Growing up in the suburbs of the Motor City, I have been embedded with a few simple rules. 1.Always cheer for the Red Wings! 2. Never go to Detroit at night and 3. Drive American. In the past, these rules have been pretty easy to follow. The Wings just won the cup, so how could I not cheer for them. I can’t navigate my to Detroit in the daytime so I’ll never make it at night and I can’t afford a new car so I’ll have to stick with my Ford. In the future, these rules might be a little harder to follow since the big three are in deep trouble. Most of Metro Detroit’s work force are employed by the Big Three so naturally, the numerous layoffs and buyouts have been a huge subject of local concern.
Michigan’s economy rides with the auto industry. Through hills and valleys, Michigan succeeds or suffers along with the Big Three. Since the auto industry, especially the Big Three, hasn’t been doing well, Michigan as taken a direct hit. The economy has taken a turn for the worst causing a shortage in jobs and a meltdown in the housing market. Its not hard for me to see the effect this has on my friends and family. Every time an auto maker announces another round of cuts, grim faces start to pop up all around the place. Its painful to watch the once proud community fade along with the car makers.
Although a government bailout would prevent the automakers from going into bankruptcy now, it would only delay the inevitable. The government should provide more funds and resources to allow for the Big Three to further develop hybrids and alternative fuel vehicles. Some might argue that a government bailout is unfair in a consumer driven market, but this is not the case. Having more auto makers only puts more pressure on the other to effectively research and produce alternative fuel vehicles. The overall result would be a vast amount of non-gasoline dependant vehicles manufactured at a cheaper price that would be more affordable for the average consumer.
Consumers will eventually see more options of lower priced hybrid vehicles if the government enacts assistance for the Big Three. Communities and families that are built and depend on the domestic automakers will also benefit greatly. Although a government bailout is not the most fair of things to do, it would restore a once joyful community in a small town called Canton.

thanks

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Consumer spending has come to a grinding halt. Nobody except for fools are spending money on shopping, retail or new cars. Many retailers, car dealers, restaurant chains etc etc are going bankrupt on daily basis and thousands lose their jobs daily. October alone saw a loss of 240000 jobs.

But how can the consumer spend, when there is no job security anywhere? A lot of recent college graduates continue staying unemployed despite high GPA of 3.5 or beyond. A friend of mine who has bachelor in math with 3.5 gpa is unemployed and a second friend with bachelor in finance with 3.7 gpa is unemployed too. And they both are thinking of filing bankruptcy. This is how bad things are.

And the bailout does not improve job market and neither does it address the problem of how to make the consumer spend more. So then how will economy be fixed?

Giving 0 billion to failed companies does not do anything because they will fail again, since consumer spending is very low now. Fannie Mae, AIG again reported billions and billions in losses despite being bailed out. If General Motor is bailed out again after few months it would need second bailout.

Why don’t they get it that bailout is not the answer to the economic crisis?

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When Ronald Reagan shuffled the nation by encouraging us to embrace FreeEnterprise we all "felt good" and it worked. But it grew into a corporate capitalism since then, so hated by Karl Marx and now look what it has become: BigBanks need a bailout.They get it at a low %, while our credit card interest rates remain high. Is that how capitalism is supposed to work?
The Washington-based Center for Economic and Policy Research calculated that the below-market rates offered by the Federal Reserve to JPMorgan Chase — and 17 other large banks — accounted for 41 percent of the profits at Dimon’s banks.

They accounted for 47 percent of the profit at Bank of America, the group said.

A report by the CEPR compared the rates the Fed charged large banks to the rates it charged smaller banks.

The difference amounted to 0 for each of the 120 million families in the country — or roughly billion.

"Most people, if you asked them what do you want to do with 0, I doubt the answer would be, ‘Why don’t we subsidize the large banks?’" said Dean Baker, the group’s co-director. "A lot of things we think are important cost much less — billion annually would go a long way to subsidizing health care [costs for American families]."

Financial experts blasted the subsidy as corporate welfare.

"It rewards their irresponsible behavior in the past and encourages them to do the same thing again in the future," said Simon Johnson, a professor at MIT’s Sloan School of Management.
If a company fails it goes bankrupt. But if a corporation fails it gets a bailout. What are the benefits to taxpayers if any?
When corporations form by buying up large amounts of small companies they should be made clear that if ever in the future they fail, they ought to sell off the smaller entities before begging for bailouts. And guess what, this is EXACTLY what happening now (in Europe) after the public’s outrage.

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http://news.yahoo.com/s/ap/20081120/ap_on_go_co/auto_bailout_what_s_next#full

If General Motors will go bankrupt by the end of December and are burning through Billion a month, then how is a Billion government bailout spread across the 3 auto manufacturers going to help them stay afloat that much longer?

Seems they want their share of handouts like the rest of these companies.

Just one final question……….Where does the line start? I want my share too.

Technorati Tags: auto manufacturers, bailout, general motors, news yahoo, yahoo

I believe they should.Years of poor management has gotten them here.What is your opinion
I ask this in election due to the fact of Obama could stop this with more bailout,Even though I think by now he should know bailouts don’t work
WE have a toyota and a Honda so far have been great cars.I have had a saturn,olds,and a gmc that were crap
i have a cr-v and I love it

Technorati Tags: bailout, cr, gmc, great cars, honda, poor management, saturn, toyota

http://www.youtube.com/watch?v=nAGzLfmV4Ks

"The 0 billion bailout for Wall Street, is driven by fear not fact. This is too much money in too a short a time going to too few people while too many questions remain unanswered.

Why aren’t we having hearings on the plan we have just received? Why aren’t we questioning the underlying premise of the need for a bailout with taxpayers’ money? Why have we not considered any alternatives other than to give 0 billion to Wall Street? Why aren’t we asking Wall Street to clean up its own mess? Why aren’t we passing new laws to stop the speculation, which triggered this? Why aren’t we putting up new regulatory structures to protect investors? How do we even value the 0 billion in toxic assets?

Why aren’t we helping homeowners directly with their debt burden? Why aren’t we helping American families faced with bankruptcy. Why aren’t we reducing debt for Main Street instead of Wall Street? Isn’t it time for fundamental change in our debt based monetary system, so we can free ourselves from the manipulation of the Federal Reserve and the banks? Is this the United States Congress or the board of directors of Goldman Sachs? Wall Street is a place of bears and bulls. It is not smart to force taxpayers to dance with bears or to follow closely behind the bulls."
jeremy: Yeah, that’s a good speech, too!

Technorati Tags: american families, bailout, bankruptcy, bears, board of directors, bulls, debt burden, federal reserve, fundamental change, goldman sachs, manipulation, monetary system, new laws, premise, reducing debt, regulatory structures, speculation, taxpayers, united states congress, wall street

With subprimes coming to an end (about time), Now it’s time for the Option-arms and Alternative A-papers, which will tack on another trillion or so in write offs for companies which are already tinkering on bankruptcy (even with the bailout)

then in about 2-3 years, we’re going to see the credit crash as those millions of americans who have tens of thousands in credit card debt and other non-mortage loans default, especially if they start to lose jobs / give up as buying power decreases.

Heck, In my ranked MBA program, a vast majority of my fellow students have 10-25k in credit card debts which they just plan on paying off with their "high paying" MBA jobs- which they aren’t getting because everyone has hiring freezes. If these are supposed to be some of the "smart ones" among us, what do you make of the rest?

Although in the financial discussions, there seems to be backlash against the media for saying that the "majority of americans" are in MAJOR debt, as in fact it’s only a "very small percentage" (44%). Now, these articles are literally stating 44% is a small percentage- and that 55% are being very good trying to pay their bills off in time. However, I also read that the majority of bankruptcy’s are people who "do not spend wildly, but are in debt to to other reasons such as loss of jobs or health problems". If the job market turns downwards, buying power decreases, and salaries don’t keep up with inflation would that not suggest that even those who "try" are likely to rack up more debt? and isn’t it likely that this 44% is likely to increase to 50, 55%? In this case we are saying atleast almost 50%, and potentially more than 50% are likely to run into major credit and debt issues?

Then with credit card companies such as American Express already tinkering on bankruptcy, a CC card company going under would only add to the fun.

That in itself could be the next great depression. What do you think?

Now I could be taking this a little far, and I don’t expect anyone to agree with me beyond this, however, I raise yet another question- If over 1/2 of america loses their buying power and credit-worthyness all together, based on what I see in the Government now, I would presume that they would feel the need to step into action, and bailout the individuals- and in this situation, it seems like the only action which they could do is to take control over many aspects of the country, essentially creating an extreme socialist culture overnight.

Although I have my savings spread in Euros, Rupees, and Dollars, the intense globalization occurring as of the last 10 years means that money isn’t safe anywhere. So now I’m thinking maybe I should just rack up 30k in debt since I’ll be in the doghouse with everyone else anyway, and 5-10 years from now we’re all going to be in the same position whether we have 000 in the bank, or -000 in our credit history.

Technorati Tags: 25k, 3 years, american express, backlash against, bailout, credit card debt, credit card debts, debt issues, fellow students, freezes, great depression, health problems, heck, inflation, mba program, mortage loans, option arms, salaries, smart ones, trillion

Growing up in the suburbs of the Motor City, I have been embedded with a few simple rules. 1.Always cheer for the Red Wings! 2. Never go to Detroit at night and 3. Drive American. In the past, these rules have been pretty easy to follow. The Wings just won the cup, so how could I not cheer for them. I can’t navigate my to Detroit in the daytime so I’ll never make it at night and I can’t afford a new car so I’ll have to stick with my Ford. In the future, these rules might be a little harder to follow since the big three are in deep trouble. Most of Metro Detroit’s work force are employed by the Big Three so naturally, the numerous layoffs and buyouts have been a huge subject of local concern.
Michigan’s economy rides with the auto industry. Through hills and valleys, Michigan succeeds or suffers along with the Big Three. Since the auto industry, especially the Big Three, hasn’t been doing well, Michigan as taken a direct hit. The economy has taken a turn for the worst causing a shortage in jobs and a meltdown in the housing market. Its not hard for me to see the effect this has on my friends and family. Every time an auto maker announces another round of cuts, grim faces start to pop up all around the place. Its painful to watch the once proud community fade along with the car makers.
Although a government bailout would prevent the automakers from going into bankruptcy now, it would only delay the inevitable. The government should provide more funds and resources to allow for the Big Three to further develop hybrids and alternative fuel vehicles. Some might argue that a government bailout is unfair in a consumer driven market, but this is not the case. Having more auto makers only puts more pressure on the other to effectively research and produce alternative fuel vehicles. The overall result would be a vast amount of non-gasoline dependant vehicles manufactured at a cheaper price that would be more affordable for the average consumer.
Consumers will eventually see more options of lower priced hybrid vehicles if the government enacts assistance for the Big Three. Communities and families that are built and depend on the domestic automakers will also benefit greatly. Although a government bailout is not the most fair of things to do, it would restore a once joyful community in a small town called Canton.

thanks

Technorati Tags: alternative fuel vehicles, auto industry, auto maker, auto makers, automakers, bailout, buyouts, car makers, deep trouble, direct hit, driven market, gasoline, hills and valleys, housing market, hybrids, layoffs, meltdown, metro detroit, proud community, red wings

Can you help with the grammar mistakes in this essay please?

Growing up in the suburbs of the Motor City, I have been embedded with a few simple rules. 1.Always cheer for the Red Wings! 2. Never go to Detroit at night and 3. Drive American. In the past, these rules have been pretty easy to follow. The Wings just won the cup, so how could I not cheer for them. I can’t navigate my to Detroit in the daytime so I’ll never make it at night and I can’t afford a new car so I’ll have to stick with my Ford. In the future, these rules might be a little harder to follow since the big three are in deep trouble. Most of Metro Detroit’s work force are employed by the Big Three so naturally, the numerous layoffs and buyouts have been a huge subject of local concern.
Michigan’s economy rides with the auto industry. Through hills and valleys, Michigan succeeds or suffers along with the Big Three. Since the auto industry, especially the Big Three, hasn’t been doing well, Michigan as taken a direct hit. The economy has taken a turn for the worst causing a shortage in jobs and a meltdown in the housing market. Its not hard for me to see the effect this has on my friends and family. Every time an auto maker announces another round of cuts, grim faces start to pop up all around the place. Its painful to watch the once proud community fade along with the car makers.
Although a government bailout would prevent the automakers from going into bankruptcy now, it would only delay the inevitable. The government should provide more funds and resources to allow for the Big Three to further develop hybrids and alternative fuel vehicles. Some might argue that a government bailout is unfair in a consumer driven market, but this is not the case. Having more auto makers only puts more pressure on the other to effectively research and produce alternative fuel vehicles. The overall result would be a vast amount of non-gasoline dependant vehicles manufactured at a cheaper price that would be more affordable for the average consumer.
Consumers will eventually see more options of lower priced hybrid vehicles if the government enacts assistance for the Big Three. Communities and families that are built and depend on the domestic automakers will also benefit greatly. Although a government bailout is not the most fair of things to do, it would restore a once joyful community in a small town called Canton.

thanks

Technorati Tags: alternative fuel vehicles, auto industry, auto maker, auto makers, automakers, bailout, buyouts, car makers, deep trouble, direct hit, driven market, grammar mistakes, hills and valleys, housing market, hybrids, layoffs, meltdown, metro detroit, proud community, red wings

This is what I think about the automaker bailout:
The big 3 need to throw away old baggage of inefficient operations, high executive pays, and high union powers.

My suggestions are:

- Declare bankruptcy (only option to cut all ties with inefficiency)
- Merge operations and create a new company
- Sell off plants to foreign automakers to create more capital(to Hyundai, Kia, or any company that is looking to have production in US), this way workers can still keep their jobs but just with different bosses

What is your take?
I believe they are trying to go green but they are late compared to Japanese manufactures.
If an restructuring was to happen, I say screw it with the half-ass green-wannabe hybrids and just go green. Set goals to produce electric, bio-fueled cars and phase out existing cars.

And as far as capitalist governments go.. well.. the companies are US companies..
*Meg

The cost of bankruptcy to the economy and the auto workers and the auto industry is astronomical.. which i understand, but without an revolution will things get better?

Any suggestions for the problem?

Technorati Tags: auto industry, auto workers, automakers, bailout, bankruptcy, economy, fueled cars, governments, hybrids, hyundai, inefficiency, inefficient operations, jobs, kia, meg, plants, restructuring, ties

Excerpts:

This bailout was a terrible idea. Here’s why.

The current mess would never have occurred in the absence of ill-conceived federal policies. The federal government chartered Fannie Mae in 1938 and Freddie Mac in 1970; these two mortgage lending institutions are at the center of the crisis. The government implicitly promised these institutions that it would make good on their debts, so Fannie and Freddie took on huge amounts of excessive risk.

Worse, beginning in 1977 and even more in the 1990s and the early part of this century, Congress pushed mortgage lenders and Fannie/Freddie to expand subprime lending. The industry was happy to oblige, given the implicit promise of federal backing, and subprime lending soared.

This subprime lending was more than a minor relaxation of existing credit guidelines. This lending was a wholesale abandonment of reasonable lending practices in which borrowers with poor credit characteristics got mortgages they were ill-equipped to handle.

The obvious alternative to a bailout is letting troubled financial institutions declare bankruptcy. Bankruptcy means that shareholders typically get wiped out and the creditors own the company.

Bankruptcy does not mean the company disappears; it is just owned by someone new (as has occurred with several airlines). Bankruptcy punishes those who took excessive risks while preserving those aspects of businesses that remain profitable.

In contrast, a bailout transfers enormous wealth from taxpayers to those who knowingly engaged in risky subprime lending. Thus, the bailout encourages companies to take large, imprudent risks and count on getting bailed out by government. This "moral hazard" generates enormous distortions in an economy’s allocation of its financial resources.

http://www.cnn.com/2008/POLITICS/09/29/miron.bailout/index.html?iref=mpstoryview

Why is this not considered as being an option? Why must the taxpayers foot the bill for bad decision making?

Technorati Tags: abandonment, bad decision, bailout, bankruptcy bankruptcy, cnn, distortions, enormous wealth, excessive risk, excessive risks, fannie freddie, fannie mae, federal policies, financial institutions, freddie mac, lending institutions, miron, moral hazard, mortgage lenders, mortgage lending, poor credit

The UAW union has stopped the bailout of the autoworkers and now theres a chance the automakers will go bankrupt…Hmm guess the UAW will love their UNEMPLOYED workers then huh. The Unions are the reason US Autoworkers arent competitive Forcing companies to pay their workers 2 to 3x More than the Forgien Makers .. How Are Us makers supposed to compete with that?

Technorati Tags: automakers, autoworkers, bailout, uaw union, unemployed workers, unions