Market Watch 11/10/08
11-12-2008, 09:23 AM
#16
The numbers I've seen from unbias sources are 10,000 jobs in the manufacturing sector. While that is a big number, it is not THAT big in the grand scheme of things. Consider for example, DHL has announced that it lay off just about that many people yesterday (9500). Two million is plausible if everyone stop buying/driving cars and every car company including the Japanese and German ones close shop.
Toyota for example has built plants in the US and ran successful operations here. GM has been given time and lots of money by the US to do the same. Why are we rewarding the losers? Giving them money will not fundamentally change the way GM runs their business. Bankruptcy is not necessarily the end of a company. Look at United Airlines, they filed for bankruptcy after 9/11 and they are back in the game with a more efficient business model.
Toyota for example has built plants in the US and ran successful operations here. GM has been given time and lots of money by the US to do the same. Why are we rewarding the losers? Giving them money will not fundamentally change the way GM runs their business. Bankruptcy is not necessarily the end of a company. Look at United Airlines, they filed for bankruptcy after 9/11 and they are back in the game with a more efficient business model.
Last edited by Jabberwocky; 11-12-2008 at 09:26 AM.
11-12-2008, 11:17 AM
#19
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i hope they pass this mortgage thing that locks the payments at 30% of your annual gross income... cause ive actually lost money this year. i can renegotiate the principal down and they would have to write me a check? lol
11-12-2008, 02:06 PM
#25
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srlsyIf people get the government to lock in mortgages, how come I have to pay more and more every year for rent? I'm not the idiot who took out an ARM loan that I knew I couldn't afford 5 years from now damn it! Rent control only prevents it from increasing drastically.
11-12-2008, 03:52 PM
#26
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GM is not going to go under....It won't happen. They need enough money to get them through to 2010 and their cost saving measures will start to take effect and that's when they predict the vehicle market will come back. The problem is indeed the Unions and finally they are starting to deal with them like they should have been. There is no way they can get rid of them at this point because they have been ingrained in the industry so long and have too much power.
The domino effect would be catastrophic to the US economy. You're talking about up to 2 million jobs in the auto companies and suppliers alone....And those suppliers don't just make parts for GM they also make parts for all the other automakers that have plants in the US. (Toyota, Ford, Chrysler, Honda) So a supplier going under negatively affects one of those automakers as well. Did you know that one of the largest customers of the US cattle industry is GM? All the leather seats they put into cars. How will that affect them? You see where this is going? I hated the bank bailout, but I don't think AIG going under would have had the same effect as GM going under. I also don't think GM shoulders the entirety of the blame for the situation they are in, like the financial institutions do. The reason GM is asking for money from the federal government in the form of a loan or "bailout" is because of the credit crisis and not being able to get a loan from a financial institution.
The domino effect would be catastrophic to the US economy. You're talking about up to 2 million jobs in the auto companies and suppliers alone....And those suppliers don't just make parts for GM they also make parts for all the other automakers that have plants in the US. (Toyota, Ford, Chrysler, Honda) So a supplier going under negatively affects one of those automakers as well. Did you know that one of the largest customers of the US cattle industry is GM? All the leather seats they put into cars. How will that affect them? You see where this is going? I hated the bank bailout, but I don't think AIG going under would have had the same effect as GM going under. I also don't think GM shoulders the entirety of the blame for the situation they are in, like the financial institutions do. The reason GM is asking for money from the federal government in the form of a loan or "bailout" is because of the credit crisis and not being able to get a loan from a financial institution.
11-12-2008, 07:48 PM
#27
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that would raise the heck out of my mortgage if it's based on household income... or is it based on the mortgage holder's income only?
and that's pretty jacked up, it basically means that two people that own dramatically differently priced houses but make the same $$$ pay the same mortgage. and that my friends IS socialism.
11-12-2008, 09:40 PM
#28
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do you have a link to this?
that would raise the heck out of my mortgage if it's based on household income... or is it based on the mortgage holder's income only?
and that's pretty jacked up, it basically means that two people that own dramatically differently priced houses but make the same $$$ pay the same mortgage. and that my friends IS socialism.
that would raise the heck out of my mortgage if it's based on household income... or is it based on the mortgage holder's income only?
and that's pretty jacked up, it basically means that two people that own dramatically differently priced houses but make the same $$$ pay the same mortgage. and that my friends IS socialism.
http://www.mlive.com/us-politics/ind...ral_bailo.html
"Over these past weeks, we have continued to examine the relative benefits of purchasing illiquid mortgage-related assets," said Paulson. "Our assessment at this time is that this is not the most effective way to use TARP funds."........
Paulson's announcement was a public acknowledgment by the administration that the hundreds of billions of dollars spent thus far to buy up complex mortgage-related assets were not solving the economic crisis that their misuse triggered, or helping to lubricate the dried-up credit markets.
Paulson's announcement was a public acknowledgment by the administration that the hundreds of billions of dollars spent thus far to buy up complex mortgage-related assets were not solving the economic crisis that their misuse triggered, or helping to lubricate the dried-up credit markets.
11-13-2008, 04:22 AM
#29
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I don't like it as much as the next guy, but if GM literally went belly up it would destroy the economy. There are so many industries that would be affected. And companies get loans and lines of credit all the time. Just normally from banks but the banks screwed themselves and everyone else with the sub prime mess....