Does the federal gov't bail out GM?

[digitaldean]

Reports are coming out that GM has only enough cash till the end of the year at best (some are saying 3 to 4 weeks).

Does the gov't bail out GM or let them sink? If some of those estimates are close to correct, something would have to be done before Obama is sworn in.

AIG, FannieMae and FreddieMac, GM....where the hell does it end???

We run the risk of hyperinflation if this keeps up.

Thoughts???

[MJZiggy]

I voted they do it, but I sure don't like it.

[mraynrand]

Businesses fail all the time. The bailout is intended to placate the unions who seek to maintain their absurdly lucrative contracts and obligations. GM is a bloated pension and healthcare firm that can't possibly survive as currently structured. A 'bailout' would waste our monies and prolong the agony.

[Jimx29]

It worked, albeit not long term, for Mopar

[HowardRoark]

Businesses fail all the time. The bailout is intended to placate the unions who seek to maintain their absurdly lucrative contracts and obligations. GM is a bloated pension and healthcare firm that can't possibly survive as currently structured. A 'bailout' would waste our monies and prolong the agony.

I agree. The pensions will be one more thing that will be thrown on the heap of things the Federal Government (i.e. our kids….and that fact is really starting to piss me off) will be on the hook for. The Pension Benefit Guaranty Corporation will implode with these auto companies going under.

[swede]

Glenn Beck absolutely ranted for three hours when they bailed out BearStearns and I thought he was overreacting. He was actually rather prescient. Starting with Bear-Stearns the gummint has been on a bailout roll: smart industries would be wise to overextend and then get in line for free money before it all runs out.

I want a do-over on the 700 billion bailout. It would have been better to give the money to the idiots with bad loans than to let the criminals in the credit industry sit on the money.

And don't get me started on AIG--another 350,000 outing for the execs at a posh resort!

Greedy criminals on one side, irresponsible consumers on the other, and the most incompetent elected officials on the planet throwing monkey wrenches into the machine. Happy holidays!

[Kiwon]

Glenn Beck absolutely ranted for three hours when they bailed out BearStearns and I thought he was overreacting. He was actually rather prescient. Starting with Bear-Stearns the gummint has been on a bailout roll: smart industries would be wise to overextend and then get in line for free money before it all runs out.

I want a do-over on the 700 billion bailout. It would have been better to give the money to the idiots with bad loans than to let the criminals in the credit industry sit on the money.

And don't get me started on AIG--another 350,000 outing for the execs at a posh resort!

Greedy criminals on one side, irresponsible consumers on the other, and the most incompetent elected officials on the planet throwing monkey wrenches into the machine. Happy holidays!

100% agree.

[Harlan Huckleby]

these issues are so far beyond me.

the bailouts seem bad to me mainly because I fear they will prove insufficient. Just throwing good money after bad.

But what the hell do I know? Its all too complicated and depressing and overwhelming. The notion of GM going under is terrifying.

[mraynrand]

The notion of GM going under is terrifying.

It is bad for workers who planned their retirements based on impossible deals worked out by unions. But even if GM goes under, the workers won't disappear and the plants won't go away, much of the infrastructure would still be there. Businesses fail - it's a startling thing, but huge businesses have failed in the U.S in the past. You never know - the car company rising from the ashes of GM might be far better suited to compete in this century.

[Freak Out]

We should be spending this money on infrastructure for the future that will benefit all Americans instead of piling money on these fools. Roads, rail , power, broadband, schools...the list is long. GM should have been smartening up instead of building SUVs for the last 20 years. They fucking deserve to fail. The only way they get money is if we get something in return. Like a nice electric train or something. Why are we buying German light rail instead of American. Oh ya....they have an incentive to do it. Most of these bailouts were another fleece job on Americans that really wont benefit any of us in the long run.

[MJZiggy]

We should be spending this money on infrastructure for the future that will benefit all Americans instead of piling money on these fools. Roads, rail , power, broadband, schools...the list is long. GM should have been smartening up instead of building SUVs for the last 20 years. They fucking deserve to fail. The only way they get money is if we get something in return. Like a nice electric train or something. Why are we buying German light rail instead of American. Oh ya....they have an incentive to do it. Most of these bailouts were another fleece job on Americans that really wont benefit any of us in the long run.

[HowardRoark]

And don't get me started on AIG--another 350,000 outing for the execs at a posh resort!

On this subject, I think a little misinformation is out there. These so called “executives” really were/are insurance salesmen/people. You know, the people with VP of something or another on their business card. It is very normal in this business to have incentive trips for the very top tier of people who sell product. From what I understand, these were independent agents. If all the agents out there decide to stop selling AIG products (which is already happening because of the situation), you might as well forget about ever getting that money back from AIG.

As bad as it sounds in quick sound bites on the news, Congress shouldn’t be micro-managing these companies. I do agree that the true executives should not be getting these trips.

[SkinBasket]

Businesses fail all the time. The bailout is intended to placate the unions who seek to maintain their absurdly lucrative contracts and obligations. GM is a bloated pension and healthcare firm that can't possibly survive as currently structured. A 'bailout' would waste our monies and prolong the agony.

Word up. And Ford wants 30 billion to go straight from our pockets to the union pension fund. That is fucked up. The auto unions need to perish. Allowing the host to die may be the only way.

[sheepshead]

If they throw out the unions. Reevaluate every retired employee for need. Rewrite the health life and disability benefits for all retirees. Then and only then, give them tax breaks.

[LL2]

If they throw out the unions. Reevaluate every retired employee for need. Rewrite the health life and disability benefits for all retirees. Then and only then, give them tax breaks.

I agree! Union people are a lot like people on welfare. They feel they are entitled to a raise every year, free healthcare, etc.

I do think they should bail out the big three. If they can bail out all the corrupt bankers on wall street, why not bail out Detroit. If they do not the Big 3 will be the Big 0.

[SkinBasket]

If they do not the Big 3 will be the Big 0.

They already are the Big 0. Paying a company to make a car that I'll then have to buy doesn't make much sense to me.

[Freak Out]

Considering 1 in 10 jobs is tied to the US auto industry we need to do something.....is it just giving them cash to operate like they want..? Hell no. But there are ways we can help where everyone should benefit in some way.

[SkinBasket]

1 in 10 jobs or 1 in 10 pensions?

[Freak Out]

1 in 10 jobs or 1 in 10 pensions?

I thought that all/most of the pension costs and health care costs had been rolled over to Union responsibility during the last negotiations with the UAW? So you believe giving any assistance at all the the US auto industry is just throwing $$$ at the UAW?

[Harlan Huckleby]

We should be spending this money on infrastructure for the future that will benefit all Americans instead of piling money on these fools. Roads, rail , power, broadband, schools...the list is long. GM should have been smartening up instead of building SUVs for the last 20 years. They fucking deserve to fail. The only way they get money is if we get something in return. Like a nice electric train or something. Why are we buying German light rail instead of American. Oh ya....they have an incentive to do it. Most of these bailouts were another fleece job on Americans that really wont benefit any of us in the long run.

Freak Out's argument sounds good. But there is such a huge ripple effect of the auto industry, a huge chunk of the economy is related to the automobile beyond GM & Ford.

The Chinese don't let major industries go under during non-competitive periods, they protect and nurture them.

I don't know who's smarter, Freak Out or the Chinese.

I don't trust anybody's opinion on this issue, it's too difficult to predict the consequences of any action, or the consequences of doing nothing. I just close my eyes and hope Barry chooses the right course.