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Ford's business wasn't strong enough to support the entire chain. Had GM and Chrysler gone down, Ford would have gone down too. Not only did Ford support the bailout, but they lobbied for it, despite not taking any bailout money themselves.
Mulally, Dec. 5, 2008: In particular, the collapse of one or both of our domestic competitors would threaten Ford because we have 80 percent overlap in supplier networks and nearly 25 percent of Ford’s top dealers also own GM and Chrysler franchises.
Companies don't fold when one of their major customers fold. They downsize.
Any links to those same people who foresaw the economic collapse?
I don't listen to the amateur and hack economists who never saw the collapse coming, I listen to the ones who correctly knew the collapse was coming. They are the same ones who correctly tell us companies downsize and sell off parts of their business to stay afloat.
Are you going to listen to the Cubs if you want to learn how to win the World Series?
Ford's business wasn't strong enough to support the entire chain. Had GM and Chrysler gone down, Ford would have gone down too. Not only did Ford support the bailout, but they lobbied for it, despite not taking any bailout money themselves.
Mulally, Dec. 5, 2008: In particular, the collapse of one or both of our domestic competitors would threaten Ford because we have 80 percent overlap in supplier networks and nearly 25 percent of Ford’s top dealers also own GM and Chrysler franchises.
Ford received 6 billion in government loans in 2009. They received a 23 billion dollar loan in 2006. They backed the horrible cash for clunkers that hurt the lower and middle classes and which helped ford.
One could make a good argument that Ford took the money to "keep up with the joneses" but the fact remains, Ford loves big governments help.
I am always amazed at the lack of detail in such large numbers. However, the percentages are still significant in that "other" category of foreign investors. Of that 33.5% China and Japan account for about 14%. Who Owns Our National Debt?
Or... new companies sans the criminal management and boards and with cost structures not hidden by accounting fraud would have emerged.
Taking taxpayer money and transferring it to the same groups who destroyed their compampies to begin with is assinine.
What companies would that have been?
And where would they have come up with the HUGE sums of capital required to start such a venture when the credit markets were locked up?
And where would they have gotten their parts if virtually the entire supply chain had gome bankrupt and shut down?
And how long would all this have taken?
And how many more millions of Americans would have lost their jobs in the meantime?
And how much larger would the US deficit have become with all those extra millions of American drawing unemployment (and not paying income tax on their lost income)?
It's all well and good to say "the marketplace would have sorted it out" but the fact is the whole "the marketplace is always the best way to go" BS is all well and good IN THEORY, but REAL LIFE has CONSEQUENCES. Leaving everything always up to the marketplace the way Libertarians want to do makes no more sense than trying to control the economy fully the way Communists want to do - NEITHER WORKS VERY WELL - that's why NEITHER exists ANYWHERE ON THE PLANET.
What companies would that have been?
And where would they have come up with the HUGE sums of capital required to start such a venture when the credit markets were locked up?
And where would they have gotten their parts if virtually the entire supply chain had gome bankrupt and shut down?
And how long would all this have taken?
And how many more millions of Americans would have lost their jobs in the meantime?
And how much larger would the US deficit have become with all those extra millions of American drawing unemployment (and not paying income tax on their lost income)?
It's all well and good to say "the marketplace would have sorted it out" but the fact is the whole "the marketplace is always the best way to go" BS is all well and good IN THEORY, but REAL LIFE has CONSEQUENCES. Leaving everything always up to the marketplace the way Libertarians want to do makes no more sense than trying to control the economy fully the way Communists want to do - NEITHER WORKS VERY WELL - that's why NEITHER exists ANYWHERE ON THE PLANET.
Ken
Absurd to say the parts supply chain would have shut down. You obviously know little about economics.
The reason there isn't a free market is people like you who think you can run others lives for them so you continue to support big government even though they have been the cause of our failures.
It wasn't the free market that caused the great depression, or the dot com bubble, or the housing bubble.
The Bush and Obama Administrations both provided bailouts. I would have liked more strings attached to the bank bailout but the general idea is worthy.
I agree with you here, but I would have strongly preferred to avoid the financial crisis of 2007-2008 in the first place.
Absurd to say the parts supply chain would have shut down. You obviously know little about economics.
The reason there isn't a free market is people like you who think you can run others lives for them so you continue to support big government even though they have been the cause of our failures.
It wasn't the free market that caused the great depression, or the dot com bubble, or the housing bubble.
It's not just ME who says the parts supply chain would have shut down, as mentioned,it's ALAN MULALLY (head of FORD) who's come out and said that.
Are you really claiming you know more about the auto business than the head of Ford does?
Really?
REALLY?
If so, why the h*ll aren't YOU running a mega-corporation like Ford instead of sitting here wasting time all day like some "living in your mom's basement loser"?
LOL
Ford didn't need bailout money but Mulally went to bat for the bailout for his competitors and testified before Congress that the bailout was necessary not just to save GM & Chrysler but to save Ford and the supply chain as well. Do you really think that the head of competing company would go to bat for a competing company otherwise?
Really?
REALLY?
What possible reason would he have for doing that if it wasn't true?
So, again, are you REALLY claiming you know more about the auto industry than the head of Ford does?
And again, the totally free market doesn't work for a big economy, never has, never will - that's why it doesn't exist anywhere on the planet - ANYWHERE (and it NEVER will).
Ken
Last edited by LordBalfor; 09-22-2013 at 07:54 AM..
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