The coming financial crisis

[Diomedes]

I really don't know enough to have a credible opinion on this bailout, so I don't know if what's happened is good or bad.  I do think the Union should make concessions, but I also know they already have made some--agreeing last year to a drastic change in health care funding and dropping starting wages for new employees to non-unionized plant levels--and indicated they were willing to make changes to compensation as of the end of their contract in '11.   Most recently, the union agreed to delay the timetable they had expected funding to begin for a health care fund, or something like this.   Now they are being painted as the bad guys, and I don't buy it. 

[phillymic2000]

I really don't know enough to have a credible opinion on this bailout, so I don't know if what's happened is good or bad.  I do think the Union should make concessions, but I also know they already have made some--agreeing last year to a drastic change in health care funding and dropping starting wages for new employees to non-unionized plant levels--and indicated they were willing to make changes to compensation as of the end of their contract in '11.   Most recently, the union agreed to delay the timetable they had expected funding to begin for a health care fund, or something like this.   Now they are being painted as the bad guys, and I don't buy it. 

The top "bad guys" in this picture is the leadership of the big three, how long have we heard about billion dollar losses every fargin quater. The unions have made some concessions no doubt, but they still pull some fault. Cutting starting wages? is the car industry in a big hiring blitz we have not heard about. Waiting until 2011 for the union to make changes or the leadership is a bad idea, it won't happen. If this thing is really as bad as they say it is, then a bankruptcy would void the union contract completely. the pres could always give them the money from half the 700bil left right?

[Diomedes]

Well, Bush is claiming principle as the reason not to give TARP money to the auto industry.  Something like, it's intented to keep the credit market from dying, so it will not be used on other things.  Nevermind that so far he's been unsuccessful in that effort.

What concessions did the auto makers agree to?  Other than accepting a "car czar?"

What consessions did the republicans make?

One thing I read but don't know if it happened was that democrats were trying to require automakers to drop their lawsuits against being required to meet the new higher mpg standards.  Automakers and republicans opposed this step, god only knows why. 

[phattymatty]

the big 3 is going to get their money either way, but now instead of their own separate fund, the money is just gonna come out of the TARP. 

[Diomedes]

Yeah, looks like Bush is going to bail them out now.  He's not running for re-election, so what does he care?

[phattymatty]

i kind of don't have a problem with helping out the auto industry.  i hate the fact that the bigwigs won't be punished for all of their mismanagement issues, but really this country can't afford to have all of these people lose jobs.  the ripple effect, more than most other industries, would be disastrous. 

[rjs246]

That's the issue of course, but the lack of repercussions for the decision makers in these industries is appalling. Money coming out of TARP is better than a new batch of bailout money as far as I'm concerned, but continuing to socialize loss while privatizing profit is the worst of all possible scenarios. If the government is going to pay this much money they should have a stake in these companies and the money should be paid back in kind.

[phattymatty]

That's the issue of course, but the lack of repercussions for the decision makers in these industries is appalling. Money coming out of TARP is better than a new batch of money as far as I'm concerned, but continuing to socialize loss while provatizing profit is the worst of all possible scenarios. If the government is going to pay this much money they should have a stake in these companies and the money should be paid back in kind.

we definitely can't have our profits provatized, i'm with you on that. 


too fast, this guy.

[rjs246]

Cock.

[phattymatty]

man this bernie madoff guy is awesome.  ripping off rich dudes for 50 billion?  well done sir. 

[QB Eagles]

man this bernie madoff guy is awesome.  ripping off rich dudes for 50 billion?  well done sir. 

Norman Braman was in deep on that Ponzi scheme. Maybe he can move into Leonard Tose's old hotel room.

[reese125]

$13.4 billion going to GM and Chrysler

http://money.cnn.com/2008/12/19/news/companies/auto_crisis/index.htm?postversion=2008121912

[PoopyfaceMcGee]

[PoopyfaceMcGee]

[Diomedes]

good find