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Sunday, September 28, 2008

Automakers Get $25 Billion Bailout

As the nation focuses its attention on the other, more expensive bailout being debated in Washington the Senate passes a $25 billion bailout for American automakers.

The US Senate Saturday approved 25 billion dollars in loan guarantees for the financially strapped US auto industry, intended to spark a wave of automotive innovation.
The loan guarantees were included in a continuing resolution that included funding for the US government and the wars in Iraq and Afghanistan.

President George W. Bush has indicated that he intends to sign the bill.

“We’re very pleased Congress has chosen to act at this critical time,” said Greg Martin, director of communications for General Motors Corp’s Washington office.

I’m certain that General Motors, which was (but presumably is no longer) teetering on the edge of bankruptcy, is very pleased at this news.  But for the average American this has to taste like a bitter topping on top of the already bitter dish that is the financial industry bailout which also seems destined to pass.

Have we forgotten that failure can be as important as success in a free market?  That perhaps GM failing would be a good thing in the long run?  That it might prompt some start-up, or one of the company’s existing competitors, to step up with the sort of innovation that GM has clearly been incapable of?

What incentive does any of America’s corporate giants have these days to engage in good business practices when every time they’re on the verge of failure we taxpayers are forced to bail them out?

Comments

Well I’m pretty much done buying GM or Ford cars. 

Why don’t they quit begging for money and build cars people want to buy.


What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.


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The Whistler on September 28, 2008 at 05:24 pm
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That’d be too easy.  Much easier to spend millions on lobbyists to bail your business out after making cars nobody wants.


When the people fear their government, there is tyranny; when the government fears the people, there is liberty.

-- Thomas Jefferson

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Rob on September 28, 2008 at 05:28 pm

And now we’ll spend billions more developing cars people don’t want. 

These jokers in Congress are too stupid to balance their own checkbooks or understand their own mortgages but they think they’re smarter than everyone else.


What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.


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The Whistler on September 28, 2008 at 05:30 pm

How much is going into the big pockets of union bosses?148bhs.jpg

Kevin on September 28, 2008 at 07:15 pm
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"Automotive Innovation” It’s like, were doing it for the children, but for cars. I can’t even express what a JOKE this is! Do they really think we are that stupid?

tothestars2 on September 28, 2008 at 08:30 pm
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I agree with Whistler.  My next car will definitely be foreign.  However, my next financial move will be to clamor incessantly that I don’t have enough money to pay my bills.  Then maybe I can get a bailout.  We used to call that welfare.  Before that, we called it socialism.

Jackass Jimmy on September 29, 2008 at 04:52 am
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I agree with Whistler.  My next car will definitely be foreign.

Almost makes me wish that ol’ Buzz was here! I saw an Audi a4 with an Obama bumper sticker on it over the weekend. I don’t remember if it was one of his “Buy American” stickers or not!


Better to have it and not need it than need it and not have it.
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Proof on September 29, 2008 at 05:01 am

It just never seems to end, does it? These jokers stuck this provision into a bill that they knew would pass and would not be as scrutinized because we were focused on the Wall Street bailout. Mediocrity is the word of the day in corporate America. Especially in the automotive industry. GM, Ford and Chrysler refused to budge and build the competitive cars we practically begged for. When they built them, quality control was not a factor. I was hoping that some bright-eyed Congressman would catch the auto bailout. Since when do we have to pay capitalist corporations to be innovative? The fact is, the innovations will make the vehicles more expensive. It is as though we are subsidising
the carmakers to insure profitability. No, Kevin, I do not think much is going into the pockets of big union bosses.

Rewarding failure is evil. Do you think that maybe this whole financial mess was part of a corporate strategy to screw the taxpayer? Do you really think jobs are going to come back to the U.S.? Don’t hold your breath.

ollie-B on September 29, 2008 at 07:49 am
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