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What do you think will happen if bailout fails?

Tracy1011Tracy1011
in Parenting

I have been following this closely as I live in MI and work in industry tied closely to auto industry.  GM is our biggest client.

Just read online that they dont' have enough votes to push it through.  I'm not saying that there shouldn't be strict rules to get the money and concessions made, but honestly what does the government think is going to happen if 3 million plus people lose their jobs?

They HANDED over $700 Billion to bail out the financial industry, but won't LOAN money to save jobs?

Is there something I'm not getting?  I just don't understand it.  And the financial people went on some vacation after the money was given.  I don't know all the details but read something about that.

Ugh.  I'm nervous for the first time ever for my job, and all other people.  Anyone else???

I pray something changes....fast!

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Re: What do you think will happen if bailout fails?

  • Tasa_chanTasa_chan

    I live in Oshawa - one of the cities where there is a GM plant. Pretty much everyone here works in GM, and there have been so many layoffs already. Already there are houses going up for sale everywhere, and there have been a LOT of protests.

    I don't work in GM, but for the sake of my city I really hope things pick up. Although a lot of people here are protesting the suggestion of a pay cut - if you ask me I'd take the pay cut over being laid off.   Huh?

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  • Tracy1011Tracy1011

    That's another thing I don't get. They were interviewing a ford worker and asked if she'd be willing to concede on some union things to save the industry and she said no.  They "need" all of the bonuses and perks.

    Ummmm...if you don't concede, you won't have any bonuses, let alone pensions, to collect.  It will all be gone.

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  • JOEBunnyJOEBunny member
    I am sad for the people who work in the industry.  I worked in telecom, which had a terrible adjustment period with lots of layoffs, a number of people even committed suicide because of their economic prospects after working in the industry for years.  It is a crappy situation.  It is not however the same as the bank bailout.  The government did not just hand over money to the banks, they bought assets, yes, assets of questionable value, but they do have value.  Also, the banks effect every single person in the US, and the money supply for all businesses.  Auto manufacturers are just one industry and the leaders in that industry have proven for the last 40 years that they cannot get changes made.  I do not believe that bailing out GM is the right thing to do.  I think until they go bankrupt and get rid of the current union rules and pensions, they cannot compete and reemerge.  The only way to get rid of those obligations and constraints is to go bankrupt.
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  • Tracy1011Tracy1011

    Joe,

    While Im sure the big three are at fault for a lot of their problems, part of the problem they are having is because the financial industry had such problems so people couldn't get loans to buy cars.  That affected the big 3 eventually.

    I hear everything you are saying and agree big changes need to be made. I guess it's just hard when you face being unemployed and it feels like the government doesn't care.  Scary.

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  • belle204belle204 member

    I don't think the government doesn't care. I think they just don't want to give them money to squander away the same way they have been.

    image


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  • shouldbeworkinshouldbeworkin

    imageJOEBunny:
    I am sad for the people who work in the industry.  I worked in telecom, which had a terrible adjustment period with lots of layoffs, a number of people even committed suicide because of their economic prospects after working in the industry for years.  It is a crappy situation.  It is not however the same as the bank bailout.  The government did not just hand over money to the banks, they bought assets, yes, assets of questionable value, but they do have value.  Also, the banks effect every single person in the US, and the money supply for all businesses.  Auto manufacturers are just one industry and the leaders in that industry have proven for the last 40 years that they cannot get changes made.  I do not believe that bailing out GM is the right thing to do.  I think until they go bankrupt and get rid of the current union rules and pensions, they cannot compete and reemerge.  The only way to get rid of those obligations and constraints is to go bankrupt.

     First of all, it's not a bail out, it's a loan.  A loan because they can't get one from Wall Street due to the credit cruch.  The credit crunch the govt let the investment banks create and almost drive themselves out of business with because they allowed them to become over leveraged with no oversight. 

    Second, the last time Chrysler got a loan from the govt in 1979, the US govt made money on it. 

    Finally, the UAW is willing to renegotiate their contracts.  Just b/c they interview one person does not mean that the UAW isn't willing to negotiate.  It was just in the news today that they are and people have been saying for weeks that they would give things up if it meant keeping their jobs.  Who wouldn't do that?

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