Obama treating autos worse than Wall St

[JJChicken]

Originally posted by: Fern
Bah, I still say this is all political theater.

So he cans the top guy as a sacrifice. IMO, changing one executive isn't going to help with the deep systemic problems of our domestic auto makers.

They're gonna get bailed out again.

This is just a big show to make the American people tolerate what are otherwise unpopular bailouts.

The auto makers plans have been denounced by the beaurocrats as insufficient to ensure their viability.

Next step is 30-60 days of bailout money, and that followed by the proclamation that the gov beaurocrats have been successful is devising a winning plan for them. Yeah for the goverment! Maybe some more scolding from 'Mommy government', but the money will flow.

Automakers and unions are a big Dem constuency, I do not beleive they will allow them to fail.

Obama has got to make it look like certain doom, then step in and say he fixed it and taking all kinds of credit. It's just political theatre. They should be doing the really hard financial work and other planing like (quiet and) serious adults, not running around in front of the cameras saying dramatic remarks. Too much drama, too little honest-to-god seriousness for my tastes.

Fern

Hear Hear

 

[JJChicken]

Originally posted by: Craig234

Originally posted by: Fern

Originally posted by: LTC8K6
He has said pretty much flat out that Chrysler has 30 days to do a deal with FIAT or there will be no more money. Of course, his word historically has not meant much, imo.
-snip-

Upon hearing that my first thought was "Damn, that sure put Chrysler in a poor bargining position".

"Either take our deal, as is, or your President will shut you down".

I'm still amazed he did that publicly, and amazed no one's criticizing him for it.

Amatuer mistake, and a whopper at that.

That's the kind of stuff you say behind closed doors. Fiat didn't need to be aware of that, now they know they've got all the leverage. And on top of it, they are a foreign company.

People used to howl about our domestic companies being bought up by foreigners, here's Obama forcing it. Again, no complaints here either.

Fern

A little knowledge is dangerous. You might actually fool some people with that.

Obama had obligations to the American people regarding Chrysler's request for more funds and responding to the plan Chriysler submitted as a requirement of the previous bailout. He isn't telling Fiat anything they don't already know, that he didn't need to say at this time. Chrysler's said it can't stay in business without the loan...

Once in a while, your logic sinks to the level of some of the worse Obama bashers.

Obama's being straight

You aren't used to that, are you?

This is right as well.

 

[JJChicken]

Originally posted by: chess9

Originally posted by: coolVariable

Originally posted by: zephyrprime

Originally posted by: retrospooty
That, and like I said, if they file bk - its not like all factories close and everyone goes home. There are billions upon billions of dollars in factories, IP, and experience - it will be bought out, cut the fat (UAW contracts and hopefully poorly designed cars) and restart under new management. this is unlike the banks, if they fail, we would be in a massive depression.

I'm not so sure the banks failing would be so disasterous as you say. If the banks failed, they too would go into bankruptcy, be recapitalized, and restarted under new management. The taxpayer would be on the hook for a ton of money, but hey, the tax payer is currently on the hook for a ton of money also. If anything, by allowing the banks the fail, the tax payers may be able to avoid paying a lot of financial speculators that bet against mortgage securities but at not banks and thus save some money. Also, the taxpayer would get a bigger equity of the banks to eventually sell.

Japan kept their banks from failing and as a result, their whole country has been in the tank economically for nearly 1.5 decades. Letting failing companies fail in an order and capital preserving route is the best way to handle business failures in my opinion.

Yup.
And someone explain to me why the bad investments made by banks get saved by the gov't but the investors into one of the US largest employers are left out in the rain?

Someone forgot to tell the auto makers to line congressional pockets with gold. The barons of greed on Wall Street never forgot that lesson. Money buys power, power returns money.

All our Congresssmen have been bought and paid for. Name one who hasn't! Just ONE.

-Robert

Agreed :|