Auto Industry Bailout Bill

Around 11:10 PM PST December 11, 2008, the bailout bill for the auto industry failed in the senate.

Now it's just a waiting game. What will the White House do now, take money out of the 700B financial bailout, or just let the industry fail? Also the market will probably show interesting signs tomorrow morning.

Industries are not "too big to fail." That is arrogant of the large corporations. Hanging on to the ossified dinosaurs would appease the auto industry and its workers, but these companies will not stand for long.

And besides, back in 2001, when the dotcom bubble burst, throwing thousands out of employment in the Bay Area, why didn't California get a bailout? What makes the automakers so special, besides the number of connections its lobbyists have?

Being from the state of Michigan, I'm hoping that this money comes from somewhere.

I'll be the first to agree that the guys that run the big three are idiots, and deserve to pay for their poor business practices. But, keep in mind that it won't be them that suffer. These guys are set for life millionaires. They could retire today and never again have to lift a finger. That's the perks of giving your self multimillion dollar bonuses every year on top of your multimillion dollar salary.

The real losers of the auto industry collapse will be the state of Michigan and its residents. We're already in deep economic trouble. All of the troubles that are surfacing across the country in the last few months; loss of jobs, poor economy, etc. have been happening in Michigan for years now. The state is trying its hardest to find other means to base its economy on, but a large chunk of our economy is still based on the auto industry.

I see a big problem with these "banker bailouts" and "car industry bailouts."

Look, I've never voted Democrat in my life. I am an old-fashioned guy, but at this point the Republicans are making me puke. How the pineapple did gas prices in my city go from $1.50 to $4.50 and then down to like 1.60 in the span of 8 years? These corporate fat-cat bastards milked the whole country for cash to feed their corporate friends, and now with this bail-out crap they're trying to do it again.

I certainly see how the CEOs themselves are multi-millionaires and won't be harmed by their companies going down the toilet. BUT bailing them out pumps taxpayer money -- our money -- into the arms of for-profit corporations that want to take our money anyway, in the form of our earnings. Except they didn't earn it; they're getting it through incompetence. Why the hell should I pay money to bail out Morgan Stanley when if I am paying them money it should be for their services, or for their stock? I don't even have say in the matter! Who does? My Congressman, conveniently purchased by Morgan Stanley during elections. So, Morgan Stanley and Ford purchase Congressmen and Senators, who then give them tax money. The whole idea is prejudiced towards the big companies. If you or I get sick and are unable to work, the government will give us unemployment and welfare. We'll live in a pomegranatety neighborhood, below the poverty line, barely able to survive. Why should these corporations get preferential treatment? Take their employees, give those employees to a competent company, (maybe FUND that competent company, eh?) and let Ford and GM say BYE BYE.

I live in Detroit and this is having a HUGE impact on all of us. Some of my family have lost jobs due to all this crap going on. The auto industry is what use to make Michigan run. Without it we are going to become a big pomegranate hole, even more than we are right now.

I want the bailout to go through and I also think that the CEO's and upper management should be let go and new people brought in that KNOW how to run a company. Why should all the workers suffer for the stupidity of the upper management? It's not their fault. They were just doing what they were told to do.

I live in Detroit and this is having a HUGE impact on all of us. Some of my family have lost jobs due to all this crap going on. The auto industry is what use to make Michigan run. Without it we are going to become a big pomegranate hole, even more than we are right now.

I want the bailout to go through and I also think that the CEO's and upper management should be let go and new people brought in that KNOW how to run a company. Why should all the workers suffer for the stupidity of the upper management? It's not their fault. They were just doing what they were told to do.

Couldn't they just bring in another company to Detroit in a deal which gave them money to operate there in exchange for employing the Detroit Autoworkers?

My concern is that the CEO and upper management may not be the only ones that caused it all; that it might be their whole company philosophy, which would mean the rotten elements would survive despite the upper-tier people being let go. For example, promote a middle-tier manager which wasn't fired to upper-tier, and you may have the same old situation.

The auto companies weren't always so bad though. When my dad worked for GM back in the 60's things were great with the company. I think they just need to gut the entire upper management and start fresh with people who actually know what they are doing. I also think they they need to bring in people who can change the companies philosophy like you said. As for the people in the plants, it's not their fault, and they are the one's that are going to be hurting here the most.

To be honest, no one really wants to bring their companies to Michigan since we are in such an economic distress. No one knows if their companies will succeed or not.

Couldn't they just bring in another company to Detroit in a deal which gave them money to operate there in exchange for employing the Detroit Autoworkers?

That really wouldn't solve any problems though, if it were possible. Auto factories employ thousands of people. In this economic crisis, not too many companies are looking to create that many new jobs.

If new companies are going to be brought into a state, specifically Michigan, it shouldn't be to replace existing jobs. New companies should be brought in to make new jobs.

Michigan has a ridiculously high unemployment rate already. That's why keeping the auto industry alive is so important here. We already have enough people fighting over what few jobs exist out there right now. Killing off the auto industry would only create more job seekers.

x_x

I am sorry to hear that.

The thing about these bailouts is that the Congress (and presidency) are outgoing. Once Obama and the new congress come in, things can be fixed because those guys will have legitimacy, being voted in.

Its sad to say, but, unfortunately two of the big three (GM, Chrysler) don't have that much time.

This first bailout was intended to provide enough money to these companies so they could continue to operate long enough so that the new administration could get into place.

President elect Obama has said that he has full intentions of providing funding to keep the big three alive, but right now he's powerless to do so.

Michigan has a ridiculously high unemployment rate already.

A few weeks ago in the Lansing State Journal, it was listed at 9.7%, and this is before the upcoming layoffs from the automakers.

I am torn between them recieving a bailout. I don't because I want to see these compaines change thier ways, and from what I hear, it's the UAW that is hurting these companies. Their refusal to lower wages for employees caused the bailout to be voted down. Also, unions create unproductive workers. I know because I have family that works for GM, what do they do there? I have no idea, I just know they get drunk at work. How they get cars built is beyond me.

But I also don't want to see these companies fail. I've seen GM plants close in my city (Lansing), and I would hate to see the others close. It was hell for me to find a job as it is, it took me a year to get a crummy $7.50 an hour part time job which I start next week. If these automakers fall, thats more competition in an already crappy job market. The other thing I don't want happening is other cities going the way of Flint, Mi... Kevin0215 and Katie know what I am talking about.

Its sad to say, but, unfortunately two of the big three (GM, Chrysler) don't have that much time.

This first bailout was intended to provide enough money to these companies so they could continue to operate long enough so that the new administration could get into place.

President elect Obama has said that he has full intentions of providing funding to keep the big three alive, but right now he's powerless to do so.

Good ole american Capitalism
Oh wait..
since that is government purchase of shares ....
That is pseudo-socialism?
Well as long as the government doesn't make any demands...

Good ole american Capitalism
Oh wait..
since that is government purchase of shares ....
That is pseudo-socialism?
Well as long as the government doesn't make any demands...

To be honest, I've heard more than a couple people describe Obama as a socialist. Gun lobbies and the KKK aside as conservative elements, I think we can do better than, say, the French system of government and I hope it doesn't come to that.

Woooo, let's give tons of money to these companies while their lots remain filled with unsold cars. BRILLIANT!

I think the government should loan money to japanese car companies (Honda and Toyota) to buy out the "Big 3".

Those guys can make a DAMN SEXY car. <3 new Honda Accord <3 soooooooooooooooooooooo sexy

I think the government should loan money to japanese car companies (Honda and Toyota) to buy out the "Big 3".

Those guys can make a DAMN SEXY car. <3 new Honda Accord <3 soooooooooooooooooooooo sexy

Japan should be annexed to become the 51st State. Japanese culture shall filter down to the other 50, filling them with the epic fail of Naruto and Hello Kitty, and graphically pornographic literature on commuter trains.

Japan should be annexed to become the 51st State. Japanese culture shall filter down to the other 50, filling them with the epic fail of Naruto and Hello Kitty, and graphically pornographic literature on commuter trains.

*dreams*

How awesome life would be if I could walk down the street and run into a tofu shop, anime store, and an internet cafe all next to each other. And go to school with hot japanese school girls . I watch wayyyy to much anime lmao

*dreams*

How awesome life would be if I could walk down the street and run into a tofu shop, anime store, and an internet cafe all next to each other. And go to school with hot japanese school girls . I watch wayyyy to much anime lmao

Catholic schoolgirls are way more horny than Japanese schoolgirls. That's cause the Catholic school girls are taught that secks is wrong, while the Japanese schoolgirls can get teh pron out of vending machines.

tl;dr in my strictly ethnocentric opinion, West > East

In all seriousness, from what I read about the Japanese school system, I think we should count our lucky stars that we never went through it... what those kids are subjected to is sick.

*dreams*

How awesome life would be if I could walk down the street and run into a tofu shop, anime store, and an internet cafe all next to each other. And go to school with hot japanese school girls . I watch wayyyy to much anime lmao

Sounds like you have Yellow Fever.

The first bailout was a complete waste, basically, its like this scenario:

-Credit Companies to Government "OMG! Theres a fire!!! Quick, give us something to put it out!!!"

Government to Credit Companies "Well, we cant really give you water... Here!!! Take this money! You put enough on it, it should smother out the fire!!! But you have to pay us back when the fires out"

Credit Companies to Government 10 years later "We need a few more years to pay back the money you gave us for that fire... hold on a sec, gotta take this call...'Yes yes, make sure theres lots of wine and gifts in my room...yes yes, all the employees will be golfing...it'll cost $200,000 for the company trip?... OK thats fine, just use the spare money from the...ahm, i mean use the "stock"money we have'...Anyways, yea, a few more years to pay it back, we swear."


Now the auto companies are a bit of a different story, but they still backed themselves into the shitter. Their cars havnt always been the best that they could be, and the costs and value were way below other companies from other countries (mainly Japanese). But there are far worse consequences if the auto industry fell.


~FUN FACTS!!~

Just after the 700 Billion dollar bailout, more than 50% of US Americans were not opposed to kicking all members of Congress out and re-picking new members.

The average wage (pay+value of health coverage, etc) of American auto workers was around $75+ dollars an hour, while the domestic (within the US) makers of Japanese cars make around 35+ dollars an hour. While it may seem that that is good, both the quality and the profit margins for the cars were far better with the Japanese cars than the American cars dragged and mainly made profits on large SUVs and Trucks (whose sales were tanked due to very high gas prices).

TWINKIES!!!!!!

Most politicians run on false promises to the people who elect them, often fulfilling one or two of the main issues they set out on while campaigning, but then focusing on personal agendas to further better their life in office (<<half truth/half personal opinion).

DEAD BABY JOKES!!!!!!

California has a committee in which most politicians are recommended to once their term in the state senate is up, in which they pull in over $100,000 dollars a year, while having no responsibilities and only have meetings around once or twice a year. The name of said committee is the "Garbage Waste Disposal Committee".



Laymens Terms: Credit bailout was full of FAIL, auto bail out is full of WIN...IF they pull their act together, which will be tough, because the unions are a major factor to the low profits margins (I call unions "Legal Racketeering")