Top Republicans want GM to file Chapter 11
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Chrysler got a huge military contract and sold Chrysler Defense, and we didn't have the credit crunch that we have today. And here they are asking for another bailout that makes the first one look like chump change.
So do you think that GM should not be asking for more, since apparently it's only been "over night"? Even GM knows the bailout they got isn't working, and it's been a little longer than over night. Handing them even more money is irresponsible. Unless you're a politician pandering for union votes.
Forget all that. Say the government gives them billions more, that they don't have, and they continue to fail like they are after the first bailout. What ever happened to all the rage over our national debt that we were seeing before last November? lol
So do you think that GM should not be asking for more, since apparently it's only been "over night"? Even GM knows the bailout they got isn't working, and it's been a little longer than over night. Handing them even more money is irresponsible. Unless you're a politician pandering for union votes.
Forget all that. Say the government gives them billions more, that they don't have, and they continue to fail like they are after the first bailout. What ever happened to all the rage over our national debt that we were seeing before last November? lol
Anyone who has payed attention to this situation from the beginning knew this wasn't going to be solved by the original amount. A representitive from Moodys testified that it was going to take close to 100b industry wide, but that it was STILL a risk worth taking when weighed against the alternative. Whether through loans or some bastardized version of bankruptcy, the government is ON THE HOOK for billions. EITHER WAY.
You can't expect capitalism and the free market to work in a global economy that doesn't see things the same way. You realize that the Prius doesn't exist if not for Japan's government subsidizing it, right? Due to government rules and regulations, Dodge is building a hybrid truck right now that they will loose at least 7k on per vehicle. That doesn't happen in a true free market. Gm and Chrysler have both made bad decisions to get where they are right now, but they wouldn't be in this postitionv without this global economic meltdown. The risk associated with keeping GM afloat to come out intact on the other side is worth it.
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Would it help GM to go bankrupt and shred its debts, yes, plain and simple.
But considering GM's biggest debt is the 500-600,000 retirees pensions and medical benefits. Who would absorb them?
GM's future healthcare obligations is projected to be $47,000,000,000. $47 Billion
http://healthcare-economist.com/2009...lthcare-costs/
GM's annual pension costs $7 Billion
http://www.nytimes.com/2008/07/10/op...owenstein.html
Who will absorb that??
I guess the few of you who favor Bankruptcy, also favor the Goverment (Taxpayers) picking up that tab?
Or is the real shortsighted reason you favor bankruptcy a anti-union bias?
Or a anti-American auto industry bias?
But considering GM's biggest debt is the 500-600,000 retirees pensions and medical benefits. Who would absorb them?
GM's future healthcare obligations is projected to be $47,000,000,000. $47 Billion
http://healthcare-economist.com/2009...lthcare-costs/
GM's annual pension costs $7 Billion
http://www.nytimes.com/2008/07/10/op...owenstein.html
Who will absorb that??
I guess the few of you who favor Bankruptcy, also favor the Goverment (Taxpayers) picking up that tab?
Or is the real shortsighted reason you favor bankruptcy a anti-union bias?
Or a anti-American auto industry bias?
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Capitalism does work, but as others have said you can blame our government for messing it up as it is too large. However I see another problem, projecting sales, and company growth is artificially increased by wall street as investors pour money into that company, and then when the REAL numbers come out, everybody yanks out and bam we have situations like this come up. Correct me if my idea is incorrect please.
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There's a huge difference between a tiny 2 billion loan to a company that has been profitable for 59 years straight versus a 30 billion plus loan to a company that hasn't been profitable in years, that hasn't gained marketshare, that is openly shunned by the market and doesn't have a chance of repaying the loan.
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How did we get into this problem, exactly? The subprime mortgage mess. How did that occur? No regulation.
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^^^ Blame the government for that mess as well
All signs that our government is TOO BIG and the people of the U.S. will not excercize (sp?) their right to check the government.
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You have it backwards. The people that got us into this mess went to college. Not the people that went to college got us into this mess. There's a very big difference between those two sentences.
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You completely missed the point. We can't play be involved in a global game that plays by one set of rules while we play by another. That's not a "free market". Everyone praises Toyota for their forward thinking with the Prius. That car doesn't see the light of day with out huge subsidies from Japan. Brazil converted their infrastructure to an alternative fuel....how? The government subsidized it. Our government keeps passing new tougher regulations on fuel economy and tells the manufacturers they "better start building cars people want". Unless gas is $4/gallon, people don't want hybrids or small compacts.
How did we get into this problem, exactly? The subprime mortgage mess. How did that occur? No regulation.
How did we get into this problem, exactly? The subprime mortgage mess. How did that occur? No regulation.
Just wanted to point that out again since some don't want to read that.
And anti union.