Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
If we had let the auto industry fail as Republicans wanted, would Ohio be better off today than it is now?
Who said they would have failed without the bailouts? Oh yea, Obama. I believe Republicans wanted auto industry to go through bankruptcy, which would have made them a stronger company. You know, like most businesses do. Well, unless that business is providing the votes for the Dem party, by way of union dues.
Other companies would have surely snapped up those car plants because that's what happened in Detroit and Flint, right?
Right?
Right wing garbage.
Ya, that's what happened in a town near me, too. A GM plant that employed over 1,500 was closed due to the bankruptcy downsizing and it just got torn down this summer. No one was standing in line to buy the plant or the machines inside. Most of them went off to the scrap dealers. Critics in this thread just can't seem to understand how tight the banks were holding on to their money back then and still are to a certain extent. The whole world was on the verge of economic collapse.
The only fact your analysis omits is that General Motors is operating in the black.
And that's because GM is dredging the bottom of the barrel to sell cars to sludge.
Quote:
Originally Posted by BajanYankee
As I said before, when you bet against the American worker, YOU LOSE.
I'll win.
Watch what happens...
Mircea
Quote:
Originally Posted by Mathguy
I appreciate most of your posts since you tend to be very well informed.
Since I work peripherally to this situation, the sub-prime car loans are not the problem that the home loans are. They have grown but are still nowhere near the pre-collapse levels so don't get caught up into the *surge* because they shrank to a TINY amount and are now just rebounding.
I guess we'll see what happens when the FICA tax holiday ends and Obama Tax Cut ends and people can't make car payments.
No one is opposed to sub-prime loans.
The issue here is the huge number of sub-prime loans that GM is granting, and in addition the sheer number of extreme sub-prime loans that fails to impress analysts [and myself].
We're talking people with FICOs below 540......that is an extraordinary risk and stock-holders are right to be concerned and vigilant.
And if people are spending money on car payments then....they can't be spending that money elsewhere.
You might want to consider that.
Not impressed with GM....
Mircea
Quote:
Originally Posted by pghquest
not quite.. they are operating due to the tens of BILLIONS in tax credits GM is writing down yearly.
Yeah, that, too.
I think that's why they don't want to give up Opel.
Tax dodging...
Mircea
Quote:
Originally Posted by Wayland Woman
Ya, that's what happened in a town near me, too. A GM plant that employed over 1,500 was closed due to the bankruptcy downsizing and it just got torn down this summer. No one was standing in line to buy the plant or the machines inside. Most of them went off to the scrap dealers. Critics in this thread just can't seem to understand how tight the banks were holding on to their money back then and still are to a certain extent. The whole world was on the verge of economic collapse.
How do you know that isn't what GM wanted?
The Trans-Am plant here stood vacant for nearly 30 years, before finally being torn down and there is still nothing there, so don't blame banks until you fully understand the exact circumstances.
I don't know, the automobile is too useful of a tool to be going away any time soon. Even if the American companies went away, no doubt someone may attempt to replace them.
If we had let the auto industry fail as Republicans wanted, would Ohio be better off today than it is now?
I am not exactly sure if this is what "republicans" wanted. Yet, it is what I wanted. I find it self-defeating to keep propping up self-destructive companies. That we would be without a auto-industry (or we wouldn't be able to get cars anymore) is just stupid.
The whole point in Capitalism is that you let bad companies fail. Then other companies will fill that void. This would of been a little of a cascade. .but who knows where we would be now? Probably GM and Chrysler divided up among Toyota, Honda, and other rivals? New Auto Companies filling the void?
So to answer your question, I don't know. Ohio and Michigan could of been screwed by the process. . .but the innovation that grew among the fiery wreckage could easily leave the states with a great future. Sometimes the best thing you can do is let the forest burn.
I am not exactly sure if this is what "republicans" wanted. Yet, it is what I wanted. I find it self-defeating to keep propping up self-destructive companies. That we would be without a auto-industry (or we wouldn't be able to get cars anymore) is just stupid.
The whole point in Capitalism is that you let bad companies fail. Then other companies will fill that void. This would of been a little of a cascade. .but who knows where we would be now? Probably GM and Chrysler divided up among Toyota, Honda, and other rivals? New Auto Companies filling the void?
So to answer your question, I don't know. Ohio and Michigan could of been screwed by the process. . .but the innovation that grew among the fiery wreckage could easily leave the states with a great future. Sometimes the best thing you can do is let the forest burn.
Truth is, large decisions like these have all sorts of consequences, many which might not be seen until quiet some time.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
