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Bailing out the auto industry.

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ordeneus	Bailing out the auto industry.	Lead	[-]
Posts: 1011 (11/19/08 11:12:29) Fuck religion! Reply Quote More My Recent Posts Message Me Connection Blocking Invite Ignore User's Posts	Tags : None Wow, this econmy is fubar'ed! The US Gvmt is now mulling over wether or not to come up with $25B for the big three car makers. The car makers are saying that because of the credit crunch they can't borrow money any more, so, they want a loan... So, what do you think? Pros: There about 2.5 million jobs in North America, including an assload here in Canada, directly tied to the auto industry. Cons: That's a lot of money! The US car makers aren't going to survive anyway, nobody wants their product any more. Personally I think they should be allowed to fail, for as painful as that may be, because they ARE going to fail. The foreign brands (Toyota, Honda etc) are light years ahead in fuel efficiency, and anyone buying a US brand has to be fearful that they're going to go bust. The only thing that could really save GM is the Volt, but at $40K it's too expensive. Without that though, $25B could been sunk in to save them, and they fail anyway. Use the $25B instead on infrastructure projects that could hire some of those laid off workers. "Man will never be free until the last king is strangled with the entrails of the last priest."- Denis Diderot
SkittleSPOOK		#1	[-]
Posts: 5402 (11/21/08 18:42:07) 'insert witty title here' Reply Quote More My Recent Posts Message Me Connection Blocking Invite Ignore User's Posts	if you cant borrow money why should you be allowed a loan?! iasnt borrowing like a loan any how? geebus
ordeneus		#2	[-]
Posts: 1030 (12/12/08 14:42:56) Fuck religion! Reply Quote More My Recent Posts Message Me Connection Blocking Invite Ignore User's Posts	Yikes. The US Senate voted against a bridge loan for the Big 3, primarily because the Senators who have foreign car plants in their districts stymied it. Bush may still lend them the money from the $700Bn for the banks. However, GM has announced that pretty well production will halt in January and part of Feb... 21 factories across North America (including Ontario) will shut down for six weeks, with the staff getting minimal pay. I'm still dubious that bailing out the auto industry will even work, so what now? Immediate increase in unemployment benefits. Banks to agree on a 2 year holiday on mortgage interest payments for all workers laid off (Britain just did this). Immediate expenditure on infrastructure projects with preferred employment going to the laid off workers. Of course, none of this will happen with Harper in charge... Oh, and if I hear one more time any shit about UAW workers getting $70 an hour I may puke! Honda is also closing most plants in January, so much for it being the workers fault. The reality that everyone has to face is that nobody wants a new car! "Man will never be free until the last king is strangled with the entrails of the last priest."- Denis Diderot
Dream King668		#3	[-]
Posts: 3287 (12/13/08 18:22:38) Reply Quote More My Recent Posts Message Me Connection Blocking Invite Ignore User's Posts	Funny, I was under the impression that they wanted some concessions from the unions who refused. I don't know anything about the mortgage holiday for those who lost their jobs but as someone who is in the private mortgage industry why should I suffer because someone can't make their payments? In a buyer's market, better to foreclose, take possession and sell the property to get my money back. "One pound of flesh, no more no less. No cartilage, no bone, but only flesh. This task done, and he would go free."
ordeneus		#4	[-]
Posts: 1031 (12/14/08 00:11:39) Fuck religion! Reply Quote More My Recent Posts Message Me Connection Blocking Invite Ignore User's Posts	Because with out such protections the sheer number of foreclosures drives down the overall values too much. On an individual basis, sure, if you can't pay, too bad, but, when there are entire classes of people this is happening to, it affects everyone... Far better to make the mortgage companies (who in the US only exist now because of public money) serve the public good. I would suggest that it's better to come to an arrangement and keep the owners in, paying something, than reposes everything and have nothing coming in. Your assumption is that properties can always be sold, but, not if entire neighbourhoods have been foreclosed. "Man will never be free until the last king is strangled with the entrails of the last priest."- Denis Diderot

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