In Defense of Detroit

Time for a definition.

obsessive
adjective
ALL-CONSUMING, consuming compulsive, controlling, obsessional, fanatical, neurotic, excessive, overkeen, besetting, tormenting, inescapable, pathological.

The Big Three are embarrassing us with their obsessive desire to be supported by hard working Americans who benefit not one whit from the activity. Please stop before the rest of the world laughs itself to death. We are better than this. This is America, for God's sake.

The Big Three got themselves in this mess, they need to fall on their own. Not until the Exec's and their Golden Umbrellas fail and fall, are they ever going to wake up to the reality of what they, and all the other greedy Execs out there, have done to the country as a whole. As an American, I'm tired of paying some billionaires problems off, while we have to suffer. I can guarantee you this, these Exec jerks aren't feeling the pinch like the rest of us.

The Big Three got themselves in this mess, they need to fall on their own. Not until the Exec's and their Golden Umbrellas fail and fall, are they ever going to wake up to the reality of what they, and all the other greedy Execs out there, have done to the country as a whole. As an American, I'm tired of paying some billionaires problems off, while we have to suffer. I can guarantee you this, these Exec jerks aren't feeling the pinch like the rest of us.

The Big Three got themselves in this mess, they need to fall on their own. Not until the Exec's and their Golden Umbrellas fail and fall, are they ever going to wake up to the reality of what they, and all the other greedy Execs out there, have done to the country as a whole. As an American, I'm tired of paying some billionaires problems off, while we have to suffer. I can guarantee you this, these Exec jerks aren't feeling the pinch like the rest of us.

Bailing out Detriot automakers is literally jumping head first down the proverbial slippery slide. Where can it logically end? What makes anyone think that by sinking in an additional $25 billion into companies that are burning through $8 billion a quarter in cash that somehow, those companies will "turn it around/" It's akin to throwing a life preserver to sinking Titanic. Bankruptcy court, though perhaps not a perferct fit for GM, is at least offering them protection from the cash drain while they literally re-tool their entire business model. Which is what is needed. A complete overhaul of how they build cars, their ridiculous cost structures, and their short-sided design management; not to mention their entire upper management! With the bank bailout, at least one can argue that we are hoping to fix a basic utility of our economy -- the flow of money. But with advocating the government to "loan" money to every poorly run business, proponents are asking taxpayers to flush our money down the drain. I would also point out that the Big Three are not the entirety of our auto manufacturing in the US. Let's not forget Honda, Toyota, VW, etc... that are currently producing better cars at less cost here on American soil, with American workers -- freed from the Mob-run unions.

Dear Big Three:
Well run businesses survive. Poorly run businesses fail. You are dead and we do not have time to give you CPR while we repair the rest of the nation's ills which can still be saved, especially since you are already dead.
Put everything in mothballs in a way similar to the way that ships were preserved after WWII. Lock the buildings and gates and let it all sit there for ten years. Then, after Three Legitimate Businesses have a chance to fill in the gap and do it right, see if you can compete with those three legitimate businesses.
We're sorry that you failed. But, that's business. American Business. Please die gracefully and quit getting down on your knees and asking for "just one more chance". It's over. Retrain yourself and try to do better next time.

I do not see the Warren Buffets or the Bill Gates or any other entity clamoring to help the auto industry. Let them die, have the funeral. Buck up and work through the tuff problems that will be created in the near term and then move on. Remember, you only get one funeral. The auto industry does not deserve to be bailed out again and again. It would be a bad deal for all Americans.

I think we should ask the CEO's to forget heir bonuses for the next 50 years since my kids and their kids will be paying for this bailout. I do not drive an american made car and will not buy one ever, they are poorly built, constructed. It is just about a better product and japanese and european cars are far better.
If we are so afraid of socialism, why are we helping these badly managed companies. Yes, I guess lots of people will lose their jobs, I also do not have job security but this is true capitalism. Stop whining and asking for money. The worst thing for me is AMEX, they will become a Bank in order to get the bailout funds. AMEX have been making a ton of money, just when you and me have to accept paycuts or making less this year or even next year, it does not mean our lifestyle and past earrnings need to remain the same or we will go and ask for help. No help for AMEX, no help for the Auto Industry as there is no help for hard working people.

Why has no asked the CEO of all the companies requesting bailout monies to cut their salaries in half and forego their bonuses for the next 5years, they should get nothing unless they are prepared to give up something

Daniel, if you've read the underlying report in total, (I have) then you'll immediately understand this report for what it is. It's an US automaker supported propoganda machine. The assumptions are ludicrous, and that's the nicest I could "say". Basically it says that the world will collapse if we let the real free market control. Nowhwere does it indicate the effects of spending tens/hundreds of billions to prop up the inefficient and overpriced automakers and the UAW. I'm writing a more complete piece at www.randallsopinions.com

ok, let's help the auto companies-- whose management were dumb and blind to the exhortations of John DeLorean in the 1970's. Sure, let's help those bleeders who have driven their suppliers to the poor house by demanding ad hoc price reductions so that they could report higher profits and ignore the reinvestment they needed in updating their plants and new technology. Let's do that, but let's also teach them how to run a manufacturing company. Let's implore the guys who successfully turned Chrysler around in the 80s. Ok, Lee Iococca has deserved a rest. How about calling on Richard Dauch who went about turning around GM plants, only to have GM ignore his work; who, as VP to Lee Iococca, instituted just-in-time inventory; and
who bought and turned a failing division of GM around to be a successful company. Everyone is lamenting the losses and how the guy from Boeing and the guy from Home Depot havent been able to do it. Well, how
about calling in the people that have done it. I worked at GM for 10 years. My mother and brother retired from GM in Michigan. Enough credibility for you?

It's hard to argue with any of the comments here. The Automakers do fill a role, I think that hasn't been expressed here. They retool for military production if we have a serious war and are isolated from or fighting with foriegn suppliers.

I have a hard time giving when others are just taking. Wall Street stil has there bonuses at year end. That shouldn't be. Unions should pitch in by reducing benefits and wages. We should employ tarriffs to level the playing field on those auto makers that don't build the auto in the states. Do these things and I'm on board.

Adios, Adieu, Sayonara and bye for now. I'll miss all of the people with functioning brains and won't miss the mouth-breather from the GOP party of hate. We've won the war and will clean up in 2010 and again in 2012. The Republican party will dwindle to 3rd party status and our country has broken free from fanatical rule.

Not Now! Not Ever Again! Se you around. Special regards to Pia, Olderwiser, Harley, Dochowl and all who have kicked the Republican's butt from here to Antartica!

Comment: I read the three comments below and can shortly say, "dito". One extra note: The "Big 3" might want to consult with China. They will be holding the note.

I guess if the Big 3 go down then all America will stop buying cars so the suppliers will have nowhere to sell their parts. So it makes perfect sense to throw money at preventing the inevitable! Besides Washington can relate and sympathize with the way management and unions ran the company. That is the same way Washington has handled Social Security, Medicaid and in the future national health insurance program. Why have a day or reckoning when there is so much to gorge on at the trough.
Besides as a small business owner I look forward to paying for the health insurance of other companies employees, when I can???t afford to pay the premiums for my own employees. Kind of like the taxes I pay to give large corporations in NY State tax incentives to keep jobs here for a few years until the breaks run out. Of course those deals never include spreading the wealth around amongst local businesses that are paying for the breaks either.
What a country! Let???s solve the dilemma of companies to large to fail by encouraging consolidation. That should work. You just can???t make this kind of stuff up. It takes the best and brightest minds in America to come up with these solutions.

Here's an idea: The first of the Big 3 to design and build a car that is affordable, gets 40 mpg and people actually want to buy, gets bailed out. The other 2 are on their own.

The ONLY reason to "bail them out" would be to cover the pensions and heath care of the workers. And the way the government has botched the last bailout, by throwing money around with no conditions and no plan, doesn't exactly instill me with confidence in the government's ability to get anything good done. As for the UAW, they helped sink the company, so let them sink, too.

STOP THE B.S.!! THE BIG 3 PAID WONDERFUL DIVIDENDS TO THE SHAREHOLDERS AND EXCESSIVE COMPENSATION TO THEIR EXECS AND UNION WORKERS, YET NEVER PUT A PENNY ASIDE FOR A RAINY DAY!. WHAT A COLLABERATION OF GREED AND FAILURE!
SO, O.K., LET'S DO WHAT WE DID FOR CHRYSLER 30 YEARS AGO WHEN THE GOVT HELD SHARES OF THE COMPANY AND ACTUALLY MADE A PROFIT WHEN BUSINESS
BOOMED. BUT, THIS TIME WE NEED TO KICK OUT ALL OF THE EXECS, MODERATE UNION & NON-UNION COMPENSATION, AND FOREMOST, SET UP A "RAINY-DAY" RESERVE FUND, BECAUSE IT WILL HAPPEN AGAIN IN 10 OR 20 YEARS.
SO

Get used to it, folks. This isn't a free market any longer, and every "big" company that employs lots of people and has lots of other businesses relying on it isn't going to be allowed to "fail." They're going to keep giving our tax money to businesses who will use it on corporate retreats and golden parachutes, rather than on good, legal business practice. The $780 billion is just the beginning, and everyone- from small businesses to the consumer- is going to feel the pain until these companies are FINALLY allowed to fall by the wayside. The entire country's big business system needs restructured, to be allowed to fall into smaller companies who will get the new investors we so desperately need.

If we as taxpayers are being asked to pay $25 billion dollars, why should it go to prop up the failed companies? What guarantee do we have they still won't implode 6 months, a year, two years from now? What is the common assumption about giving in to blackmail - once you start paying there's no way to stop?

There is no point in propping them up, and no point in allowing them to re-structure via a chapter 13 bankruptcy - if they could have restructured by now, they would have. They have proven themselves incapable of making the hard choices - more money won't suddenly get them to see the light.

Let's give the 25 billion to the state of Michigan instead, to pay for unemployment, worker re-training, housing assistance, etc. Allow the automakers to go into Chapter 7 bankruptcy, rather than 11, and let the proceeds go towards pension/health funds and if there is anything left over, the stockholders.

Any assets deemed salvagable will be purchased by some enterprising group of intrepid investors - let them rebuild a leaner auto industry, if that's possible.

The losses are inevitable, but at least this way everybody gets something, instead of most getting nothing. Postponing the pain by bailing them out will just be throwing good money after bad, and make the inevitable demise that much more painful. To just hand over money to three companies that clearly have run themselves into the ground is absurd.