Since obama gave Chrysler to the UAW how long will it be before they are bankrupt again?
It will be interesting to see how low the UAW will go in their salaries to prop up Chrysler
Posts Tagged ‘salaries’
Why is it Important for the government to bail out big business?
This may just be ignorance however I do not understand it. I just read a question by a top contributor of these questions complaining that he doesn’t understand why the government won’t provide funds for auto companies in order to bail them out of their possible bankruptcy. The thought of providing these businesses with tax dollars from the American public is insane. In my opinion the auto companies have no one to blame but their own greed and the way they decided to go with their business, the government would not bail out a business that the average American built and used every dime of their personal money to invest into the business, while CEO’s of the auto companies STILL are taking in millions of dollars a year and expecting the government (moreover the American people) to basically paying their salaries, when it was the direction they took in their company to blame for the problem they are in now. With exponential growth especially in business comes exponential decline and they should have taken precautions to prevent this from happening. Aside from their bad business decisions these are the same businesses that closed down factories in the United States, which were employing thousands of American workers, to move to China were labor was cheaper. This brought upon record unemployment rates in Detroit. Who in turn need government assistance to be able to provide for their families because they were screwed over by their employer. I understand that their are people who are a drain on society and are wrongfully collecting welfare but aside from those individuals Welfare helps out people WHO HAVE NOTHING and are asking for the governments help to keep a roof over their head. Another point that needs to be addressed in Auto Makers is the money that they received from big oil to not research alternative fuels, even though the impending Global Warming was a huge issue. Which means in a sense they may have screwed over the Human Race by destroying our planet. I don’t know I may just be venting but isn’t it the ethical for these CEO’s to take a money cut for the benefit of their company instead of asking for the governments help, providing that they never seemed to really truly care of the American public?
Roads???? read this if you think that our tax dollars even go to roads first off……
http://www.americanchronicle.com/articles/11028
Second off the whole idea is the current CEO’s of the business still raking in millions from their business, which is failing and asking for government help what happened to darwin and survival of the fittest, does it not pertain to business?
Could we be seeing the start of the great depression, likely to hit ’11 – ’14?
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.