Northwest Indiana Discussion

Okay I've been thinking about this Auto bailout thing. Okay say we give the auto companies this money to bail them out. People keep their jobs because now the company has money to operate and make more cars. Here lies the problem. Auto sales have dropped by 15.6%, due to consumers unable to get car loans, worried about potential job loss and putting off buying a new car due to the economy. So the car companies are making cars that people aren't buying. So now we have people being paid to make cars that are going unsold and the big 3 are accumulating more debt, because they are keeping the workers working and paying wages, but are not selling enough cars to pay for these wages and benefits. The car dealerships aren't selling as many cars, so they are in a bind too. So now what, do we continue to give them money to keep them afloat until the economy turns around, or do we let them go under. Unless more people start buying cras, no amount of money is gonna keep these guys afloat. I don't feel the economy is gonna turn around anytime soon, so how long do we keep bailing companies out?

I'm confused as to how giving them money is gonna help them sell more cars.

So far the bail out of the banks has helped the banks but very few of the people with screwed up mortgages


And the funny thing is, it is the people who the bailout was supposed to help because the Govt was going to buy up the mortgages,and now they are not

The banks are still in trouble. Don't kid yourself. They still hold toxic debt up the wazoo. Will the bailout help the auto industry? I'm not sure. The only thing I am sure about is if the auto industry goes under, I believe we will go directly into a depression and see a run on the banks. No one is considering the suppliers in this whole ordeal. I for one never want this part of the manufacturing sector to fall into "foreign" hands. Heck, it's really the only big manufacturing sector left. The big three should take a pay cut for now and take the loan but they should not take any TARP money or the government will have a strangle hold on them. I would like to see them do that and keep them afloat until Obama gets into office and let him have it on his plate as to how he'd like to handle the situation. Personally, F this global trade and economy. I'd like to go back to the good old days where we make our own clothes and manufacture our own products. The damn Chinese are killing us with their crap. Did you ever wonder if all of this is just a way to lower Americans wages and standard of living? The global way, where we are all equals, while those fat cats just keep getting fatter at our expense.

Just to show how these banks don't want the public to know anything here is an article from Bloomberg:

http://www.bloomberg.com/apps/news?pid= ... refer=home

Banks oppose any release of information because that might signal weakness and spur short-selling or a run by depositors, Scott Talbott, senior vice president of government affairs for the Financial Services Roundtable, a Washington trade group, said in an interview last month.


The entire article is worth reading.

Comedian, the banks wouldn't be in trouble if the Govt had actually purchased the bad loans like they said they were going to do originally.

Thats why the banks are still in trouble and why the bailout has failed

I just read an article on how some people who managed to get their mortgages fixed last year through the bailout are now in trouble again.

I think there's a lot more to it than just that. Just goes to show regardless of a fixed mortgage or not...they could not afford a house to begin with and still can't. So, the mortgage debt of all these foreclosed homes totals up to the multiple trillions that are unaccountable for plus the TARP money all ready spent? Read the Bloomberg article or not?

No the banks are in trouble, because they have not been forced to come clean and have full disclosure. The difference with the auto "bailout" is they have to come clean and have full disclosure.

The other difference is no one is calling for any CEO's of banks to step down or reduce their salaries,bonuses or benefits. They are also not asking the banks for detailed turn-around plans,business plans or cost reduction plans. The financial sector received a 700 Billion dollar no strings attached bailout but the Republicans in the Senate won't loan the automakers $ 15 Billion dollars. The only thing that is going on here is the Republicans are trying to break the UAW because of their political support of Democratic politicians.

I truly think that the Republican tried to "reach out" to the UAW in hopes they would give in. Since they didn't I really believe the UAW just put one more nail in their coffin.

You're absolutely right,Face. As a party, the Republicans are in serious trouble. They have been losing elections at the state and national level since 2006 and are totally out of touch with the average,middle class American.

10 Republicans voted with the Democrats...

That means the Democrats would have had 60 votes if the entire Dem caucus voted for the bill.

but they didn’t

so why are you blaming the Republicans?

Bet you can't tell me how Kennedy and Kerry voted can ya sparks?...

To a certian level I am blaming the Republicans for having a seperate set of rules for the "Big 3" than they had for the banks, AIG, etc..... And to answer your question, I can tell you how Kerry and Kennedy voted, but you didn't ask me.

We insured the banks if you will...

We don't owe the Big 3 a damn thing.