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bitmasher's picture
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Democrats Plot Detroit Rescue

This article was on the front page of the WSJ today. You can read it here:

http://online.wsj.com/article/SB122643423580318185.html

Using tax payer funds to rescue the big three has been getting more attention over the last few days. General accounts seem to emphasize that congress needs to save the "US auto industry". The US auto industry actually goes far beyond the big three as they have steadily lost market share over the last few decades.

In order to better understand the layout of the problems of the big three (ford, gm, chrysler), I read this article a few weeks ago. Note that it came out a bit before the election.

http://online.wsj.com/article/SB122488710556068177.html

Finally here is an Op/Ed piece that appeared today in the WSJ.

Obama's Car Puzzle
http://online.wsj.com/article/SB122645159441719325.html

My two cents is that using public funds to rescue the big three is unacceptable. I cringe at the job losses that are sure to follow if any of the big three collapse. However I don't believe it proper use of taxpayer money to prop up the UAW and Big Three management, when there are other manufactures in the US that don't need or want public funding. It seems that the only reason that the UAW is getting any voice with Obama is that they were a significant campaign contributor....

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Democrats Plot Detroit Rescue

I sadly agree BT. In this case were not rescuing the big three but the big one, the UAW anyway. The problems with the auto industry can't be solved by throwing money at them short term. The UAW has for years had a strangle hold on all US auto makers. The average cost per hour to manufacture in the US thanks to them is roughly double what other (non US) auto makers are paying. They are killing their own industry and sadly many others will be affected as well. I'm not anti union and my Father was a UAW worker who said the same thing even in the seventies when he worked for GM. Unfortunately they are killing the goose that is laying their golden eggs. It's been a slow, painfull death but I fear the end is near. I hope I am wrong.

expatriate's picture
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Democrats Plot Detroit Rescue

I'm getting a little concerned. Apparently assistance isn't enough; now we're talking about government ownership. The Democrats are currently toying with a $25B bailout for the Big 3 in exchange for a government ownership stake.

Meanwhile, Treasury Secretary Paulson said yesterday that the administration is scrapping its plan to buy troubled assets from banks, and is instead proceeding with a plan to buy stock in the banks. In other words -- government ownership.

Government taking ownership of private industry is known as "socialism," SoCo. As badly run as I consider the Big 3 to be, I shudder to think how things could get worse if a major stockholder started voting based on political agendas rather than economics. If the government manages auto production the way it handles any other procurement or public works project, your next compact car is going to cost $150,000 and you'll wait three years for it. Welcome to East Germany -- enjoy your new Trabant.

And as for the banks...I just don't see how they'd run better if they were managed by an organization that has run itself $10 trillion in debt and is increasing that debt by almost $4 billion per day.

http://www.favorite.com/news/democrats-readying-bailout-legislation-with...

http://www.foxnews.com/story/0,2933,451185,00.html

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Democrats Plot Detroit Rescue
Quote:
Meanwhile, Treasury Secretary Paulson

I heard not stocks but just injecting liquidity (money). The scale of the thing makes the auto bailout seem tiny.

In the original deal the taxpayer would get a return on the upside, Paulson has just decided to use the money any old way he pleases. Of course congress still held onto half of the 700B. I wouldn't mind the government taking over either of the businesses. If my money is being used I want to tell them how big their paycheck can be or if they get bonnuses or if they can take expensive European hunting trips, or if they have to start making cars that get 50mpg.

Socialism has already come from your buddy W, the only thing not socialized is the profit. If I have to take some risk why shouldn't I be able to run it too.

There is a mad rush to get as much as possible before the spigot is turned off on Jan 20.

expatriate's picture
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Democrats Plot Detroit Rescue

You honestly think the spigot is going to turn off on Jan 20? I think it's more likely the spigot will be taken off, not turned off, and they'll let it gush.

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Democrats Plot Detroit Rescue
civetcat wrote:
Quote:

Socialism has already come from your buddy W, the only thing not socialized is the profit.

Where do you come up with this nonsense.
What has "W" socialized?
Better watch out cause when you name something, then all of your arguments from previous post will be kaput.
Isn't "W" holding all the Lil guys down?
Capitalism? Free Market?
You contradict almost everything you post, even saying some hysterical nonsense and posting a link that completely disagrees with what you attempted to qualify with the link.
Take a break, a nap and as you say, go shoot some targets.

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Democrats Plot Detroit Rescue

Um...Yeah, what tapia said!!