Who's happy with the job our elected officials are doing on this one. Our government hasn't saved GM or Chrysler from bankruptcy using your money. Now they are in the position of having a say in how they are run. What do think, as a stock holder?
Well puppa I feel like you we have been ripped off one more time ! Can I cash In my shares ?
I'll buy'em all. Do you take MC, Visa, Paper Clips, Monopoly Money...?
What other options were available to the administration?
It should never have been the government's option in the first place. Private business is private business. The government shouldn't be doing "business" in the private sector.
Obviously the best option would have been to let the free market sort it out. Rather than flushing 100 billion taxpayer dollars; allow GM to file Chapter 11, stay out of the way, and let the legal system sort it out. The excess capacity is shed and GM emerges stronger. That option has worked for over 200 years. Instead, Barack Hussein Obama has interfered with federal bankruptcy proceedings, co-opted the legal rights of bondholders, and kowtowed to the labor unions that helped elect him. He fired the CEO and replaced the board of directors, then went on TV and told us he didn't want to run GM.
Change we can believe in?
They should have let GM fall down the endless pit and have done with them. The total 50 billion Dollars should have been split between the workers of GM, this would have given each worker around $300,000 each. Ok the tax payer would not gain from this, but will you gain from this now the us government has bought into it, I dont think so.
I for one will never buy a GM car again, just to make a point.
My next car will be a Ford.
And I used to love Mopars. My ultimate dream car was once a '71 HemiCuda. I currently drive a PT Cruiser and wanted to trade it in for a Dodge Challenger but after this disaster, screw GM and Chrysler. If I want an American-made car I'll buy a Ford. Or maybe even a Toyota.
I think we all better move a little closer to our jobs and buy really good bicycles.....
I had a Pontiac Firebird In my early 20s that I still miss !
My first car was a '69 Olds 442 I bought for $400. My second car was a '74 Pontiac Grand Prix, also bought for $400. I couldn't find a decent Mopar for that kind of money back then so I settled for GM. I owned both cars in high school and they were pieces of junk but fast as heck and nothing sounds the way those big-block V-8 engines sounded when I punched it.
Ah, the memories...
I just can't wait to see the first Viagra ad on the side of an electric, Nascar, stock car.
LMAO! They might need to re-brand Viagra as "Jolt" to fit in with that type of advertising!
Actualy I think it has already happened. Maybe they thought it would get them out in front.
http://www.amazon.com/TEAM-CALIBER-MART … B001ODZCA0
My first car was a Dodge that was a piece of you know what ! But my friend had a license so he had to do the driving , our first big road trip was to see Jethro Tull at the coliseum In LA , aaaahhh the memories . We sure have lost our way In this country .
I seriously almost cried the day I heard about the buyouts/bailouts. This whole situation is very sad for America. Unfortunately, some businesses don't do as well as others and the natural weeding out of businesses is ultimately healthier for the economy. Sort of like the strongest and fittest will survive.
Government should never, EVER run businesses. One reason - it ultimately hurts the consumer. Think otherwise? Competition equals lower prices & better service.
I love this example from my economics professor:
Go to UPS (privately owned postal company) to mail a package. At noon, when it's break time, if there are people still in line, they'll assist you and you'll be on your way.
Go to USPS( US Gov't run postal service) to mail a package. At noon, when it's break time, you'll have to wait in line forever while the shifts are switched and less postal workers are working.
I've experienced this, it's so true. Privately owned businesses care about the consumer and they compete for your business. Without competition, our entire economic structure is severely threatened!
I'm sorry it had to come to this, but I also realize that the economy is so damaged that drastic measures had to be taken. Time will tell if we did the right thing.
Well to blame President Obama squarely when bailouts were initiated by President Bush seems unfairly partisan. Btw coming to the topic as a common tax payer what say do we have in these matters.
None the Constitution Is being thrown by the wayside daily .
I must have missed something. Who blamed Obama? My comment was aimed at our elected officials. I believe Bush was elected, too. I think you may have been looking for something that wasn't there.
In the past in another thread I have read your views about the so called justification for President Bush's Iraq invasion. And now in the above thread also it seemed that you were indicating that it could be President Obama's teams fault. Anyway, Can you please answer the below question which has been rephrased from your opening statement.
When you say "Now they"(whom are you pointing about being in "Position" and "hasn't saved")?
If I have wrongly understood your opening statement then I do apologize and beg for your forgiveness.
No apology is necessary. I don't know any other way of saying our government and elected officials. I have pointed my finger at all politicians involved with this debacle, former and current. That is the "They" I am referring to. Obama just happens to be the leader of the pack right now.
Apology, but who wants a GM??
I think GM will fail no matter how much money the government throws into it, and shortly after that, the U.S. will go belly up too.
We are so screwed. It just hasn't hit people yet.
It will though.
There are a lot of examples of companies in Europe who have pulled through bad times with government money and partial nationalisation.
The question is could the US absorb the fallout of complete failure in the car making sector? The Obama Government thinks not.
I personally have no answer but I think its not a time to be too ideological. Or overly pessimistic.
There is plenty of productive capacity in the world for us all to be materially secure. The only issues are getting the finance sector back on track and making sure that production is long term, ecologically viable.
Well now that I see you were trying to even include the previous elected team it seems to be a balanced perspective. I hope you do understand that I was misled by "now they" and didn't mean to assume without any reason. Yes, we have a huge problem and we ought to see by the end of President Obama's term if any progress will be made. I feel we are still in the early part of his tenure and should be realistic that there won't be any easy quick fix resolution(even if they are eventually resolved). Have a good day.
I only had GM stock becuase my grandfather patented a part to use on the breaks for GM. Although I don't know the entire story, I was left some shares many years ago. I sold them two years ago for my boss said this was going to happen.
I agree with all three of you. This has been a systemic shortcoming on both sides of the fence for a long time.
Thanks for the input
Ok, but why not? The government wheels and deals with businesses all the time. We have several agencies that exist just to regulate our industries. "Private" businesses have never been that private anyway.
I don't think the 1/3rd collapse of an industry along with the permanent loss of those jobs is worth 300k a person.
Last time I checked, there was still plenty of competition both from our own domestic auto industry as well as foreign industries. I wouldn't cry just yet.
I sure don't want my tax dollars going to bail out a failing company. I start then to think, whoah, I am in agreement with the Republicans! But then I wonder, hmmm, didn't GM ask for money from the government?
No company should exist whose failure can have such a drastic impact on US economy.
I dont see them coming back any time soon. ESPECIALLY since it appears that they are beholden to the government and will have to build cars that the government suggests rather than what the market demands. You can't create demand for something and if GM starts spitting out nothing but micromachine hotwheels (does anyone remember those?)that are the size of a lawnmower then nobody will buy their cars.
I just don't understand why BUSH or OBAMA gave them bailout money when we knew they were going to go bankrupt anyway. Isn't there a phrase about throwing good money after bad or something like that?
Too big to fail? Since when? If they aren't making cars people want or at a price people are willing to pay... THEN MAKE BETTER CARS AT BETTER PRICES. Why the hell do we have to bail out mediocrity and failure?
As a full time trader, I obviously track a lot of stocks, though I only trade derivatives. The GM call was a difficult one for the administration, because of the massive production downline and suppliers that GM utilizes.
Of course, GM's problem has always been the same, an overwhelming attitude of arrogance toward the public. They have been consistently behind the curve in developing new products that meet consumer demand. For example, their new gambit, a cross over vehicle is being heavily touted, unfortunately the first crossovers came out five years ago and the market has already established distinct preferences for the existing vehicles. GM is in the position of having to steal market share as opposed to establish market share.
This is fairly typical of the GM mentality, especially when you consider the way they have staked much of their resources on their electric car, the Volt, which will cost 40K, at least. During a recession, I don't see many individuals rushing out to buy a first year electric car at any price, let alone 40K.
Anyway, the suppliers to GM were helped greatly by this bailout and hopefully some jobs were saved. As for bailouts, I abhor them.
It's not just what they are being told to make, it's what they're being told they shouldn't make; trucks and SUV's. These platforms have always been GM's bread and butter. I am all for alternative fuel vehicles, but GM is not going to make money on electric cars in the near future. We Americans are fickle about the cars we like, and drive, and it is going to take some getting used to a car that hums instead of rumbles.
The other miracle that needs to happen is instantaneous infrastructure. We have no way of dealing with a great in-flux of electric and alternative fuel vehicles. Nobody seems to be addressing that issue. If your Prius or Insight breaks down in Cornfield County, Ks (for those of you from Kansas, substitute Nebraska)who is going to fix it for you? How, other than a dealer, is going to have the tools or capabilities to fix something they have never seen?
Good luck, GM. You're going to need it.
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