12 thoughts on “On the subject of Detroit Bailouts…”

  1. It is time for Chapter 11…and these bozo AutoLeaders have got to go.

    The CEOs of GM, Ford and Chrysler may have told Congress that they will likely go out of business without a bailout yet that has not stopped them from traveling in style, not even First Class is good enough.

    All three CEOs – Rick Wagoner of GM, Alan Mulally of Ford, and Robert Nardelli of Chrysler – exercised their perks Tuesday by flying in corporate jets to DC. Wagoner flew in GM’s $36 million luxury aircraft to tell members of Congress that the company is burning through cash, asking for $10-12 billion for GM alone. [1]

    [1]

    http://abcnews.go.com/Blotter/WallStreet/story?id=6285739&page=1

  2. Not to mention, there’s no purpose in trying to get us off foreign oil, because it simply can’t happen: [1]

    After watching the CEO’s of the Big 3 testify before Congress Tuesday, I believe that even more. Both Ford and GM insisted that the new CAFE requirements – 35 mpg by 2020 – were the absolute most achievable limit. Any new strings for the bailout, they argued, should not include higher fuel economy standards.

    I’m with Romney, save the industry — let Detroit go bankrupt [2]

    [1] http://www.hybridcarblog.com/2008/11/bail-out-automakers-to-save-chevy-volt.html
    [2] http://www.nytimes.com/2008/11/19/opinion/19romney.html?hp
    [2]

  3. Just my opinion, if Ford, GM, and Chrysler go into bankruptcy, they will never survive it. They would simply cease to exist.

    If you reduce, or eliminate, retiree benefits, isn’t that is a bailout – won’t the taxpayer will have to pay them?

    If we go to a single-payor health insurance, it bails out every American industry – including medicine. We are competing against a world that has a much more efficient healthcare delivery system.

  4. I am home sick today. I have been watching the testimony of the Detroit 3 +UAW Guy and related commentary on CNBC all day. The CEOs are clueless. It is an amazingly bad defense of their views.

  5. sonofsamphm1c ,

    Just my opinion, if Ford, GM, and Chrysler go into bankruptcy, they will never survive it. They would simply cease to exist.

    They may not. The UAW may not. This may be good for America. [1]

    If you reduce, or eliminate, retiree benefits, isn’t that is a bailout – won’t the taxpayer will have to pay them?

    Certainly there is a moral hazard in having any form of welfare state… however, the welfare is more-or-les equitable. If someone is of such-and-such-age, and has such-and-such income after losing a job so-many months ago, there is some predefined level of benefits.

    Detroit is seeking to flex its muscle to get special favors.

    If we go to a single-payor health insurance, it bails out every American industry – including medicine. We are competing against a world that has a much more efficient healthcare delivery system.

    We already have a socialized medical system. We just have one of the most expensive and least accessible versions of socialism imaginable. [2,3]

    PS,

    I feel bad for the UAW chief — the Detroit 3 CEOs fly in their private jets… did anyone invite him along?

    The combination of cluelessness, cruminess, and wastefulness is symbolic, of course, but still speaks that the Detroit 3 believe they should have a margin that would allow them to fly private jets.

    Hopes for Congressional bailout continue to dim: [4]

    WASHINGTON (AP) — The top Senate Democrat sought Wednesday to lower expectations for legislation this week to help endangered carmakers, saying it would be the Bush administration’s job to save the industry if Congress doesn’t.

    “No one should be overly concerned,” if Congress can’t agree on a bill to speed $25 billion in new loans to the industry, Sen. Harry Reid said. But the Nevada Democrat also said he still hopes that lawmakers can strike an elusive deal on emergency assistance in this week’s lame duck session.

    “If not,” Reid said in a statement, “it will still be up to the White House and the Treasury Department to take the steps that I believe are necessary and warranted.”

    I rarely find anchorettes attractive.

    [1] http://www.tdaxp.com/archive/2008/11/19/protectionism-and-the-detroit-bailout.html
    [2] http://www.tdaxp.com/archive/2008/07/02/republicans-for-national-health-care.html
    [3] http://www.halfsigma.com/2008/07/republicans-should-support-socialized-medicine.html
    [4] http://www.google.com/hostednews/ap/article/ALeqM5gbjFY-o07QeryRxtFR3oC1w_v1PwD94I3V600

  6. Well, in terms of private retiree pensions, there is a government insurance program for pensions. I don’t know for certain, but I think it would have to pay any corporate shortfall.

    On healthcare, I would presume retirees would fall back on medicare and eventually, perhaps, even on medicaid. I don’t know if the the big three have long-term care benefits for retirees, but should they, that would represent a significant liability to the taxpayer.

  7. Just that bankruptcy will have some somewhat hidden costs to the taxpayer.

    Obviously, if today is any indication, the stock market is not going to like no bailout. The Georgia runoff could be held with a market in the 4 to 5 thousand range.

  8. Just that bankruptcy will have some somewhat hidden costs to the taxpayer.

    Indeed. Maintaining a free market economy is not always the cheapest solution in the short term. That is why not everyone has one.

    Obviously, if today is any indication, the stock market is not going to like no bailout.

    Following the stock market for this would seem to be as foolish as following the stock market in deciding what interest rates to set. This was a popular game on cable news channels back in the late 1990s.

    The Georgia runoff could be held with a market in the 4 to 5 thousand range.

    On the subject of bear markets [1]…

    [1] http://calculatedrisk.blogspot.com/2008/11/four-bad-bears.html

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