Driving Towards Disaster

The auto unions, under dubious leadership at best, got giddy with power. Most of a worker's energy went to protecting his job. Quality, integrity, and vision were not in the musclemen's vocabulary. You know the saying in Wall Street: Bulls make money, bears make money, but hogs get slaughtered. Detroit got exactly what it deserved.

The UAW made ridiculous demands and protected too many workers who rather than getting shafted on the job, just didn't want to work. The Big 3 allowed the UAW to do this, when everyone was fat and happy in the 80's, rather than say "no" and fight the good short term fight for long term gain. As far as SUV's go, the reasons not to buy one were valid 10 years ago as well as today. the majority of Americans just didn't give a crap about terrible fuel economy when gas was $1.50, and they will never care about the environmental impact of their consumption until it's way too late. The Big 3 represent America, they gave the consumer what they wanted.

For starters - Never take out a loan without taxes/insurance escrow payments factored into your monthly payment.

I had horrible credit and was able to finance a nice home for $125,000 at 7.93% that needed a little TLC. I made sure my taxes/insurance were factored into the payment and the payment was what I could afford. People should be smarter when making decisions. Most of this mortgage mess is the fault of GREED on the part of American consumers. The gov't only failed us in not regulating the mortgage/industry stronger in order to stop predatory lending. I also don't purchase things if I can't pay with cash. Try it, it's not so hard.

You should have dug deeper. First, the issues in Michigan are impacted a bit by sub prime loans, but are more so the result of the downward spiral of the U.S. automotive industry. Jobs lost, payments lost. Comparing the housing market to that of California or Nevada is comparing apples and oranges. Also, the comment about not enjoying the bubble required a bit more research. While Michigan did not have a rapid rise in values over a short period - they did have sustained, large growth in home values from the mid 90's to 2003. In fact, they averaged over 10% value increase a year during this period. As an example, I sold my Michigan home in 2001 for more than double what I paid for it in 1990. Not a bad investment at all. I think that if you are going to draw analogies you need to take a better look at the facts.

$2,600 dollars a month is a great pension for someone in the south. Our factory workers have no pensions and never made $2,600 in the first place. Our factory workers make around $1,000 to $1,500 a month. The Michigan workforce is going to have to wait on the local economies to normalize (ie: foreclosures bringing down housing costs) ,so more modest wages can actually sustain a family. No good news on this one, just politicians with empty promises on the campaign trail trying to get your vote.

I lived in Japan for 19 years and at one point, I wanted to buy a new Cadillac but the sticker price was 3 times more than what I would have to pay for it here at home so guess what, I did'nt buy the American car. Bottom line, the Japanese have measures to protect their industries and economy. Why can't we be as smart?

It amazes me that people blame Bush when the real problem is staring us in the face every day in the mirror. We have been to eager for to long to buy cheap goods at Walmart that are made in China, India, and Taiwan. Those dollars we spend go overseas into the pockets of foreign businesses, rather than to your neighbor who can then buy a new US auto. Time to wake up and buy American!!! All our jobs and homes depend on it.

It's refreshing to see everyone recognizing Michigan's Recession and not just a "bad time " for Us. Thanks Mr. Bush...

The 1980's will look like good times compared to what is to come ... we are just starting to pay the price for GW Bush stupidity, ignorance and arrogance. IF america survives, we will be suffering for decades.