OK, I understand if the auto mfgs are not bailed out alot of people (don't know how many) will lose there jobs. Other than that, why will us NOT bailing out the auto mfgs. hurt the economy so bad? I'm not getting it.... We have cars, we don't need any new ones right now, can't afford them anyway or the gas, so what is the big crisis about NOT bailing them out.
I certainly don't claim to be an expert...:mrgreen: But they've also mentioned how not making cars will effect the manufacturers of metal, etc that go into making cars - so it will have a trickle down effect for many other companies and those employees. Probably shipping businesses also...and more!
There are a whole lot of jobs tied to the auto manufacturing that you would never think of. Just saw an article in my hometown newspaper saying they were closing a factory thats been in business for more than 65 years as a direct result of the slow down in auto manufacturing. This is in Wytheville, VA, not some place in Detroit.
There would be a huge ripple effect, as all the different businesses that support the auto industry would be affected, and as all those people lose their jobs and are unable to buy "stuff" then other businesses start going down the tubes. There's also a national defense aspect. If the American auto makers go out of business, then we have to rely on the Japanese and the Germans for military vehicles.
Well, we can't just keep bailing bussinesses out that are in the situation due to poor crappy management. I'm mean for pete's sake, who is gonna bail me out? nobody but me!
Been doing that for a while now, in some aspects. Not to mention that they are usually better vehicles than what the "big 3" produce and provide to the military. Craig
yeah, b/c AIG frickin went on a retreat and gave out big bonuses..... I just soon let them fail, file bankrupcy and then let the unions renegotiate the contracts!
You know, in theory bankruptcy should provide exactly the relief they need. It would let them out of all their contracts - unions, suppliers, dealers - so they could reorganize into more efficient and more profitable businesses. But the problem is, how many people would buy a car from a bankrupt manufacturer? Wouldn't you worry about warranty service? I know I would! I don't mind buying a ticket from a bankrupt airline, because I don't care whether or not they are still in business next month or next year. But if I buy a new car, I want it to have a good warranty, and that depends on the company staying in business. Unfortunately, a high percentage of Chapter 11 (reorganization) cases are converted, voluntarily or involuntarily, to Chapter 7 (liquidation) cases.
So do we penalize all business segments becaue of the idiots at AIG? I was against bailouts from the beginning. Only time will tell whether these bailouts were or will be the answer. I spent 34+ years with GM. Obviously I want GM to survive. However I am not confident bailouts are the answer.
where does it stop? the construction industy is hurting big time! think of how many jobs are connected to construction. my job is one of them......is the gov gonna bail us out too?
