Anyone else that was FOR the bailout want to admit with me that we were WRONG?

Manufacturing is actually increasing in the US, albeit slowly but it should start picking up soon. The nations with cheap labor should not have received credit at such cheap terms these past 20 years and now that all is coming to a halt. US has a huge advantage when it comes to access to money. The "emerging" markets aren't going to have any credit ergo no manufacturing jobs no matter how cheap the labor.

 

Not to be "patriotic", but for issues like saving the auto industry (under strict conditions and new regulations) and if it meant neither I nor anyone in my family would ever have to worry about getting sick and not being able to pay for it I'd pay higher taxes.

 

The labor costs of the big three are $78 an hour and the Japanese car companies in the US have costs of $48 an hour. Something is wrong.

The US lost AMC back in the 70s and losing more auto manufacturers will definitely make the US poorer. But I don't see a solution throwing money at Detroit.

Paying higher taxes is going to improve your healthcare.

If the US would double the number of general practioners, the whole country would be better off.

 

Candidate for change my ass?

http://www.bloomberg.com/apps/news?p...Q6w&refer=home

Doesn't look like the economy is going to get much change with the new administration either....

 

What does that have to do with people being able to afford healthcare?

(serious question, not mocking)

 

Smatts:

china can fund all the manufacturing it wants. It has the capital to do so.

I'm sure there is capital for emerging economies such as India and Brazil. Can't speak for every nation....but I bet they have the access to capital to handle that need.

@Bogart re:

With regard to labor costs...so I understand. That is a competitive edge that just makes existing Detroit non competitive. I've seen the same numbers. have you or anyone else seen a breakdown of those costs. That isn't all salary....its salary and benefits and other things. What are the differences and elements that make up those numbers?

I'm sure Obama and the Dems are going to send Detroit cash....I'd like to see some knowledgable business people step in, at the very least, and tie that cash into something that would work...rather than just keep uncompetitive businesses afloat w/ cash.

 

How much money could the big 3 save by canning all their work and rehiring only non-mafia... errr I mean non-union workers or those who left the mafia, um I mean unions.

The unions are killing the big 3 and not building quality isn't helping them either, I am betting some of the same mafia rulers have a say in the quality they put out as well, probably forcing them to use only certain manufacturers for certain parts ie. Auto transmissions in small and mid-sized vehicles that last 50k miles when the imports can easily do 100k.

 

Do the Japanese automakers have union workers (the ones in America I mean).

 

From what I can find on a quick search is some are trying to unionize and "are fighting the perception that unions are irrelevant, even dangerous to Toyota’s future "

So I think the answer is no.

 

Exactly. I think it's something like $1,500+ for every vehicle bought goes towards a workers retirement? The benefits they give people are too good to be true.

 

Same, I think it would be a major blunder on Obama's part to just give them money with no strings.

My question though, is that they are only giving them $25 BILLION. Is that enough? Is that really going to have an effect?

 

One of the arguments for national health care and retirement benefits is that in Japan the auto manufacturers don't pay for health care. The national govt pays for it thru taxes. This enables the Japanese auto manufacturers to compete favorably on costs wherein the American manufacturers have these expensive health care and retirement packages.

On the other hand the overseas manufacturers with auto plants in the US, specifically the Japanese don't pay for health care.

 

GM just opened a new car plant in St. Petersburg region ($300 million), hows that they dont have money?

 

Fund with what? They have large dollar reserves but they have issued Yuan against it.

Brazil relies on getting and selling their natural resources to resource using economies like the US but mainly on that insatiable monster that was China. So it goes hand in hand, China is and will continue to crash and drag along the BRIC with them.

On another note, GM is a healthcare company and they make a couple cars too.

 

Add to the auto bailout, the FDIC is proposing a $25 billion bailout to homeowners and cities like Detroit and Philadelphia want a bailout to help them pay for healthcare and pensions. Housing starts are down to the lowest leve1 since 1959 so we will need a homebuilder bailout. Starbucks may need a bailout as well. People are having trouble paying for $5 lattes.

 

Why is this starting to remind me of the day a kid gets caught chewing gum and the teacher says... "Did you bring enough for the REST of the class"?

 

Alcoa will require a bailout soon and the company is too big to fail.

 

Fed is left with no choice except to print $$$$$$ , as rates are approaching 0% and companies from every corner demanding bail-out.......fed will once again flood the markets by printing dollars

 

One of the reasons for the bailout was to stop the stock market from crashing. With all the money the US has thrown at the market, the market has dipped below 8000 again. With the redemptions and forced selling, we are in a vicious cycle.

 

wouldnt it weaken the dollar then? Print some $$$ and lose 20-30% of their buying possibilities?