Are Ford, GM and Chrysler going to make it?

[Mark_88]

Well, if the government is looking to that source for funding then, yes, it will pretty much lock them into some sort of slavery for generations...

But I really don't think they have too many options...there are no current alternatives to fossil fuels...and if the auto industry collapses now it would spell severe depression...and since that makes up about 45% of the job market (including aftermarket and the service industry) you're going to end up with a 90% government job market...and that is communism in it's finest form...

 

[Evan]

Well, if the government is looking to that source for funding then, yes, it will pretty much lock them into some sort of slavery for generations...

But I really don't think they have too many options...there are no current alternatives to fossil fuels...and if the auto industry collapses now it would spell severe depression...and since that makes up about 45% of the job market (including aftermarket and the service industry) you're going to end up with a 90% government job market...and that is communism in it's finest form...

Good post.

But my thoughts are: we can dump billions of dollars into the auto companies, have them fail in late 2009, and then go into a deep recession, or...we can keep the billions of dollars, have them fail in early 2009, and then go into a deep recession.

Certain sectors are still expected to have job growth during the next few years, like IT, education, and health care.

 

[Ozwynn]

I would say a whole lot less that 45%, more like 10 - 20% of the job market, the after market is effected by the slow economy but not by the Big 3 failing, they will just retool for something else. They need to be allowed to go bankrupt so they can restructure. like CEOs that have had nothing to do with the auto industry, universal robotics like the jap plants (jap plants can do a line change in 18 - 20 min. Takes the big3 18 - 20 weeks) and get rid of the UAW. the Federal gov'ment has been trying to kill the auto industry for decades, the only reason they are considering a bail out is because of all the union contributions to campaigns.

 

[Mark_88]

Good post.

But my thoughts are: we can dump billions of dollars into the auto companies, have them fail in late 2009, and then go into a deep recession, or...we can keep the billions of dollars, have them fail in early 2009, and then go into a deep recession.

Certain sectors are still expected to have job growth during the next few years, like IT, education, and health care.

Thanks. I'm not certain though that there will be growth in any sectors if they don't find a suitable replacement for the auto industry.

I would say a whole lot less that 45%, more like 10 - 20% of the job market, the after market is effected by the slow economy but not by the Big 3 failing, they will just retool for something else.

I'm using figures I put together about ten years ago...at that time it was very close to 45% but may have dropped due to growth in things like computers, software, internet, games, and maybe financial sectors. The construction and other sectors like services have not made major gains and even if they did those would probably dry up pretty quick as a major sector is virtually wiped out.

Not saying they shouldn't let them fend for themselves, but it looks like the government recognizes their importance to stabilizing the economy. Right about now that is their priority.

Fear is one of the biggest factors of spending...and right now, with the way things are going, the Christmas season, which is probably THE biggest seasonal boost to the ecomony is teetering in favour of the GRINCH.

They need to be allowed to go bankrupt so they can restructure. like CEOs that have had nothing to do with the auto industry, universal robotics like the jap plants (jap plants can do a line change in 18 - 20 min. Takes the big3 18 - 20 weeks) and get rid of the UAW. the Federal gov'ment has been trying to kill the auto industry for decades, the only reason they are considering a bail out is because of all the union contributions to campaigns.

I would have to agree that they need to reconsider their upper end as much as the bottom end 100%...but they can do that without letting them go to pot overnight. The very things you mention should have been conditions they had to have met in the last bailout, but that didn't seem to happen...so they are still in trouble and will continue to be in trouble until that is dealt with effectively.

 

[Ozwynn]

I actually have more to spend this christmas than in the past 5 years combined.

 

[Mark_88]

I actually have more to spend this christmas than in the past 5 years combined.

Cool~! I'd like a new truck (blue), a new computer, some nice shoes...oh, and a pair of fuzzy slippers...

You're probably not like the majority then...just going by the predictions and indicators that I've seen...and they are spelling a rather tight month...but when gas prices drop you can hear a colllective sigh of relief all across NA...and that usually gets the wallets lubricated...

 

[truckmanson]

little of subject, but I just read on cnn.com that the government is thinking of helping citibank even more now, the article stated they already got 25 billion out of the 700 billion package, maybe it is just me but if you just gave them a bailout and they are still struggling then why look at another one. now for the relevance, what if they help the big 3 then they fail anyway, do you still try to help again or sit back and watch, also why help out citibank even more when they have already got what the big 3 are asking for combined. just confuses me when I read it.

 

[Ozwynn]

that would be like the last 50 years combinded. I got $2000 for christmas this year.

 

[Mark_88]

little of subject, but I just read on cnn.com that the government is thinking of helping citibank even more now, the article stated they already got 25 billion out of the 700 billion package, maybe it is just me but if you just gave them a bailout and they are still struggling then why look at another one. now for the relevance, what if they help the big 3 then they fail anyway, do you still try to help again or sit back and watch, also why help out citibank even more when they have already got what the big 3 are asking for combined. just confuses me when I read it.

It almost seems ludicrous to help them after they've been helped recently, but the auto industry has been helped recently also (IIRC). I don't have all the information that they have so it seems like a mystery to me too...

 

[Ozwynn]

bail out where just plain stupid to begin with......... this is just the beginning of the bail out welfare train.

 

[truckmanson]

ok I wasn't aware of all the bailouts and such everyone has received lately just thought it was weird that one company would get so much help in such a short time, I think I am gonna have to do some research

 

[v-8power]

They got something started now. Everyone will have thier hand out now wanting "free" money.

 

[OldJunk]

x2 on the free money, its like blood in the water. Whos next, the fast food ind.?

 

[Ozwynn]

lol, the fast food industry is not failing. but yeah the blood is in the water, the gov'ment sees an opportunity to take over all industries. The worst thing in history to happen financially was the Federal Reserve and the IRS.

 

[thegoat4]

so why should I, or any other hard working american be punished because the federal government can't manage its finances?

I have been on the verge of bankruptcy since I started and I am not asking for a bail out. If they are not allowed to fail then they won't learn a lesson. If the Federal government is not allowed to fail then they won't learn a lesson. I won't buy a new "big 3" because they won't pull there heads out of their collective asses and have avail. a trim level in every model for every price range, IE ala catre (I know I spelled that wrong) options. why should I have to upgrade to option package 53c1ab12g15 just to get crew cab, Cruise control, A/C, 4wd, 5spd with the biggest engine that will fit in an F150. the option up grade has shit I don't want and don't want to pay for......

I agree that there should be no bailout, but there will be, so it comes down to how best to control the damage. So far the hundreds of billions handed out have accomplished nothing. That's due to first, handing all of that money to the same idiots that caused the problem to begin with; and second, not attaching any rules to the money.

Giving anything to idiots is bad enough already, but to leave them to their own devices to decide what to do with it is even worse.