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Automotive News & Views Do You Favor A Government Loan To The Detroit 3?
3958 messages, Last post on Oct 02, 2009 at 4:52 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
The continued thought process of "too big to fail." Whether it is financial services, AUTOS, transportation, etc., the "top-down" approach of providing more and more taxpayer dollars to weak corporations is ill-advised. In my opinion, if you're using taxpayer dollars, then either nationalize the company or let it fail. And, if you nationalize the company then wipe out the bond holders and shareholders, replace the management and board, sell the good assets to qualified buyers, and then and only then, have the taxpayers eat the remaining deficit. With the current "bailout system" we are merely trying to sustain the status quo, which penalizes those business institutions that did not make bad decisions while at the same time rewarding poorly managed institutions by handing them taxpayer money. Until you put the stimulus money back in the hands of the private sector (i.e., the individual) you're fighting today's housing/mortgage fires with a garden hose. The bailout funds need to be distributed to the homeowners, not the D3, banking and lending institutions. Banks currently taking the government TARP money (our tax money) are adding it as capital to their balance sheets and then sitting on the funds in anticipation of further losses, rather than lending back into the system. Obama should follow the laws of nature: if you have a herd of animals and some become sick, get rid of the sick. Why continue sustaining the sick animals that will eventually die anyway and at the same time risk the entire herd? A prime example of propping up the status quo occurred in December of this year when Treasury Secretary Paulsen made the unilateral decision to guarantee $306 billion of CitiGroup's assets. The guarantee was in addition to the $25 billion Citi had already received in TARP funding. The $306 billion "guarantee" was not part of TARP and was extended without Congressional approval! $306 billion is equal to what our government spent in 2007 for the departments of Agriculture, Education, Energy, Homeland Security, Housing and Urban Development, and Transportation combined. (The Economist) Unfortunately, the only money makers to come out of TARP and the proposed stimulus bill, in my opinion, will be the lobbyists, the legislators (imagine, with our taxpayer money, the campaign contributions to be received!), and a few "selected" legal, accounting, and infrastructure firms. 
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Replying to: explorerx4 (Jan 12, 2009 7:17 pm) That is your right and I am not going to argue. I have owned many American made cars and they have been fine. My foreign made car is far superior so that's what I'll be buying. My father, and 2 brothers would say the same, so that's a big percentage from one family - 100% out of 4 cars! That should tell the D3 something 
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Replying to: gagrice (Jan 12, 2009 7:33 pm)  Regards, OW
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Replying to: circlew (Jan 13, 2009 4:26 am) Put it out in battle and the enemy will go running. Especially if the paint them dull olive green which I saw once.....it was 1st prize in a contest. I think I'd be too embarassed to claim it. 
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hrysler’s parent company Cerberus is in talks with Renault-Nissan and Canadian parts supplier Magna about selling its various car brands, according to a report published late Wednesday. link title
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Replying to: circlew (Jan 14, 2009 4:51 am) I guess Magna is glad they lost out to Cerberus in the first round of Chryslers sale. It would make some sense for them to buy part of Chrysler since they make so many parts for Chryco already......but buying the Calibre and PT Cruiser lines  Does that make sense?
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Replying to: circlew (Jan 14, 2009 4:51 am)
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From the following I don't see auto sales increasing volume anytime soon, except for an occasional blip due to a sale or some special event. http://www.marketwatch.com/news/story/three-unappealing-conclusions-internationa- - l-banks/story.aspx?guid=%7B00F8D01E%2D13BE%2D411B%2DB374%2D08630DCA8F0B%7D&dist=- - TQP_Mod_mktwN The price moves are understandable since the latest events offer an unappealing menu of conclusions: 1) The banks themselves haven't done as well as perceived at coping with the crisis; 2) Things are getting a lot worse for banking and the global economy; 3) Both. This means that it is more doubtful that any auto-maker will make $ for a while.
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Replying to: kernick (Jan 14, 2009 9:07 am) 2) Things are getting a lot worse for banking and the global economy; 3) Both. Looks bleak.......but one day this too shall pass.....we all hope! |
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Replying to: bpizzuti (Jan 14, 2009 5:50 am) --THEN, to export those jobs to where they could exploit the poor-usually in some third world country-where they ALSO got to "help" write enviormental policy,and labor laws,all to "maximise profits",,then still ask 40.000 for a car that won't go 100.000 miles and still be a car,while europe has been doing it for generations.. the thing that gets me,is where they tell people to put that 5w20 oil in their cars-KNOWING a motor will sieze a main bearing with that thin crap in it..rember 3-in-one oil?..that was a 10 weight oil..so,would YOU expect protection from a oil too thin to lubricate a sewing machine??..and the hundreds of cars i see for sale on craigs,where-it's a nice car,only needs a motor !!they call it "planned obsolesence",where parts only last for about 100.00,then,are designed to break,so you get tired of fixing that old,dirty,dented car for a NEW one,and they make money!!!
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