Comments on: Taxpayers Between “Like a Rock” and a Hard Place on GM Bailout

By: Melissa

Melissa — Tue, 18 Nov 2008 22:11:02 +0000

I’m no expert on anything… but I was just thinking… might we not solve a lot of problems letting failures fail? Obviously, what’s going on at the Big Three isn’t working. And we KNOW that Big Labor will never concede a cent. So… let them fail. YES, there would be consequences. Big, huge consequences that will touch everyone. What ISN’T big, huge, and affecting everyone right now?? Mortgage failures? Stock market? Everyone said we couldn’t let those happen – and despite the Bailout, folks, they’re happening. There are all sorts of consequences going on out there right now, and most of them are happening to the “little people” like me. My home lost HALF it’s value- I’m taking it up the tailpipe because we have to sell to be near ailing parents, and no one is going to bail ME out when my short-sell DOESN’T sell and I get converted to a foreclosure. I’m fine taking my knocks. I’d like to see the “big guys” take their knocks, too. On a tangent, I do think it’s funny to see massively stupid generalizations like “republicans are always in bed with big business” but I don’t see any R’s crawling under the sheets with Big Three right now, and an oddly large number of D’s who are… In fact, I hear a lot of the R leadership screaming “no!” on behalf of their fed-up, dead-broke, no-one’s-bailing-US-out constituents. (remember when no meant no?)

By: Mr. ToughMoneyLove

Mr. ToughMoneyLove — Thu, 13 Nov 2008 14:57:25 +0000

@Ted – It’s gonna happen so hold your nose.

@CJ – Agreed- If you take the time machine back to financial news in 2005, the car companies were reporting the same severe problems then. Three years later – still no plan.

@Miranda – There is a workable business model – it’s called Toyota – lower labor costs, less reliance on trucks and SUV’s for most of the profit.

@RC – Some of the retirees need to take a hit as well, particularly those that retired at age 45 with a generous pension and health benefits that are bleeding cash flow.

@Justin – Can you imagine if the Treasury ended up owning part of GM as part of a bailout? They would never get rid of the stink.

By: Justin @ FixThePig

Justin @ FixThePig — Thu, 13 Nov 2008 05:59:45 +0000

Yesterday, I basically wrote about the same exact points you highlighted in this article. I’m not against giving the Big 3 automakers a bailout, however I think that we as taxpayers need to see some upside to this deal. Furthermore I haven’t seen anything that suggests the Big 3 aren’t going to be on the doorstep of Congress in 6 months again looking for more money!

By: RC@Thinkyourwaytowealth

RC@Thinkyourwaytowealth — Wed, 12 Nov 2008 19:32:41 +0000

I have mixed feelings about this as well. While I am not in favor of bailing out car compaines for their lack of foresight and bad planning-like depending on trucks and SUV’s for way too long, they have also been hamstrung by unions for many, many years-to the point that it will be extremely difficult for them to meet the pension and health benefits of retirees’ obligations even if they survive. Without a reasonable plan with concessions from everyone involved, I am not sure if a bailout would work either.

By: Miranda

Miranda — Wed, 12 Nov 2008 18:51:17 +0000

I’m pretty much right with you on this one. Especially with regard to demanding that these companies come up with a sustainable business model. Part of the issue here is that Congress for years has been allowing the auto industry to maintain the status quo and supporting its sillier business practices. And now the transition is going to be painful. But it needs to happen. Otherwise we’ll be right back here again.

By: CJ

CJ — Wed, 12 Nov 2008 18:16:29 +0000

You hit the nail on the head. The auto industry’s problems are being caused by red flags that have been waving for years. The only real business solution is for them to go into a dormant mode by reducing production and sales staff. While pushing efforts towards R&D.

In the meantime the government can protect the people who will eventually lose their jobs by pushing the growth of new industries (solar, wind, etc) and infrastructure development (trains anyone) that have a greater potential of success right now than your grandfather’s car manufacturer.

In 2-3 years, the auto industry will be back with a vengeance and ready to ride the rising economy back to the top.

Bailing them out is a waste of resources that can only prolong this crisis.

By: Ted Murphy

Ted Murphy — Wed, 12 Nov 2008 14:52:53 +0000

I agree with much of the sentiment here. I did a post on the same subject earlier this morning.

I am happy that some people still have their senses. Bailing out the auto makers is a terrible idea.