U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Economics
 [Register]
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.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 12-12-2008, 04:03 AM
 
90 posts, read 299,413 times
Reputation: 75

Advertisements

I understand the Federal Reserve, that does not report to Congress, will just print the money and give it to the car companies. Basically the car companies will borrow the money from the Federal Reserve instead of the Treasury. That way they do not have to worry about cutting expenses or executive compensation.

See the article below for more information.

Bloomberg.com: Worldwide
Reply With Quote Quick reply to this message

 
Old 12-12-2008, 04:32 AM
 
26,661 posts, read 40,585,083 times
Reputation: 14755
Yes!!!!

Let them file for bankruptcy and go from there!!!

The workers will be better of when they will know what will happen to them rather than sleeping well for 1 month and thanhaving to go through the same, while knowing that millions have been thrown down the gutter....
Reply With Quote Quick reply to this message
 
Old 12-12-2008, 04:51 AM
 
Location: Georgia, on the Florida line, right above Tallahassee
10,474 posts, read 14,151,127 times
Reputation: 6374
Cerberus has a ton of cash. They just don't want to spend it on a failing enterprise.
Reply With Quote Quick reply to this message
 
Old 12-12-2008, 05:08 AM
 
12,869 posts, read 13,422,907 times
Reputation: 4453
Cerberus Capital Management begins its finance "road show" today on the East Coast of the United States and goes to the West Coast on Friday to secure investors in its acquisition of Chrysler.

J.P. Morgan, Bear Stearns, Goldman Sachs, Citigroup and Morgan Stanley have committed to raising around US$62 million in debt to finance the Chrysler deal.

the above is from a financing article for cerberus. why do you think that the auto industry is being targeted solely for a taxpayer bailout? you need only to see who was involved in the financing of the cerberus deal. there are a lot of other industries, cities, and states in serious financial difficulty right now. schwarzenegger is talking about a financial armageddon for california.
Reply With Quote Quick reply to this message
 
Old 12-12-2008, 05:20 AM
 
90 posts, read 299,413 times
Reputation: 75
I expect eventually a foreign car company will buy one or more of the big three and will take many of their workers and factories but of course at a much lower pay-scale. How about Toyota taking over or maybe China?
Reply With Quote Quick reply to this message
 
Old 12-12-2008, 06:28 AM
 
22,770 posts, read 26,989,299 times
Reputation: 14581
I find it very interesting that the UAW dug their own grave with this one. All they had to do was lower their wages to market level - to what everyone else earns - and they get to stay in business.

The more I watch this unfold, the more I believe unions are a parasite that ultimately kills industries.
Reply With Quote Quick reply to this message
 
Old 12-12-2008, 06:33 AM
 
Location: Marietta, GA
7,858 posts, read 15,192,827 times
Reputation: 3566
Quote:
Originally Posted by geos View Post
Bingo! Union busting is the latest piece of red meat F#X Nazi News throws at the ignorant foaming at the mouth buffoons who would devour their own children if O'Reilly told them.
Um...yeah...that make a lot of sense. You dilute any reasonable opinion you might have with that type of nonsense.

What we have here is a game of chicken. The UAW wants to kick the can down the road to 2011, while the Senate Republicans wants to force the issue this year. As best as I can tell, it has to do with the union agreeing to accept wage and benefit parity. The union has run amuck, and this is an attempt to bring them to reality. Yes...I'm sure that there is some competitor influence here as well, but that doesn't change the fundamentals. If no agreement is reached, the union will get the hard hand of bankruptcy, and they don't want that. Any reasonable person has to agree that the union and the absurd work agreements are a huge part of this problem.

My prediction is that either Bush will be a fool and hand over the cash with no strings and screw things up as he has done recently, or we'll end up back at the table over the weekend (remember TARP I and II) and they'll split the difference between 2011 and 2009 to 2010. Allowing the unions status quo for 2+ years is not an option.
Reply With Quote Quick reply to this message
 
Old 12-12-2008, 06:38 AM
 
Location: Heartland Florida
9,324 posts, read 24,252,214 times
Reputation: 4927
I believe that a bailout loan will be approved before the end of this year. The TARP money was just a cover-up to calm foreign investors. The biggest players will be compensated while everyone else gets the shaft. I have been discussing the auto situation with friends for years, many of which have disposable income and buy used (classic ) cars instead of the new junk the automakers put out today. Chrysler, for example should remake the challenger, charger or cuda as a direct reproduction of the classic with some modern functional upgrades. Price it right and dominate the market. Instead they insulted the Charger name and built an overpriced "challenger". The only way to save the automakers is to let them go bankrupt and reform both the union system and Michigan taxes and regulations. Otherwise expect the less expensive south to be America's car central.
Reply With Quote Quick reply to this message
 
Old 12-12-2008, 07:04 AM
 
Location: Wisconsin
746 posts, read 1,977,600 times
Reputation: 431
Quote:
Originally Posted by rubber_factory View Post
I find it very interesting that the UAW dug their own grave with this one. All they had to do was lower their wages to market level - to what everyone else earns - and they get to stay in business.

The more I watch this unfold, the more I believe unions are a parasite that ultimately kills industries.
I agree that the unions have gotten too much power in this country and are ruining industries. They make it impossible for companies to remain competitive in a worldwide market, then the union workers cry when jobs get shipped overseas.
There was a time when the unions were needed to battle unsafe and unfair work conditions and such. But, now the power has tipped to far in their direction. It's pretty bad when the only way you can get a job in a union factory is if you have family members that already work there. Where is the fairness in that?
Just to be clear, I am NOT a republican and I do NOT listen to Faux news. These are things that have been evident for a long time in this country and we are finally seeing it spoken in the open.
You don't see the foreign auto companies having anywhere near the amount of financial trouble that the American companies are having. Their CEO's don't get over-inflated wages and neither do their workers. Also, Japanese companies have a culture of planning for greater profitability in the long-term over the short-term. I have seen this be effective for them in other industries where the American company might surge ahead of them in the short-term, but not the long-term. American companies need to change the culture of corporate and individual greed and plan for the future better.

Auto union workers should be getting fair market wages, not the over-inflated wages that they have been getting which are unsustainable in the long run.
Reply With Quote Quick reply to this message
 
Old 12-12-2008, 07:08 AM
 
Location: Beautiful Lakes & Mountains of East TN
3,454 posts, read 6,712,919 times
Reputation: 874
Unions think they're invincible and I hope and pray they get the slapdown they deserve in this and that our representatives stand their ground!!
Reply With Quote Quick reply to this message
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.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top