The big three bailout.

Old Wizard · 11-20-2008, 12:57 PM

The big three bosses flew to Washington on their corporate jets, proving yet again that they 'don't get it'. Loans to their companies should include the requirement for wholesale changes at the top and their boards of directors.

evangilder · 11-20-2008, 01:04 PM

Complete corporate arrogance. Not only do they need changes in leadership, but a top to bottom look into their management structures, and business practices. Giving them 250 billion dollars is going to do what? Keep them open for another 6 months? Then what? We can't just keep giving money out to failing businesses, especially if they are stuck in their old ways, which clearly isn't working.

timshatz · 11-20-2008, 02:02 PM

A bailout would only delay the inevitable. Management, Unions, Product Lines, all of them are noncompetitive. They have more people taking money from the companies than are actually working there. Like it or not, some type of bankruptcy is inevitable in this failing economy.

Gonna be a rough 2009 guys. Save your money. Looks like a deflationary spiral is starting up. Nobody knows how that will end but it tends to feed on itself.

Thorlifter · 11-20-2008, 03:23 PM

The thing that just gets me is YOU KNOW these guys don't give a sh!t about what we think. They have 20 million dollar a year salaries and I'd hate to hear what their severance packages are.

pbfoot · 11-20-2008, 03:41 PM

Quote:

Originally Posted by Thorlifter

The thing that just gets me is YOU KNOW these guys don't give a sh!t about what we think. They have 20 million dollar a year salaries and I'd hate to hear what their severance packages are.

Ditto for the rank and file workers , remember the buyouts they got this year

Vassili Zaitzev · 11-20-2008, 03:53 PM

Quote:

Originally Posted by timshatz

Gonna be a rough 2009 guys. Save your money. Looks like a deflationary spiral is starting up. Nobody knows how that will end but it tends to feed on itself.

I'll take your advice Tim. I'm not gonna use credit unitl I get out of college and a stable job.

Messy1 · 11-20-2008, 03:54 PM

If I heard the story correctly on Fox news this morning, they showed a clip of a Senator asking the GM CEO if they would take a pay cut. His response was, No, I believe we are fine where we are at. The Senator got more specific and said, Well, I really meant you, would you consider a pay cut? The CEO replied, No, I believe I am fine where I am at!
Only 1 of the 3 CEO's (I believe the Chrysler CEO) agreed to a paycut I believe. I'll see if i can find a clip.

I'll see if I can find a clip.

Messy1 · 11-20-2008, 04:20 PM

Here's a link to one story! Only Chrylser's Nardelli agreed to a $1 salary! Lee Iacoca would be proud!

Big 3 fail to close deal on bailout - Los Angeles Times

timshatz · 11-20-2008, 04:28 PM

Not suprised about the heads of GM and Ford not accepting a pay cut. They truely don't believe they're at fault. Get rid of them. Wagoner is a turkey, fire him for Thanksgiving!

The whole industry is so full of useless mouths, so overorganized and underpeforming, that a clean out is due. Same for the Financial industry and most others. There are ton of guys out there, making a salary just pushing papers.

Probably the only reason the Chrysler guy would accept $1 a year is that's all they have left! Privately held so nobody knows their finances. But Benz dumped them for a reason.

timshatz · 11-20-2008, 04:34 PM

Quote:

Originally Posted by Vassili Zaitzev

I'll take your advice Tim. I'm not gonna use credit unitl I get out of college and a stable job.

Smart move Vassili. Credit for you isn't going to be the same as credit was for me. Going to be a bit tougher. 30 year credit card binge is ending.

Buy nothing of any value until after the deflationary spiral is over. The way it works is prices tomorrow are going to be cheaper than today. So, you don't buy stuff today and hold your money, so the sellers of the product lower the price to move the product. You see prices go down, so you don't buy, so the price drops again. There are other affects (reduction of the money supply, asset values dropping-such as homes and land, ect) but the end result is prices have to find a new level.

You actually may be in the best spot of any of us. Your in school (so pretty much out of the work force) and will probably be coming out in another 2-3 years. When you do, the market (both Job and Economic) should be improving with prices at a new low reflecting the delfated money supply.

DBII · 11-20-2008, 05:05 PM

I would be fine with a 20 million pay check also.

DBII

pbfoot · 11-20-2008, 05:22 PM

The Big 3 failing is big news here on both sides of the border , we have an engine and drive train plant in Canada and some AC Delco and other plants on the other side of the border , these guys are all living in a fantasy world the Union up here which is not UAW but CAW for Canadian auto workers are saying they will not give concessions . One of the rumours is the US gov't wants them to pull back all ops to the US that could cause a trade war .

evangilder · 11-20-2008, 05:31 PM

Finally, a voice of reason:

Quote:

"My fear is that you're going to take this money and continue the same stupid decisions you've made for 25 years," said Rep. Michael Capuano, D-Mass

And the government has tasked the companies with a plan showing how the money will transform them back into viable companies.

Officials: Dems to demand business plan from Big 3

Messy1 · 11-20-2008, 06:03 PM

Quote:

Originally Posted by evangilder

Finally, a voice of reason:

And the government has tasked the companies with a plan showing how the money will transform them back into viable companies.

Officials: Dems to demand business plan from Big 3

Amen!

pbfoot · 11-20-2008, 06:31 PM

How will going into chapter 11 affect pensions and such