The stupidity of the Federal Government: Bailout Chapter Options

[Dogmeat]

So now the auto companies *cough cough cough* UAW *cough cough cough* expect the feds to fork over $25,000,000,000 to them because they just bailed out a bunch of their buddies in the financial sector for being a bunch of complete fuckups.

Now, the Republicans are opposing the bailout of the UAW, because, the UAW is not Republican.

The auto makers are offering the government an "equity stake" in them if they will give them loans.

I think this is what's already happened with the bailout of all the banks, right?

So in other words, our government is monumentally incompetent and we're al going to die.

[blaarg]

I think it is just difficult for the government to determine when and where to draw the line on these bailouts.

It seems like a split decision is with the Auto Industry, so maybe it is there...

[Spectatrix]

All these bailouts are ridiculous, imo. Yeah, we'd suffer some serious short-term pain if these places failed, but I think we'd be better off in the long run. What happens if we bail out the auto makers? Oh right, they'll keep on with the same stupid union workers designing & building the same gas-guzzling, unprofitable cars as before. LAME.

[Mommy]

unions are the automaker's biggest problem

the big 3 should file chapter 11, restructure, and do away with union workers

[Psykopath]

Goddamn bailouts.

If companies make bad business decisions, it is their own damn fault and they should face the consequences.



I KNEW those Wall Street handouts would be a slippery slope for everyone else to exploit.

[Inferia]

this is probably gonna bit me in the ass considering there's a high possibility that I might work for one of the big threes, but they way they're operating is pissing me off. stick it to them, they deserve it. Flying to DC on private jets is somewhat pissing me off, they don't need to fly on jets. One of my projects is with a "supplier" to the big three, well sorta, it's a company that does developments that the big three contributes money to. Last time we talked, the guy said that they're cutting back by firing people at random. As in someone at the executive position takes a list of people and just check off the people who they think should be fired. The next week they realize that the only person who knows how to run that machine is the guy they just fired, so this person gets hired back on an hourly basis. If this is how $25 billion is going to be used, then let them fail.

[Mommy]

The biggest problem is the union. Period. If companies cut back on union employees, they still have to pay them something like 96% of their initial wage, which is sometimes in the neighborhood of +$50/hr. The companies have problems, cut employees, and only save around 4% per person. The union is KILLING American business. Foreign automakers have manufacturing plants in the United States. In fact, my old Nissan Titan was built in Mississippi. Only one part was foreign made. Foreign auto makers are seeing massive cuts in sales as well, yet aren't having the catastrophic issues that the big 3 are having. Why? Because they pay their employees less and they don't have unionized workers.

[Dogmeat]

All these bailouts are ridiculous, imo. Yeah, we'd suffer some serious short-term pain if these places failed, but I think we'd be better off in the long run. What happens if we bail out the auto makers? Oh right, they'll keep on with the same stupid union workers designing & building the same gas-guzzling, unprofitable cars as before. LAME.

It's patently stupid to blame the manufacturers for making those cars.

There are quite a few of us, mainly those of us in the rural US, who -need- them.

You do not need a god damned 6,000-lb Escalade with a 450 horsepower motor for bling-blinging around downtown Los Angeles

That's what pisses me off the most of all about this, is the people who actually made use of these products are now going to be forced into utilizing a COMPLETLEY inferior product because of government-mandated "one-size-fits-all" mentalities.

[Spectatrix]

I'm not denying that some folks need trucks or SUVs. But their cars lag behind foreign automakers in fuel efficiency.

[chook]

It's patently stupid to blame the manufacturers for making those cars.

Then where does the free market begin?

[Spectatrix]

Then where does the free market begin?

This. Yes, there is a market for big, gas-guzzling cars, but demand has spiked for small, fuel-efficient cars. US automakers haven't adjusted to that demand, so they're struggling more than usual. Yes, they're hobbled by the horrid unions they're tied into, but failure to respond to consumer demand is a big problem too.

[Inferia]

part of me wonders why they don't want to... why wouldn't you want to make more money...

[Hartmann]

This. Yes, there is a market for big, gas-guzzling cars, but demand has spiked for small, fuel-efficient cars. US automakers haven't adjusted to that demand, so they're struggling more than usual. Yes, they're hobbled by the horrid unions they're tied into, but failure to respond to consumer demand is a big problem too.

The auto-industry was given $25B to retool and make upgrades to their facilities for fuel efficiency, what happened to that money? Use that for their bailout because if there is going to be strings attached to bailing out the auto-industry for things such as fuel efficiency then it should come from that money.

To me, if the $25B up and vanished like a fart in the wind, forget them.

[Mommy]

Chevy has a car coming out soon that is supposed to be the next gen of fuel efficiency

[Dogmeat]

I still say this is basically the Unions and their politicans fault ...