The auto bailout issue has entered into the realm of absurdity. It appears Congress will allow the auto companies to borrow from the $25 Billion fund originally voted in to help the auto companies re-tool their factories to produce more fuel efficient autos. Nancy Pelosi said the money would be repaid back into the fund.
This is the absurdity. The auto companies are not selling any cars so they cannot make any money. The loans they so desperately need are for what; to keep operating? If you are not selling any product, why do you have to keep operating?
How are you going to pay back these loans if you are not making any money and don’t know when you will start to make money.
We are in a depression that will go on for at least another year and maybe longer. More and more people will be unemployed and those people will only buy what they need to survive. That means many businesses will go out of business and not just auto companies. Is the government going to bailout all businesses that are no longer viable?
The latest unemployment figures scared Congress and they did not want to add auto workers to the list. Well, they will join the list anyway because there will be nothing for them to do but if you give the auto companies operating cash, they will keep paying their workers to do nothing like they have for years. If you’re going to do that for the auto workers, shouldn’t you do that for all workers in America?
Here is even a better absurdity. Chrysler is owned by a private company (CYBERUS); they are not a publicly held (stocks) company. One Senator asked Nardelli (Chrysler CEO) to ask CYBERUS for more money; after all they are the owners. Nardelli said he asked and they told him NO; so the taxpayers will loan money to a private company who’s owners refuse to lend it money?
People here in Michigan are screaming that we need to save our auto industry. Well, the Big 3 are not our auto industry, they are American auto manufacturers that are part of the U.S. auto industry. If you read the November auto sales statistics, you will have seen that ALL auto companies took a hit; people are not buying cars period, not just certain cars. ALL auto companies will suffer but it appears only the American Big 3 will die (Ford still has a chance at survival).
ALL auto companies will try to survive until demand picks up and here is the big secret that will get us out of depression: DEMAND for products and services.
More on the other side…
This is the absurdity. The auto companies are not selling any cars so they cannot make any money. The loans they so desperately need are for what; to keep operating? If you are not selling any product, why do you have to keep operating?
How are you going to pay back these loans if you are not making any money and don’t know when you will start to make money.
We are in a depression that will go on for at least another year and maybe longer. More and more people will be unemployed and those people will only buy what they need to survive. That means many businesses will go out of business and not just auto companies. Is the government going to bailout all businesses that are no longer viable?
The latest unemployment figures scared Congress and they did not want to add auto workers to the list. Well, they will join the list anyway because there will be nothing for them to do but if you give the auto companies operating cash, they will keep paying their workers to do nothing like they have for years. If you’re going to do that for the auto workers, shouldn’t you do that for all workers in America?
Here is even a better absurdity. Chrysler is owned by a private company (CYBERUS); they are not a publicly held (stocks) company. One Senator asked Nardelli (Chrysler CEO) to ask CYBERUS for more money; after all they are the owners. Nardelli said he asked and they told him NO; so the taxpayers will loan money to a private company who’s owners refuse to lend it money?
People here in Michigan are screaming that we need to save our auto industry. Well, the Big 3 are not our auto industry, they are American auto manufacturers that are part of the U.S. auto industry. If you read the November auto sales statistics, you will have seen that ALL auto companies took a hit; people are not buying cars period, not just certain cars. ALL auto companies will suffer but it appears only the American Big 3 will die (Ford still has a chance at survival).
ALL auto companies will try to survive until demand picks up and here is the big secret that will get us out of depression: DEMAND for products and services.
More on the other side…
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ReplyDeleteDid you know there is a bailout for you? Probably not, but Obama is making it better for us already! Most people don't realize how much money there is out there. During economic times like this, there is more money to be had than ever. Because of the bailouts and economy, lenders are bending over backwards to bail you out too. Believe it or not, there is people getting tons of cheap money nowdays to start businesses, buy homes, pay off debt, and more. Bailout is for YOU