Aid plan for Big Three falters in Congress

Aid plan for Big Three falters in Congress

w ww.marketwatch.com
(visit the link for the full news article)

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Mod Edit: Title altered to fit new original source



[edit on 11/20/2008 by Badge01]

Well well well... ANOTHER bailout for corporations who doesn't really deserve it... Except maybe Ford.

GM is a complete failure since at least 5 years...

More money down the sink.

And what's funny is even after this bailout, the shares of Ford And GM are struggling.

At least Citigroup is going down and Morgan Stanley sees 0% interest rates by february...

w ww.marketwatch.com
(visit the link for the full news article)

reply to post by Vitchilo

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Misleading and incorrectly titled post

*sigh*

Best bailout deal I can imagine for them would be to give them a bucket and tell them to start bailing.

They haven't got it yet. It has to be voted on and even in the story itself it says people are not sure if it will pass both houses of congress.

Oh sorry.... I thought a deal was a real deal... like a bailout...

Really sorry... Delete this thread.

[edit on 20-11-2008 by Vitchilo]

I guess that would explain this . . . .



Other Thread Post

You know, the auto industry is least deserving of a bailout... but it needs to be done.

Think of the millions of people employed by the big three... and now lets figure out how many people made the decisions that got them to where they are...

maybe 10 ppl? ruined it for the millions?

I don't think people realize exactly how bad things will be if the Auto industry goes belly up. We're going into a depression, that much is obvious...

The big 3 were the ones that helped get us out of the last depression (making stuff for the war).

If the big 3 go under, this depression will be even longer, and deeper than you could ever imagine.

I hope selling their private jets and returning home in one of their own
vehicles is in the compromise.

This will set another horrible precedent if passed. Where does it stop after this? Retail will be the next industry with their hands out.

I am hocked to the CNBC right now and I watched the news conference by the Automakers and they nail Washington when they told them that it was OK to bail out the financial but not the automakers that provide jobs for the American worker.

But it seems that the bail out aka loans will be rejected, because congress will wait until Obama becomes president to do the loans.

Has somebody been watching the markets ups and downs during all this? is just fantastic to see how volatile they are.

[edit on 20-11-2008 by marg6043]

Did they learn nothing from AIG? The automakers will come back for more. It's a win win for corporate enterprises. They know they will get bailed out by Congress at the taxpayers expense again, and again. If they don't get the money, they will file bankrupcy and destroy the unions. That's why the big three were all smiles at the Congressional hearings and flaunting their wealth. In a global economy they don't want unions. They will be back for more $$$$$.

The Automakers will take the money and then next year when things get worst they will close doors and move on.

We will be left with the tax tag.

Paulson the thief of tax payer money is now talking in TV as arrogant as usual after he gave our tax payer money to his own cronies, after all he is out of the door with a very big pay off from his masters for doing the deed.

Why do so many people think that if they don't get a bailout that the doors simply close, the plants shut down, and 3 million people get a pink slip?

The auto industry does NOT need a bailout. The big three all need to slip into chapter eleven, and reorganize the upper echelons of management (ie kick the 10 you mentioned to the curb).

People must realize that a bailout isn't a solution, let alone the solution. If you're on a sinking ship, you can "bail" all you want, the ship's still going to sink unless you plug the hole. Letting these companies fail, and subsequently reorganize themselves addresses the hole. A bailout merely addresses the water already in the ship, but does nothing to prevent more from coming in.

They probably sell to to any nation that will buy them out, already while the Automakers are asking for a bail they are building factories in other nations like Russia, Germany and China.

And they are trying to sell to those countries and also to India.

So yes the factories can pretty much be sold to foreign nations and as for India they are now starting their own car manufacturing with eyes in the America market.

Anybody for an Indian made car?

reply to post by Unit541

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Exactly the point I've been trying to make. The big misconception floating around pretty much everywhere is that bankruptcy means done . . . That's Chapter 7 where they liquidate and pay off creditors.

But clearly what they're talking about here is Chapter 11, where they continue to operate under Debter in Posession Financing whereby they are closely scruitinized to by the judiciary and trustees to make sure what they're doing is fiscally sound and will right the ship.

Giving them money right now is akin to giving crack to an addict. Get's them through the short term, but long term the host whithers and dies.

The tough thing here is that there is no margin for error considering the fragile state of the economy as a whole.

Give them the capital and then, after the crisis is over, mortify the CEO's and union leaders. It is counter-intuitive to allow the car industry to become redundant - the massive job losses would be potentially difficult to stomach (in the current economic climate). What we cannot have is the current administration leaving all major economic problems to the new incoming government, the consequences would be disastrous. January is too late to orchestrate a massive stimulus.

Let us be very polite, diplomatic, suave and candid to the automakers/bankers and then violate the Geneva Convention in January. Soviet style public trials are in order after this monolithic failure, with CEO's having abuse hurled at their portraits in Orwellian propaganda theatres (read 1984 to understand the reference).

Seeing Paulson decided to countermand his own bank bailout plan, the idea of an economic depression is back on the table. Allow the automakers to fail and we've dug our own economic graves.

The Treasury should dictate that aid will only be provided if the government holds the responsibility for restructuring the auto sector. Don't allow the lunatics to run the asylum.

There has been an update....





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