Anyone out there still oppose the "loan?" I personally have come full circle, starting out "let them fail" but now understand that it will cost us more to let them fail than to give them a "loan," not only due to the unemployment issue (another 1% of the entire population) but also all the lost tax revenue that we're accustomed to but everyone is forgetting about. When you toss in the fact that other countries subsidize their auto manufacturers, I'm really not understanding how this bill is not passing. Sorry to send a blog in a blog (see link below), but the auther makes some good points - and the "let them fail" comments from the opposition are starting to sound old-fashioned and unrealistic to me. Thoughts?
Especially curious to know what y'all are hearing (and think) in different parts of the country. Here in Chicago, it's pretty harsh and extremely unbalanced. All anyone cares about (on the news, etc.) are the "private jets" story. That is so silly...corporate jets are not just for "luxury" and are also not just used executives - they're actually very useful tools and are often used by engineers flying out to plants to troubleshoot issues. Not defending the Big 3, just trying to keep things balanced...
http://blog.mlive.com/capitolchronicles/2008/12/a_death_sentence_for_detroit.html
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agree about the private jets...overhyped media nonsense. However, do not agree about the bailouts. The decline of the big 3 presages this recession. It is a direct result of poor management and the existance of the unions. Pumping the company with money does not solve either of these issues.
But poor management and the union contracts were also starting to get fixed before the recession.
Another interesting point I heard last night - the US has had very low gas prices the last 10-20 years compared with other countries, which is the main reason that we have loved big SUV's. The Big 3 were just supplying this demand. Demand for SUV's depends on gas prices (which the government can partly control with tariffs.) It's not just the Big 3 - you also have to look at the American car buying public, and also those who set gas taxes (they've been too low, which is weird to say but it's true.)
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