Wednesday, November 19, 2008

Big Three Bailout, No?

I live in Michigan and though I have been against bailing out the big three automakers, my opposition has not been overwhelming because it could be devastating to our state. That is until now.

this article, I think I have finally had enough and am leaning heavily towards no assistance. Let them sink and let someone else take their place. It could even be good for Michigan in the long run. For decades we have been on a seesaw with the auto industry. Up for awhile then down with them. We need a more stable job market in our state.

Back to the article though. Keep in mind that these companies are worried that they could run out of money this year. They won't have enough to pay their employees or suppliers. So what did they do to show their concern:

The CEOs of the Big Three automakers reportedly flew private luxury jets to Washington to plead for a $25 billion taxpayer bailout to save their debt-ridden industry — ringing up tens of thousands in charges even as they cried poverty.

Recipients of eight-figure bonuses in 2007, the corporate cowboys used their executive perks — which for GM's Rick Wagoner include the run of a $36 million Gulfstream IV jet — to arrive in style as they went begging before Congress.

Wagoner, whose flight reportedly cost $20,000 round-trip — about 70 times more than a commercial airline ticket — told Congress he expected about $10-$12 billion from the requested bailout.

Rick Wagoner has made it clear he has no intention of stepping aside from the company he has run into the ground. What is far more likely is he will get a bonus this year and Heaven forbid they should fire him, this would cost the company millions.

The arrogance of these Sons of a Bitches is overwhelming. Especially this:
Wagoner...told Congress he expected about $10-$12 billion from the requested bailout He expected? What the Hell?

I think if we do bail them out, it should be under the condition that they clean house in Dearborn (Ford), downtown Detroit (GM), and Auburn Hills (Chrysler). Fire everyone. Start over. No big perks, sell the jets, bonuses for success only. If not, then no money.


The Unseen One said...

Bankruptcy will allow them to renegotiate some of the ridiculous union contracts that are crushing these companies.

Excellent blog, BTW.

cube said...

The back of the auto worker union must be broken. No company can survive paying more in ex-employee benefits that they do to current workers.

stormin said...

plus you have phony republican representatives who claim that the money you and i earn is not our money, but the governments. i'm glad to hear this moron was not re-elected.

shoprat said...

Capitalism works when idiots and robber barons are the first to pay for their stupidity. Let's start with Mr. Wagoner. His incompetence created this mess so he can pay the lion's share of his worth to pay for it. Good CEOs should be rewarded and rewarded well as they make the system work. Incompetent and corrupt ones should bare the brunt of the pain caused by their stupidity.

Chuck said...

I think we need to look at union contracts but we can't forget management either, they are largely the ones that got us into this mess. I'm with Shoprat in that the majority of management's pay should be in the form of bonuses. If a company is highly successful and flying high, pay them well. If a company is on the skids, let them get by on mininmal income. This would incentivize them to perform. As it stands right now, there is no real reason to succeed. This is after all the American way, work hard, be successful.

Stormin, we can't get past this notion that the government has money. The government has no money, it's ours for them to use.

Greywolfe said...

Wow. This one hit the button. The good news is that Joe Public is pissed at the idea of another bail out. My primary belief is that the bailout will indeed happen. It's gonna be payback time for the auto workers unions and their efforts to keep the dems in power.

The reason that I'm sure of this is the fact that even though 70% of the public was against the 700billion dollar bailouts of the financial industry, the Congress went ahead and passed it.

Friends and neighbors, get ready, the dollar is going to tank in Feb. of next year. If it doesn't do it sooner. I've been telling everyone to watch for the dow to hit 4k. Looks to me like it's on it's way.

Conspiracy theorists will tell you that most of this is by design and that the end result is the North American Union and the advent of the Amero as a new currency. In the past I've been the first to call for electro-shock therapy for these folks. Considering the "perfect storm" (sorry glenn beck. It fits.) that we're experiencing with EVERY aspect of our economy, and the fact that it started in the housing/finance sectors, the demise of which is either due to complete incompetence in Congress or by design by the same, and their ongoing bungling of the "crisis", is starting to make me wonder.

It's amazing that at every juncture, the "fixes" that the government keeps implementing just keeps making things worse. If you have any money, put it in gold coins now before the IRS starts trying to find a way to tax that too.

Chuck said...

Greywolfe, I have no doubt the bailout will pass. The GOP is only delaying the inevitable really. Come January Congress will pass the package + some and Obama will sign it.

MK said...

Well said Chuck, if they're bailed-out, the death will only come slower, the best thing that can be done for the long term will be for them to be forced to restructure and reform. One thing i will add though, is the state must get involved in the sense that the unions should not be allowed to hinder the restructure and reform. The costs that the Big 3 have to find money for aren't just from the fatcats, sure they need a kick and most of them need to be fired, but employee benefits will have to be re-aligned as well. It's a case of, would you like a 20% cut from now on every month or would you like a 100% (as in no job) permanent cut.

Always On Watch said...

Let them sink and let someone else take their place. It could even be good for Michigan in the long run.


Detroit dug this hole themselves. Let them dig their own way out of it, not sponge off the taxpayers.