Update on the Auto Bailout

Great News!!!! Let's see Republicans put the final nail in the economy's coffin, put another 3 or 4 million people out of work, eliminate NASCAR and then come back in 2010 and ask these people for their votes. Yeah, sure that's gonna work.

If society had just not become so advanced as to protect the unitelligent then Darwin's Theory could have taken hold (survival of the fittest) and most of the Republican legislators would not be walking the earth. Does anyone out there think any of these Republican legislators could actually make a living in the real world? They would be working in company mailrooms, asking us if we want fries with that order, doing janitor work, and living in their parent's basements.

unintelligent forgot the n typing too fast.

At this point, what's another $25 billion? The moral hazard argument was thrown out the window a month ago.

Hi JNS - I got sidetracked looking at the 50 worst cars before finishing the article. I think you could find some supply chain experts to explain the downstream impact to suppliers if cash dries up and these auto makers are forced into bankruptcy.
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I know it probably sounds like inside baseball stuff, but these individual suppliers with JIT (just-in-time) inventories will be brought to their knees once an assembly line comes to a halt.
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Detroit has outsourced some much of its parts operations, that workers affect go wellbeyond those of the auto manufacturers themselves.
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Please reach out someone who is familiar with supply chain. It gets even scarier that you could possible imagine to this economy if the the big 3 go down.

Q: What's the difference between Detroit and the Titanic...?
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A: They had a band!
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(However, I hear that a *fabulous* group of fiddlers will be auditioning in DC this week. They're supposed to do a cover of the 'Heads, "Burning Down the House". Break out the marshmallows.)

kbanginmotown--I thought there were no cup holders on the Titanic.

@Andy: You're right on the money. JNS alludes to this point in her quote from Dave Cole, about the link between suppliers and manufacturers. GM's parts spin-off, Delphi, has been reorganizing under Chapter 11 for going on 3 years now. Dana, Federal-Mogul, American Axle...all struggling.

@Andy#6: HA!

Where was the GOP "concern" when Halliburton came to town? Blackwater at the trough is no big deal. $2 billion missing and the Repugs in charge give a shrug.
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Frankly, I'm all for letting the Big Three learn a lesson the hard way, if that's what it takes. Why reward inefficiency? Look at Toyota & Honda. Those guys don't need a bail-out.

I get the same scary feeling about this I did about the original bailout bill or the government shutdown in the '90s. They're not REALLY going to do something this dangerous and stupid are they?
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I also wonder if any of the Republicans who are opposing this have looked at the number of people in their states/districts that driver GM cars. You know, those things they won't be able to get parts for or fixed in the future? The big expensive purchases whose resale value is going to drop to zero and that many people still owe quite a bit of money on?

I'm not even two paragraphs in and I already have BIG problems with your framing.

doesn't mean Republicans are willing to get rolled
the GOP has apparently reached its line in the sand when it comes to economic bailouts
$25 billion of the $700 billion [...] be redirected.

So you use a phrase that commonly refers to assault and theft, you describe the Republicans as holding firm on principles but your next sentence makes clear that what's at stake isn't additional Treasury funds, but money thats already been appropriated for precisely the sort of mission thats being discussed. I know you need to have a framework of conflict on which to hang your story, but this particular one is even more appallingly dishonest than usual.

I'll finish the story now, but you've aleady lost my trust.

One big competitive advantage Toyota and Honda have over the Big 3 is that the Big 3 are paying the medical bills of millions of retirees and employees, but in Japan those costs are spread across the entire nation.
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The Big 3 have been doomed for decades. They've made some lousy short term decisions (like putting all their eggs in the SUV basket instead of having the foresight to develop the Prius), but they are not playing on a level playing field because of their labor & retiree costs.
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I drive a Honda, BTW.

Fense,
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What I don't understand with Republicans is they talk about the UAW contracts, but they really arent the problem. The per hour costs for all auto makers in the US are pretty much the same.
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What is problematic (and unfair competition) is the universal healthcare? But wait, nobody wants to go there do they!?!
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This is bound to fail. I hope you guys are putting money under your mattresses.

Sean DeCoursey forgot his password Says:
Tuesday, November 18, 2008 at 11:50 am
I get the same scary feeling about this I did about the original bailout bill or the government shutdown in the '90s. They're not REALLY going to do something this dangerous and stupid are they?
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The Republican party gave us a full-throated endorsement of Palin. Never underestimate the ability of people to screw it up! This is what happens when you have no adult leadership in the White House. Idiots are given license to make inane comments when in fact somebody had better run the numbers and figure out which will bring on less pain---forget ideology---the luxury of aetheism is only permitted outside the combat zone.

The bailout appears to be necessary to keep the US Big 3 in business - temporarily. The bigger questions is - how to stay in business.

As has been pointed out, the Japanese automakers are not asking for a bailout. Perhaps there are lessons to be learned there. Why not incorporate the development successes they have demonstrated.

more at dskouson.blogspot.com