Consumers didn't want them before when gas was under $2 a gallon and now that it is again, Ford had to add shifts to build its F150 pick-up trucks. And you can criticize them for doing so, but if they didn't, Toyota would have been happy to ramp up their Tundra production to fulfill the need and increase their own profits. I just doubt that the public and the media would criticize Toyota, (the media darlings that they are), for doing so. To add another point. I expect that if the Detroit 3 get their loans that they will be required to produce more efficient vehicles which is good. But is there any guarantee that people will want to buy these instead of more powerful vehicles if gas prices stay below $2 per gallon? No. Consumers didn’t want them before when gas was under $2 a gallon and now that it is again, Ford had to add shifts to build its F150 pick-up trucks. And you can criticize them for doing so, but if they didn’t, Toyota would have been happy to ramp up their Tundra production to fulfill the need and increase their own profits. I just doubt that the public and the media would criticize Toyota, (the media darlings that they are), for doing so.

]]> By: UH2L http://www.consumerismcommentary.com/2008/12/04/the-big-three-are-back-in-washington/#comment-186547 UH2L Thu, 04 Dec 2008 23:22:24 +0000 http://www.consumerismcommentary.com/?p=4799#comment-186547 It's amazing the amount of ignorance there is out there about the auto industry. Cars are not computers, software, or cell phones, and you can' outsource them to China and start making cars in a couple of months. There are years of lead times for tooling, testing, and development, and so much specialized expertise is behind them. I think a lot of the anti-loan sentiment is out of jealousy and disdain. We should move beyond that in understanding what is best for our country and its people. I became tired of retyping why I think the loans, (not bail-outs since the money is to be repaid), are necessary... <a href="http://uh2l.blogs.com/things_ive_noticed/2008/11/weve-heard-a-lot-of-news-from-the-press-lately-about-the--dire-situation-the-american-automobile-industry-is-in-in-pa.html" rel="nofollow">link</a> I address all the issues 1-by-1. Please have a read. It’s amazing the amount of ignorance there is out there about the auto industry. Cars are not computers, software, or cell phones, and you can’ outsource them to China and start making cars in a couple of months. There are years of lead times for tooling, testing, and development, and so much specialized expertise is behind them. I think a lot of the anti-loan sentiment is out of jealousy and disdain. We should move beyond that in understanding what is best for our country and its people. I became tired of retyping why I think the loans, (not bail-outs since the money is to be repaid), are necessary…

link

I address all the issues 1-by-1. Please have a read.

]]> By: Craig http://www.consumerismcommentary.com/2008/12/04/the-big-three-are-back-in-washington/#comment-186545 Craig Thu, 04 Dec 2008 20:43:15 +0000 http://www.consumerismcommentary.com/?p=4799#comment-186545 I agree with CJ that the salary is a publicity stunt. I like everyone else want to learn about their new business model. The companies should be making more efficient cars that require less money to fill up the tank, and could benefit the environment. Of course that's asking a lot, but people want to see change. Is there any? I agree with CJ that the salary is a publicity stunt. I like everyone else want to learn about their new business model. The companies should be making more efficient cars that require less money to fill up the tank, and could benefit the environment. Of course that’s asking a lot, but people want to see change. Is there any?

]]> By: sjm http://www.consumerismcommentary.com/2008/12/04/the-big-three-are-back-in-washington/#comment-186544 sjm Thu, 04 Dec 2008 20:14:37 +0000 http://www.consumerismcommentary.com/?p=4799#comment-186544 Let ALL three fail. The next generation of efficient cars will come from cilicon valley and NOT Detroit. All three are spoil brats who do not want to grow up and be self sufficient. Tough love is the best medicine. Bankcruptcy is the best medicine even though it taste like crap. Let ALL three fail. The next generation of efficient cars will come from cilicon valley and NOT Detroit. All three are spoil brats who do not want to grow up and be self sufficient. Tough love is the best medicine. Bankcruptcy is the best medicine even though it taste like crap.

]]> By: CJ http://www.consumerismcommentary.com/2008/12/04/the-big-three-are-back-in-washington/#comment-186539 CJ Thu, 04 Dec 2008 16:23:04 +0000 http://www.consumerismcommentary.com/?p=4799#comment-186539 $1 per year means nothing as they likely have lots of stock in the company and even if they lost their jobs, the golden parachute would be large. It's just a publicity stunt. $1 per year means nothing as they likely have lots of stock in the company and even if they lost their jobs, the golden parachute would be large. It’s just a publicity stunt.

]]> By: Mike http://www.consumerismcommentary.com/2008/12/04/the-big-three-are-back-in-washington/#comment-186537 Mike Thu, 04 Dec 2008 15:52:46 +0000 http://www.consumerismcommentary.com/?p=4799#comment-186537 These are empty gestures. They should have "gone to these extremes" long ago, not now when they want a free hand-out. After all, they're showing up in hybrids now only because people were so angry at them the first time they showed up in jets demanding money. They didn't even clue in the first time they wanted money. I love how it's OUR fault how the world will be in ruin if WE let them fail by not giving them our money for free! How about running a company properly in the first place??? These people make me so angry, the nerve they have... DON'T bail them out, don't believe anything they say, let them fail so a more efficient company can take over. These are empty gestures. They should have “gone to these extremes” long ago, not now when they want a free hand-out. After all, they’re showing up in hybrids now only because people were so angry at them the first time they showed up in jets demanding money. They didn’t even clue in the first time they wanted money. I love how it’s OUR fault how the world will be in ruin if WE let them fail by not giving them our money for free! How about running a company properly in the first place??? These people make me so angry, the nerve they have…

DON’T bail them out, don’t believe anything they say, let them fail so a more efficient company can take over.

]]> By: Eden http://www.consumerismcommentary.com/2008/12/04/the-big-three-are-back-in-washington/#comment-186536 Eden Thu, 04 Dec 2008 15:45:46 +0000 http://www.consumerismcommentary.com/?p=4799#comment-186536 They should be allowed to fail. If they do get this bailout, they'll be back soon enough asking for more. They should be allowed to fail. If they do get this bailout, they’ll be back soon enough asking for more.

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