US Auto bail-out fails in Senate

Holy shit, I thought this was going to get passed. Hang onto your hats, Wall Street is going to be rough!
http://www.google.com/hostednews/afp/article/ALeqM5jNCis5hGBua1Wv_8B47pjONRs9lQ

 

That's awesome.

Now our domestic auto makers will have to bail themselves out,
by making cars that people want.

My biggest problem with domestic cars is that it always seems like
some old fart in charge decided that anything more than a big box
with no lines would be to much for your average church going American.

I know that is technically not why they are in this mess, but damn it
sure would help.

 

now what's gonna happen...

 

Dollar tanked for one. A lot of union workers are going to lose their jobs. A lot of executives will have less cash to have money fights with. But let's face it, those union makers make a lot of money for having skills that require very little investment in. I read somewhere they average $78/hour.

 

The fundamental problem with unions is that they are ultimately self-defeating in the end. Once they achieve their original goals they have to continue to justify their existence by trying to get more and do less until it eventually causes them to strangle the golden goose instead of letting it lay eggs.

 

exactly what the market needed....

in any case maybe they'll start building cars with some critiria now (less heavy, less thirsty, less polluting ecc)

 

Or maybe they'll just spend less money on production and release line after line of shit cars.

 

My grandfather wont be happy about this! (He own a Chrysler dealership)
:banghead:

 

That figure probably includes the cost to company of pension and benefits. Actual hourly wage is closer to 28-30. But the huge legacy costs to the company is what is killing them. GM and Ford probably pay as many retirees to sit at home as they do people to actually produce cars at this point. It only works when you have no competition and a complete monopoly on the market.

I love when they try to blame politicians for letting "foreign" companies come in and build plants and sell cars for all the US company problems. When they should really be looking at their management and the complete lack of research and development.

 

It just doesn't make sense to me, that the banks get a damn bail out but the auto industry doesn't. Guess we know who really has the clout in Washington, eh?

 

Chrysler is paralleling MG-Rover, in terms of its down fall.

At this point, simply people buying cars won't stop the downward spiral that the big 3 are in. They brought it on themselves, so they might as well get out of it themselves. Maybe a bankruptcy or two will cause them to wake up and realize just what kind of shit they are in

 

Unions are not the problem. The problems with the car companies are management, direction, and the general stupidity of a large portion of the american population that falsely believes our vehicles are inferior in some way. If people would just realize that buying all this shit from other countries is killing jobs here and stop supporting all these practices that do this we wouldn't have this problem. Walmart is a great example of the problem. Walmart is a crap dealer that hires slave labor to move boxes of cheap crap around to sell to idiots.

People that claim Unions are the problem (and that they should be rid of as the solution) don't know what they are talking about. Unions are supposed to protect workers so they can make a honest living and retirement. The alternative is working at shit holes like McDonalds till you fucking die. We can't all be executives producing nothing and getting paid a ton.

 

Well, it looks like you might get your wish. Bush has stated that he wants to ensure that the treasury offers approximately $13billion in loans. However, guess where from? Yep, they'll just take a huge scoop out of the money previously set aside for the banks!

Wonder how the banks will take it?

Apparently Chrysler needs $7billion by the end of December or it's either they file for bankruptcy or they are gone!

 

Uhh, isn't that why we're in this mess in the first place? Because Americans use credit all the time for large purchases they can't afford, like shiny new cars?

The only people I know that have bought new cars here in the past few years are all successful middle-aged business owners.

 

The problem is cost control, inferior technology and bad luck. But considering the first two, it was only a matter of time.

We should assist Ford and maybe GM, but not Chrysler.

 

I've found that people who are successful with money don't buy brand new cars since it is such a waste of money but instead get one that is one or two years old.

 

Although I do think it's unfair that the government is giving free money to the banks where only the elite will keep their money and not to companies that employ a good million people - I am against the government taking out more loans to bail out people.

Look at it this way though... When the airline companies cried to the government for money, they got it, and the airlines still screwed over their unions and still went bankrupt. The auto companies are just as likely to do it, too.

Yes, the banks do have more clout in Washington, but I also say that the financial market is more important because the way money works now, that you need a fat and happy ( that doesn't mean healthy ) financial market.

I just want the whole 'robbing Peter to pay Paul' tactic the Bush administration has been doing to simply stop. Stop putting bandages on it and let the wound bleed itself out and heal itself, even if htat means many people loose their jobs. I know that I can also be affected to, but I have 2 more years of school left and by the time I'm out, public works projects will be on high gear and a demand for fresh civil engineers will be high.... I hope .

 

$30 / hour wage and $45 / hour to pension? Whose pension is more than their wage?

I believe there are statistics that prove Toyota's and Honda's last way, way longer than their US competitors.

 

Fucking money.