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Tuesday, November 18, 2008

Imminent Collapse?

REALLY?

Have you seen the utube video on www.gmfactsandfiction.com?


This video does all the math.
If GM/Ford/Chrysler collapse 3 million jobs will be lost. Auto Industry workers & retirees, parts suppliers, auto dealers and their employees will all be affected.
$156.4 Billion government tax loss over the next 3 years.
$25 Billion loan now or lose $156.4 Billion later?
Let's all take a trip in the WABAC Machine to the Chrysler Crisis Bailout - Time Magazine August 20, 1979

The Chrysler bailout of 1.5 billion is equivalent to $4 billion in today's dollars.

One of the major differences between then and now is that Chrysler is no longer a "public company". Cerberus Capital Management took control of Chrysler in August 2007, making it a "privately held company". Also, let's not forget that bailout from the Carter Administration had rules and conditions. It required that Chrysler "must draw up "an acceptable financial and operating plan" for dealing with the company's short-and long-term problems as well as spelling out its cash needs. This strategy will have to include sacrifices by everybody with an interest in saving the company: management, stockholders, employees, bankers and suppliers."

I have a question...

Why can't the Oil Industry, with their record windfall profits, float GM/Ford/Chrysler a loan?

I mean, when you think about it, the Auto Industry, with their failure to produce alternative fuel vehicles, is the Oil Industry's bread and butter. In fact, I'll go one further...the Auto Industry is virtually guaranteeing the Oil Industry's future record windfall profits.

1 comment:

Anonymous said...

This is so ridculous I had to laugh. The video uses scare tactics to paint a picture of completely losing the auto industry. It assumes we are idiots. Sure, if the entire industry VANISHED, all those things COULD happen, but probably wouldn't. To think that the automakers would roll-over and die, lock the factories, and walk away is pure fantasy. They are scared to death of having to change the way they do business and want WE taxpayers to subsidize their out of date methods and practices. THis is a pity party video. Poor, poor me! cry the multi-billion dollar dinosaurs. Pure, and crude propaganda. After watching this, I am contacting my Congress members... to recommend no bailout for Detroit.

 
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