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Old 05-22-2009, 09:07 PM
 
Location: Rockland County New York
2,984 posts, read 5,122,987 times
Reputation: 1285

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Just when you thought the U.S. public had enough of the government lending newly printed dollars to failing auto companies, they opened up the peoples check book and gave them another $4 billion in loans. This brings the total to $19.4 billion in total. Nothing was even said; they just went and did it. When the government can do some thing like this and without public outcry, they know the citizens of this country are weak and absent minded.
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Old 05-22-2009, 09:45 PM
 
Location: Great State of Texas
86,093 posts, read 69,893,919 times
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And there is no payback. The "loans" will be written off.
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Old 05-24-2009, 06:36 PM
 
Location: Georgia, on the Florida line, right above Tallahassee
10,473 posts, read 13,413,505 times
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Quick - name a company that has to borrow 4 billion dollars to go bankrupt.
If this was a sitcom, they wouldn't air it. It's too implausible.

Imagine if your gambling, crack addicted girlfriend/lover/spouse told you she was leaving you forever and asked you for the money for the plane ticket to Hawaii. She might be back after she gets done with rehab. Or not.

2cnd Question: Who's the sucker in that scenario? Who's the winner and loser? I think the answer depends on whether you came off the wallet or not. THE AMERICAN TAXPAYER DIDN'T HAVE A CHOICE.

It doesn't matter. They wouldn't put this to a vote. This is Ameica. Land of the free. A place where hardy pioneers made it across bear infested, Native America with a rifle, a few bullets, some beans and some biscuits. Now, heck....you need 19 thousand million dolllars just to FAIL.

http://www.bloomberg.com/apps/news?p...FGQ&refer=news



Edit.

Which begs the question....
...

..

How much will it cost us to have them succeed?

Last edited by 70Ford; 05-24-2009 at 06:49 PM..
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Old 05-25-2009, 03:44 PM
 
Location: Orlando, Florida
43,858 posts, read 43,569,222 times
Reputation: 58603
I wonder how Ford got out of their hole....while GM keeps digging theirs bigger.
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Old 05-25-2009, 07:46 PM
 
Location: Rockland County New York
2,984 posts, read 5,122,987 times
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Quote:
Originally Posted by GloryB View Post
I wonder how Ford got out of their hole....while GM keeps digging theirs bigger.
I've wonder that also. They tend to rely on the SUV market to survive. You would think they would be suffering. Still they make a nice vehicle. My wife and I purchased a 2007 Explorer 4x4 and love the truck.
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Old 05-25-2009, 08:05 PM
 
Location: Castle Hills
1,129 posts, read 2,284,637 times
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Ford is suffering, just not on the same level as GM. They are feeling the pain too... believe that.

I think its ridiculous to give GM anymore money. It's like putting gasoline on a fire. I also don't like the fact that the American people do not have any say so in it. I think you will start seeing more tea parties soon. People are getting fed up.

GM needs to just go ahead and fail. We would be better off giving that money away to tax payers who need it. GM is going down and there isn't anything ANYONE can do about it.
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Old 05-26-2009, 04:42 AM
 
12,870 posts, read 12,773,798 times
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http://online.wsj.com/article/SB124096698307566437.html

Chrysler was bailed out directly with government loan guarantees; the Big Three all benefited from Reagan era "voluntary" quotas on Japanese imports to prop up domestic car prices. But these were temporary fixes. For more than 40 years, a 25% tariff has kept out foreign-built pickup trucks even as a studied loophole was created in fuel-economy regulations to let the Big Three develop a lucrative, protected niche in the "passenger truck" business.

This became the long-running unwritten deal. This was Washington's real auto policy.

For three decades, the Big Three were able to survive precisely because they skimped on quality and features in the money-losing sedans they were required under Congress's fuel economy rules to build in high-cost UAW factories. In return, Washington compensated them with the hothouse, politically protected opportunity to profit from pickups and SUVs.
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Old 05-26-2009, 05:23 AM
 
Location: Wouldn't you like to know?
9,113 posts, read 15,300,815 times
Reputation: 3661
Legacy costs are the problem.

Management buried their head in the sand for too long and caved to the almighty UAW. They had no backbone and let a system go that was doomed to fail. (I mean, what business model thinks you will be successful when you pay retired workers full benefits after they retire?)

Now, its too late. We knew this even as late as last year. O gave them loans late last year, but we knew they would fail...just throwing good money after bad. However, its extremely obvious that this has become political and he's taking care of his large campaign donors.

I DON'T blame Gettlefinger to be honest. He is just doing his job even though it has ruined the company. I blame management for not showing backbone and caving in to these demands.
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Old 05-26-2009, 02:37 PM
 
Location: Virginia Beach, VA
5,517 posts, read 8,765,629 times
Reputation: 2530
Quote:
Originally Posted by Stac2007 View Post
Just when you thought the U.S. public had enough of the government lending newly printed dollars to failing auto companies, they opened up the peoples check book and gave them another $4 billion in loans. This brings the total to $19.4 billion in total. Nothing was even said; they just went and did it. When the government can do some thing like this and without public outcry, they know the citizens of this country are weak and absent minded.
The citizens can do nothing other then wait for the next election cycle (assuming there is anyone to vote for other then the incumbent). The public voice is worthless. Elected federal level officials jobs are largely secure, and they are not immediatley recallable.
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Old 05-26-2009, 05:58 PM
 
12,870 posts, read 12,773,798 times
Reputation: 4446
the bottom line is this:
So far, the Obama administration has yet to lay out its magical thinking on how the homegrown auto makers are to become "viable" when required to subordinate every auto attribute that consumers find desirable in favor of achieving a passenger-car average of 39 miles per gallon by 2016. Nonetheless the answer has quietly seeped out: Taxpayers will be writing out $5,000 or $7,000 rebate checks to other taxpayers to bribe them to buy hybrids and plug-ins at a price that lets Detroit claim it's earning a "profit" on its Obamamobiles.

this is certainly a sad state of affairs for our once proud automobile industry.
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