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Big3 Bailout? Who're they gonna sell cars to? My friend lost his job yesterday.

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TomInTib Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-05-08 12:47 PM
Original message
Big3 Bailout? Who're they gonna sell cars to? My friend lost his job yesterday.
Vice-President, Auto Financing, Chase Bank.

He did not lose his job due to poor performance (he had been there for years), but because no one is looking for car loans.

What are Big3 plans to do with all these cars they're not going to sell? Stack them up at a railyard or something? That's precisely what is going on at Long Beach with foreign cars, right now.

Seriously, how will they induce John Q to get out of the house and onto the sales floor? I doubt that is even part of the "plan".
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BrklynLiberal Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-05-08 12:49 PM
Response to Original message
1. Iguess the only ones buying cars will be the employees of the bailed out banks
and the auto companies.
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Veritas_et_Aequitas Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-05-08 12:51 PM
Response to Original message
2. China. nt
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phantom power Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-05-08 12:55 PM
Response to Original message
3. They won't. That's why govt spending is the only way out of this.
If the Obama admin doesn't balance all these bailouts with some demand-side stimulus, it will be for nothing.
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Pale Blue Dot Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-05-08 12:58 PM
Response to Reply #3
4. No. There is NO way out of this.
We won't begin to recover until we stop deluding ourselves.
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phantom power Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-05-08 12:59 PM
Response to Reply #4
5. We'll recover when we realize recovery is impossible?
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Pale Blue Dot Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-05-08 01:05 PM
Response to Reply #5
7. When we admit what the problem is, we will stop making it worse.
Throwing more money at the problem when the problem is debt is only making things worse.

We are going to hurt for a long, long time and fundemental changes in how Americans think and behave are going to be needed. Until we admit that, we are only making the problem worse and the economic pain longer and deeper.

Sorry that my phrasing above was awkward.
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phantom power Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-05-08 01:12 PM
Response to Reply #7
8. I think what you say is true.
When I speak of govt spending for "stimulus," I'm really thinking more in terms of "mitigation." For example, the CCC in the 1930s. It sure didn't prevent the depression, but it helped keep a lot of people employed.

Bailing out corporations, all by itself, will fail. Because demand is collapsing. Some demand-side govt spending could help soften the blow. As Paul Krugman reminds us, "the govt is the spender of last resort."
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GentryDixon Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-05-08 01:23 PM
Response to Reply #8
11. My Dad worked for the CCC before we went to war.
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Jane Austin Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-05-08 01:04 PM
Response to Original message
6. Which is why I suggested yesterday
that the Feds use the $25 billion to buy cars off the lot.

They can sell them, finance them, use them or whatever.

But it gets cash in the system with something tangible to show for it.
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sarcasmo Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-05-08 01:13 PM
Response to Original message
9. No one has a job to secure a loan, hence no one is purchasing cars.
This is what they are not addressing during these hearings.
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tammywammy Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-05-08 01:19 PM
Response to Original message
10. The economy will rebound at some point
It may take another year or so, but the economy will rebound again.

Allowing the Big 3 to go under you're talking about another 3 million+ people out of work. The effects of them going under will reverberate through out.

The degree to which this recession is effecting various regions of the US is different as well. For instance, north Texas is still doing well during this time.
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Tierra_y_Libertad Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-05-08 01:25 PM
Response to Original message
12. And, if we "loan" them $34 Billion, how, and when, are they going to pay us back?
A question nobody seems to be asking.
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Medusa Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-05-08 01:26 PM
Response to Original message
13. A suprising number of economists are saying throwing money
at problems is exactly what we need, just pumping money into the system will help people keep their jobs and stimulate the economy. And I can assure you the impact of letting the auto makers fail will be much higher than some of you have any concept of.
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alfredo Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-05-08 01:29 PM
Response to Original message
14. My wife said that the government should make a large fleet purchase with
certain guidelines. The most important guideline is fuel economy. They must be high gas mileage and or hybrids or electric.
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CK_John Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-05-08 01:31 PM
Response to Original message
15. They could trade them with Cuba for some 57 chevy's. n/t
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TomInTib Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-05-08 01:49 PM
Response to Reply #15
16. Now, THERE'S a plan I can live with.
Gimme some chrome, man.
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old mark Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-05-08 02:17 PM
Response to Original message
17. People are not buying cars because they are afraid to spend the money.
You can not have all these lost jobs every month and not lose buyers for large dollar items.

Just how stupid are these executive types anyway?

mark
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screembloodymurder Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-05-08 02:26 PM
Response to Original message
18. Why not provide a temporary $3,000 subsidy for the buyers of American cars?

We could upgrade the fleet on the road with higher mileage, new vehicles and clear the dealers lots to allow for production of even higher mileage vehicles. I'll trade in my 20 year-old, 13 mpg SUV for a new one that gets 19 mpg. That's nearly 50% better mileage and I'll be driving a cleaner running, safer auto. Everybody wins.
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K Gardner Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-05-08 02:27 PM
Response to Original message
19. I don't understand how anyone is secure enough to commit to a 3-5 year monthly payment of $350-600/
month in this economy. I have another year left on a Honda Lease and I'll be sweating it until its paid off. Even the lease-traders aren't doing any business because people can't qualify to takeover a lease.

When this is done, I'll be buying an old used car for a few thousand dollars, then I'm done with this new car business.
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TomInTib Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-05-08 04:37 PM
Response to Reply #19
20. Yep.
I have made up my mind to never again buy a new car (unless I win the California Lottery).
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leftofthedial Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-05-08 04:43 PM
Response to Original message
21. they could give them a brazillion dollars
and I still couldn't buy a car, even though I need one.

Same with my girlfriend. My sister. Three musician friends. My stepsister. My nephew. My neighbor. Two coworkers at my part-time temporary teaching gig. My publisher. My publisher's husband. My daughter. My ex-boss. My friend who used to work for me.


...... If they don't find a way to create some jobs soon, there won't be anything left to save in this country.
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upnatom65 Donating Member (12 posts) Send PM | Profile | Ignore Fri Dec-05-08 05:23 PM
Response to Original message
22. give the money as a tax rebate
If the govt. would take the bail out money and give it to the car company's as a tax rebate to consumers, I think it would have a more effective result. If I bought an American car, the government would give me a 50% rebate on the purchase price. This would move money through the whole automobile chain up to the Big 3. It would also help move the current car supply.

The government could then take the amount of the rebate to the Big 3 and get a corresponding value in non-voting shares of the company.

Another possible addition that would make the cars and rebates available to more people, we could tack on the Obama plan to allow up to $10,000 withdrawal for 2008 & 2009 from our 401k's without penalty. This would give people a chance to buy a car without a loan. It would not create any more debt with interest for the country.

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