Simple.
Give a 5-8K tax credit to anyone who buys a car from the big 3. This would actually SELL cars, help the consumers and the auto companies at the same time.
This would work, cost far less , and get things moving again.
But Washington does not want to take this route because there would be nothing in it for them.
The market will crash today. The dollar will follow.
US currency 2012 -- .22 long rifles.
God Help the USA.
the car companies need to change their modus operandi, buying cars that they already built does not effect that.
Buy one and they build another just like it...
Charlie:
Piecing together the URL(s) above may be more trouble than many want to go through. But it was pretty funny so I made a Tinyurl out of it.
Thanks, Bob.
The Big 3 want fast cash? Do like the old folks have to when they need government help. Cash out your assets. How many cars on the lots? Make them sell them at cost. Gotta be at least as much as they are asking for. Then treat them like a new business applying for a loan. Show a business plan that the gov. approves.
Yeah right like leys have them show us yet another plan where huge tax breaks are given upon needless purchases of gas hog suv's and trucks......
Bob,
Please define funny.
The govt. has huge balls to ask the automakers to come up with a business plan that THEY approve. When have they (the gov'.t) ever run anything efficiently? Barney Frank & Chris Dodd are gonna tell anyone how to run a business? Gimme a friggin break. Had they not opened up the mortgage mkt to millions of unqualified borrowers there might be a little more credit available to those who need it.
Seems to me that some of you don't realize just how dependent your livelihoods are on a healthy US automotive industry. I sure hope that I'm never in the position to say "I told you so".
Dodd and Franks aren't the problem Paul. The problem is the US Senator from Nissan, Bob Corker, and his band of Toyota Republicans.
JC
Paul:
Sometimes you've just got to back up and see the irony & humor in the adversities of life.
I personally think that letting all the American auto manufacturers fail would be a TOTAL DISASTER on many levels. That still doesn't mean that the site Charlie posted isn't humorous.
John,
I would suggest that this is just another facet of the same problem. Every politician in the mix is out to do "what's best" for their constituency. That is, of course, what they were elected, isn't it? Hopefully, before it all shakes out we can get some consensus on what is best for the future of our country.
Paul
Only pissed because there's nothing in it for the transplants...
Ironic when considering that were it not for of the legacy automakers with their competative pay, health care plans , retirements etc the transplants likely would never have been able to even gain a foothold.
It's been a race to the bottom, now all that's left is a handfull of Wall Street High-Rollers most of whom are now quite busily betting odds amongst themselves...
And why not?--Beings the taxpayers re-float the losers anyways...
Right BB, it does have a F**D picture .
I once made the mistake of suggesting to Bush that he use the phrase cheap energy to describe the aims of his energy policy. He gave me a sharp, squinting look, as if he were trying to decide whether I was the stupidest person he?d heard from all day or only one of the top five. Cheap energy, he answered, was how we had got into this mess. Every year from the early 1970s to the mid 1990s, American cars burned less and less oil per mile travelled. Then in about 1995 that progress stopped. Why? He answered his own question: because of the gas-guzzling SUV. And what had made the SUV possible? This time I answered. ?Um, cheap energy?? He nodded at me. Dismissed.
HTH
Sure but I don't see how wiping out the auto parts supplier vendor base in North America is going to benefit those constituents. The Big Three have nearly thirteen and a half billion dollars in payables that are either due or past due. A fair number of those vendors are in the south.
Sales aren't the issue either. Nobody is selling anything. Americans have seen a decrease in their combined net worth of about 12.3 TRILLION dollars in the last fifteen months. You can put that into perspective by considering that the entire gross domestic product of the US during the same preiod was only sixteen trillion and change. Failing to fund a bridge loan to get vendors paid will negatively impact the entire country, not just the midwest.
Not really. They were elected to do the business of the United States. They were, in fact, elected to make the hard calls in the face of public opposition when that is what's required. I do take your meaning, however, and can only reply that an undisciplined shut down of the domestic car and truck business would be equally harmful to the employees all of the manufacturers.
There is a sort of concensus today. Polling data clearly indicates that the majority of the public opposes any bail out. As sure as God made little green apples, GM and Chrysler are headed for bankruptcy and reorganization. Should that happen before a debtor in possesion financing plan can be readied, the domestic industry, the jobs provided and nearly the entire vendor base will dissapear so fast it will make your head spin.
The House and Senate will either get something done before the new year or BUsh will kust instruct Henry Paulson to write the check. Bush has stated that failure to keep the Big Three open with a bit of cash would mean that the Republican Party will end up being remembered a the party of Herbert Hoover forever. There is a lot more to it that that but he's right.
JC
Here's an upbeat outlook -
--------------- That's because you like, everyone else, keeps thinking of "their constituents," as the people that vote for them or at least live in their district/state.
When "constituent" is defined as the people and organizations that make large campaign donations, and belong to the same country club, the senators and representatives provide exceptional benefits and services.
For example, if I am an investor that bought large quantities of GM bonds for pennies on the dollar and offsetting CDS derivatives, I would be pushing in every possible way for GM to go bankrupt, or at least default on their bonds, as this makes the bonds w/the CDS derivatives worth their face value, and generates huge profits for me [and screw everyone else]. Wiping out Detroit and/or the vendor base that wipes out Detroit makes perfect sense in this case.
FWIW -- I keep falling into this trap my self by asking how could they [ --- fill in the blank --- ]. Just follow the money. This is not to say they are necessarily evil people, just thoughtless and greedy, as in "let them eat cake," with a large helping of "invidious comparison" on the side, where you having less is almost as good (maybe better) than me having more. This is particularly true where the "constituents" are rich old goats, and their envy is for things that money can't buy like youth, vigor, and family relationships.
Unka' George [George McDuffee]
------------------------------------------- He that will not apply new remedies, must expect new evils: for Time is the greatest innovator: and if Time, of course, alter things to the worse, and wisdom and counsel shall not alter them to the better, what shall be the end?
Francis Bacon (1561-1626), English philosopher, essayist, statesman. Essays, "Of Innovations" (1597-1625).
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