What a line of BS. 1. Bankruptcy won’t cause them to cease operations, it will allow them to get out from under debt and absurd union contracts.
2. What good does it do to prop up GM and Chrysler, if their cars just continue to pile up as unsold inventory. Unless the government wants to start buying GM cars, then throwing money at GM without first making them competitive will accomplish nothing except taking more money out of the pocket of the Americans that actually produce something.
3. If GM, Chrysler & Ford do stop making cars, the American people will still need the same number of cars next year, they will simply get them from Toyota, Honda, Hundyi, VW, BMW etc. All the transplants have excess capacity and can hire more workers and produce more cars. Those companies supplying GM can compete for the business of the profitable car companies.
4. Sell your Socialism somewhere else, we’re already well stocked up, and remember. Socialism always generates the exact opposite of its stated intent. If the government throws a hundred billion at Detroit, in five years we will be in the exact same place with 100 billion of additional debt we can’t pay.
“Bankruptcy won’t cause them to cease operations, it will allow them to get out from under debt and absurd union contracts.”
Exactly. I saw another article posted here in which they reported that 51% of Americans surveyed said they would not buy a car from a company in bankruptcy, and I suspect this is because the majority of Americans don’t understand how Chapter 11 bankruptcy really works.
This is moot because I can’t afford a new car anyway, but I’d be more inclined to buy a vehicle from a Big 3 company undergoing reorganization than I would be if they were taking a government handout.
1. Bankruptcy won’t cause them to cease operations, it will allow them to get out from under debt and absurd union contracts.
2. What good does it do to prop up GM and Chrysler, if their cars just continue to pile up as unsold inventory. Unless the government wants to start buying GM cars, then throwing money at GM without first making them competitive will accomplish nothing except taking more money out of the pocket of the Americans that actually produce something.
3. If GM, Chrysler & Ford do stop making cars, the American people will still need the same number of cars next year, they will simply get them from Toyota, Honda, Hundyi, VW, BMW etc. All the transplants have excess capacity and can hire more workers and produce more cars. Those companies supplying GM can compete for the business of the profitable car companies.
4. Sell your Socialism somewhere else, we’re already well stocked up, and remember. Socialism always generates the exact opposite of its stated intent. If the government throws a hundred billion at Detroit, in five years we will be in the exact same place with 100 billion of additional debt we can’t pay.
The few minutes it took you to formulate your response is a few minutes *wasted* that you’ll never get back. The weak-link goo-goo crowd has made up their minds.
(It’ll be fun to watch them slowly twist in the wind, however.)
You pretty much nailed it. The bailout is socialism, pure and simple. Many freepers are buying into the “it will save the Big 3” socialist line. Only bankruptcy (ch. 11), a market solution to failed business, has any chance of doing that. The bailout will simply be the death knell of the US auto industry, as well intentioned (by the normal people, i.e. suckers) socialism always is...
Who is going to pay $30K for a GM vehicle in January with the probability that, even with a few billions of our dollars, they will not last long enough to honor the warranty? Not I.
Just to add to your excellent post: The counter-argument by certain people here is that nothing is served by letting the Big 3 “die.” First, chapter 11 isn’t death, it is a chance for re-birth. Second, unless the Big 3 get out from under their 2,000+ pages of UAW work rules, restrictions, and insane benefits, THE BIG 3 ARE ALREADY DEAD.
GM in particular, their socialism experiment (i.e. generous Pension and Retiree Health Care ) has failed. Their Liabilities due to actuaries "blowing it" ( in either 84' or 87') thinking many of the retiree's would be dead by now is the main cause they have no capital to retool etc.
The question I pose to you, do you want to give them a life line to the VEBA to off load this Socialism to the Unions in 2010, or do you want the Obamster and the Democratic House and Senate absorbing the retirement and bennies for 1/2 million people who ain't gonna take .30 cents on the dollar, like they would in Chapter 11.
Especially if the product going forward is as good as they are hinting since at least GM and Ford are due for a bunch of new product in the next 12 months which might put wind in their sales, such as the "Volt".
Take your pick.....