News, Study: Auto industry failure would hit Tenn. hard.

[leonard]

Originally Posted by JMT

Oh I'm not denying that there won't be any short-term effects. But I refuse to believe that our entire economy will collapse if the UAW doesn't get its way.

I may be overly pessimistic, but I am in the industry and I am hearing and seeing what is already happening and it isn't good. The UAW is not the only problem. The biggest is simply there are not enough people who can, or who want to, buy new cars. Being as big as they are and having as much of an impact as they do on our economy, you better believe it will create major problems.

I give it 60 days, if the Gov't does not step in.

Then watch out.

Mind you if the Gov't does step in, it just staves off the problem for a while.

I would love to be wrong, but every thing I am seeing says just the opposite.

[supernerdgirl]

Originally Posted by leonard

I may be overly pessimistic, but I am in the industry and I am hearing and seeing what is already happening and it isn't good. The UAW is not the only problem. The biggest is simply there are not enough people who can, or who want to, buy new cars. Being as big as they are and having as much of an impact as they do on our economy, you better believe it will create major problems.

I give it 60 days, if the Gov't does not step in.

Then watch out.

Mind you if the Gov't does step in, it just staves off the problem for a while.

I would love to be wrong, but every thing I am seeing says just the opposite.

I'm just wondering what direction the companies will go if the government helps out? If people aren't buying cars, do the companies plan on retooling for any other sorts of vehicles... i.e. buses or trains? Or at least putting some efforts in another direction?

I'm just curious. I'm not sure i understand how bailing them out will help, if they just use the money to continue building cars that people aren't going to buy, and we'll be back where we started.

[Beretta]

Mod Note: The focus of this thread should be impact to Tennessee. Thanks.

[LovnTN]

According to the latest news the bailout to the auto industry is going to happen, therefore the repercussions to Tennessee should be limited. Hopefully the banks start lending, the housing market turns around and the sun starts shining on this country again! Because I am sick and tired of all the doom and gloom.

[hiknapster]

Originally Posted by LovnTN

According to the latest news the bailout to the auto industry is going to happen, therefore the repercussions to Tennessee should be limited. Hopefully the banks start lending, the housing market turns around and the sun starts shining on this country again! Because I am sick and tired of all the doom and gloom.

I'm with you there.

Nothing horrible has happened in Knoxville, yet. The restaurants were packed, tonight as were the roads and stores. We had a tough time finding decorations, last weekend, most things were sold out.

I really hope it stays this way. I haven't even bought presents, yet. I am so afraid something bad will happen. I try to pay the mortgage two months in advance, just in case.

[WOWAddict]

Anyone at Denzo hearing any rumors? My Uncle-in-law works there but I really did not want to bring up the subject in case there is.

I know its stressful enough without having to talk to others about it.

On one of my first visits to Maryville. He took me around town and told me about how many jobs Denzo brought. Being the devil advocate I am, I kept thinking to myself what if they had hard times. What would happen to Maryville if Dezno or even Alcoa went under. At the time I just filed it in my mental roldex but now it really has come front and center.

[Beretta]

There are rumors regarding Denso and Alcoa has already had some layoffs. I don't think either one of these companies are going away but certainly they are affected by the economy just as everyone else. The City of Maryville has already stalled many major projects and told the schools that there is no expansion at this time. I believe Alcoa had something similar in the paper in the last few days.

I am also hearing healthcare will be affected. It doesn't take a rocket scientist to figure out if the state of TN is hurting and half of their expenditures are TennCare; so TennCare will likely have cuts. Two things happen to hospitals when TennCare cuts. One is that patients don't come to the hospitals, which hurts their bottom line and then second, patients that have to go to the hospital (very ill) are charity patients that the hospitals can't turn away yet they never get paid.

[WOWAddict]

What about Nissan? I saw a great Job, 6 months or so back, that paid more than what I am making down here. But then I weighed Auto Industry vs Govt and decided to stay, didnt want to take the chance.

[jsherman9901]

Originally Posted by hiknapster

Next up: The Great Depression 2009. It started with Nixon establishing for-profit healthcare and making friends with China.

People always seem to remember that Nixon took us off the gold standard, but no one ever mentions the salient points you brought up.

[mrradio]

The Philadelphia Federal Reserve released its coincident index survey (essentially a mesure of each state's economic health) and while most states were down, Tennessee's rating was unchanged. A few, like Wyoming and Louisiana, were up.

It's just a question of time, however, for us all both nationally and internationally. The pain is and will be widespread. Be glad you're in the USA; we'll be first out of this.