Car Manufacturers Demand Bail out

[Skandi]

Hard-pressed car manufacturers are demanding access to the government funds put aside to bail out the banking sector in a bid to ride out the on-going economic crisis.

http://uk.news.yahoo.com/22/20081119...d-fa6b408.html

Do you think this should be allowed? surely in a capitalist economy a company must make money in the good times and put enough aside to ride out the bad times, it seems that people think they can spend, spend, spend and never have to be responsible for their gluttony.

[Loki]

Let them go bust. Rather bail out the consumer. Let the banks go bust too, who for far too long have been charging immoral fees.

[Vulpix]

I am not sure. While it is perfectly reasonable to expect chronically unprofitable businesses to go bust ("survival of the fittest" in business), I wonder if the economic system, in dire straits as it is, can withstand the collapse of the Big Three, Ford, Chrysler and GM.

[Loki]

I am not sure. While it is perfectly reasonable to expect chronically unprofitable businesses to go bust ("survival of the fittest" in business), I wonder if the economic system, in dire straits as it is, can withstand the collapse of the Big Three, Ford, Chrysler and GM.

Maybe so, but just think of all the thousands of black job losses in Detroit.

[Vulpix]

LOL, do blacks work ?

Maybe so, but just think of all the thousands of black job losses in Detroit.

[Loki]

LOL, do blacks work ?

No, hence these companies needing bailouts.

[Nastrander]

I'm personally opposed to the bank bailouts, and bailing out individual mortgage defaulters, but I have different thoughts on the auto manufacturers. What else does america produce besides cars? We've lost so much of our manufacturing, building cars is our last major industry.

In a strictly free for all capitalist system, I'd say no to any bailout, but the car industry has been hamstrung for 30 years with excessive government rules and regulations. It seems if government created the current mess, they should help clean it up.

Of course government interference with the mortgage industry created the subprime mess also, so if I was consistent, I'd have to say the government should fix that too, but i won't

[SwordoftheVistula]

There's a whole 'nother auto industry in the US which isn't in trouble: BMW, Hyundai, Honda, Toyota, Nissan, and others have auto plants in the US, mainly in Alabama and other southern states. These factories are much more technologically advanced, they can switch product lines in a matter of minutes vs hours or days in the 'big three' plants.

There will be autoworker jobs in the US as long as people want to buy cars.

If one of these companies hits bankruptcy, then they can either reorganize, or others can buy up the useful pieces of the company while discarding the old, out of date plants and the union&dealer contracts which hold them back.


PS click here to contact your CongressCritters about the bailout:
http://www.capwiz.com/freedomworks/i...ertid=12215391

[Nastrander]

There's a whole 'nother auto industry in the US which isn't in trouble: BMW, Hyundai, Honda, Toyota, Nissan, and others have auto plants in the US, mainly in Alabama and other southern states. These factories are much more technologically advanced, they can switch product lines in a matter of minutes vs hours or days in the 'big three' plants.

There will be autoworker jobs in the US as long as people want to buy cars.

If one of these companies hits bankruptcy, then they can either reorganize, or others can buy up the useful pieces of the company while discarding the old, out of date plants and the union&dealer contracts which hold them back.

I never considered that. You're right of course.