Big 3 Automakers

arbilad · Head Chef

Big 3 Automakers

Organist · Senior Member

Na na na na, na na na na, hey hey hey, goodbye!

I was against the huge $700 billion money grab. Just look at how they've used the money, not really how they told us it would happen. I don't trust a single one of them. Absolutely no way would I let them give another $25 billion to their buddies.

LoudmouthMormon · Profuse Pontificator

Letting inneficient businesses fail in recessions is eventually a good thing, because once the dust settles, everyone left standing is quicker/better/cheaper/more efficient.

It can cause a heck of a lot of pain in the short term though. I'm usually not given to hyperbole, but "devastating" is an appropriate term to use when considering the impact on a ton of towns in this country if the auto industry fails (as it apparently should). The industry is large enough, that letting it fail might prolong and deepen the recession as well.

The upside to some sort of govt bailout of the auto industry, is it won't cause all this pain. The downside, is that we'll have to do it again eventually, because companies that are propped up usually don't stop failing, they just need additional propping up at a later date.

LM

arbilad · Head Chef

That's pretty much my feeling. It will be really, really bad in the short term. But long term its bound to happen, and it's better to get it over with sooner rather than later.

Fregramis · Senior Member

I agree. Let them go under and come what may.

Xanth · Senior Member

I'm glad I'm not the only one with this line of thought.
Sometimes I wonder if the govt should force all the banks/lenders to forgive their loans, and start over. Instead of just shuffling money around.

arbilad · Head Chef

Our economy isn't going to get better until people get past the idea of debt being necessary. I still remember, earlier this year, someone in Elder's quorum complained about the counsel against going into debt, saying "What they don't tell you is that there's good debt and bad debt." I think that the current crisis is showing that there is only bad debt. Imagine if the big 3 automakers had been operating mostly without debt; when the crisis hit, they could have taken out debt as necessary to get through it, then paid it off when things were good again. Instead, when things got bad and credit got scarce, they found that they couldn't even service their existing debt.

Cocobeem · Keeper of the Holy Grail

Cut 'em loose. Cars are such a crappy investment.

arbilad · Head Chef

Well, they're necessary too. As much as you love your horses, you still don't ride to work on a horse.

Smaug · Senior Member

Look, everyone working in the auto industry is probably getting filled with scare tactics by their employers, and union bosses, who both have ulterior motives. If they follow Mitt Romney's solution and go under and file for bankruptcy, they can reorganize and pay their employees less, and stay competitive in world markets. If they don't do this, and get bailed out, we'll be back here again sooner than you think.

arbilad · Head Chef

It's looking like they'll get bailed out, so the problem is delayed for a bit. But meanwhile we'll get to deal with problems of inflation, because they're just printing money now.