I’d really like to know what is going on in Washington. What runs through the minds of our so-called congressmen and congresswomen? Why is it that we’ll pony up $700 billion dollars with just the snap of a finger to help battle a crazy mortgage related mess but we’re too damn poor (or are we just too good?) to come to the aid of the “big three” (Ford, GM, Chrysler) with a measly $25 billion dollar loan?
Washington D.C. and Detroit have lost their minds
And on that note what the hell has been going through the minds of every executive at these three automakers over the past several decades? Why is it that they are on the brink of bankruptcy and constantly losing market share when most of their foreign competitors are raking in the American Consumers’ dollar?
Unfortunately the question about the executives at the “big three” is a fully loaded question. It’s also likely to get some passionate responses. On that note if you want to voice your opinion on the “big three” then leave your comments at the new personal finance discussion forums here at Debit versus Credit.
$700bn? Sure. $25bn? Nah.
Let’s travel back to Washington D.C. Today Paul Kanjorski, D-Pa. said he wasn’t so sure that they should be supporting a loan package to the U.S. Automakers. Check out what he had to say about this:
I am not yet convinced that we must act so rashly. The American public demands that we get this right.
He’s right about one thing. We do demand that they get this right. I’d like to know however if ANYONE out there actually believes they did get this right. I don’t want to be hypocritical and say that thing should have turned around by now when in fact I’ve been preaching that it will take time. I still believe that. It will take time. However if we go back before the $700bn bailout was even conceived, back to a time when the subprime mortgage fiasco had not even begun to take place then we can see where maybe Washington didn’t get it right.
Where were they when these totally bogus loans were being created, repackaged and sold? I demand answers on why they have done nothing right for as long as I’ve been old enough to have any idea what’s going on in the world. For that matter are they ever going to get it right? Well Washington?
There’s a lot more riding on this than they’re letting on
The fact of the matter is that Detroit shouldn’t be in this mess. If they were half the company that Toyota is then they would have nothing much to worry about. But they’re not. The fact is they need help and we are basically refusing help. Well Washington open your eyes, because there’s a lot more riding on this than some of you might realize. What happens if G.M. goes belly up? Somewhere around 145,000 people will lose their jobs directly, but millions more will be affected. There are around 7,400 G.M. dealerships that will likely close. There are suppliers, shipping companies, marketing firms, etc. It’s a much bigger problem than Washington seems to realize, or maybe they’re just not letting on what they know.
Honestly there’s no way to tell. All I know is that they’ve already put $700bn dollars on the line that no regular citizen will ever see any direct effects from… what’s another $25bn to do save some auto makers from bankruptcy (something that is tangible)?
What do you think?
8 responses to “What The Hell Is Going On In Washington?”
The UAW is trying to fly under the radar, but if Washington REALLY wants to save Detroit, the union has got to be led to the chopping block. I don’t see any other way.
Blakes last blog post..My Little Civic at 105,000
I think that you bring up an interesting point about how $25B is in some regards, as sad as it is to say, a drop in the bucket compared to the bailout.
I was listening to NPR last night and they had someone on stated the CEO’s of the big three showed up in private jets, which is kind of like showing up at the soup kitchen in a suit and top hat. Of course it is much more complicated than this, but in so far as they have been running their businesses, I think this comparison is fair.
I’d like to bail them out. But let’s consider it money SPENT, economic stimulus if you must. The fact is that these companies are fat, lazy and stupid. They cannot compete, and they’ve shown no inclination to change. So if we do give them 25 Billion, how long will it last? I do not see a magical turn around. I see a money pit. That said it might be one of the BETTER money pits around.
Seems to me that 25 Billion could create 2000 new startup companies each working to produce clean energy products. Each employing 40-80 people for a minimum of 3 years.
Great comments Blake and AmeriGlide.
joe blow I want to comment on what you had to say. I definitely agree with you that the U.S. automakers are not well run. I don’t necessarily think they “deserve” a bailout and my point is moreso that if we’re doing it for everyone else… why not the big three? Especially when the costs are so much lower.
On that note I do like what you have to say about starting up clean energy startups. Interesting idea indeed. Do you know much about this?
The “Big 3” are in their current situation due to decades long management and UAW short-sightedness. No bailout is going to change that.
It would make much better sense to run them through an accelerated bankruptcy and use the $25 billion to help Toyota or Honda, or Nissan buy their assets. At least these companies know what their doing.
They’re not American companies though, so this has precisely zero chance of flying.
Scott Wimers last blog post..Crazy times
what is the biggest collection of screw-up on this side of the planet. A goverment for the people ha! it’s more a goverment that F*&KS the people Hard!!!! and then informs them that their unborn children are already born in to debt.
AJ – that is some pent up hostility. You’re quite possibly right though that our posterity may have a major debt to pay. I am not personally happy about that, but I’m not in a position to do anything about it at this point in my life.
What do you think needs to be done?
Interesting and Great blog love it