Why AIG Gets Billions, GM Gets Scorn

Does have AIG have friends in high places?

Does have AIG have friends in high places?

does have Us NEWS AND WORLD REPORT HAVE an EDITING department?

Bugsy of MD @ Dec 17, 2008 23:42:26 PM

Case Study in Poor Education

One merely needs to read some of the comments here to realize that the state of education in this country is terrible. Misspellings and grammatical errors are rife. Some of the comments aren't even readable because they are so poorly written.

of TX @ Dec 16, 2008 16:35:41 PM

Bailouts

Well the term bailout does not really represent the survival of the fitest ethos. But as a whole in any system some poeple receive altruism and some dont. Its the luck, X, or surprise factor

Noel Luria of NY @ Dec 16, 2008 16:09:35 PM

No Bailout Unless...

Authors article: "Paulson has actually argued against using part of the huge $700 billion financial bailout fund to help the automakers, because they can’t pass a “viability” test proving they’ll stay in business long enough to pay back the loans. But AIG hasn’t passed a viability test either, and without federal help there’s little doubt it would be in bankruptcy."

AIGs problem was a true liquidity issue caused, as you note, by traders at one small division, and correctible by an infusion of capital. GMs problem is that its basic business model isn't correctible by an infusion of capital. It needs cost reductions. If they can't make those adjustments outside of bankruptcy, in exchange for government aid, then they should get the chance to make them in bankruptcy.

Kinabalu of CA @ Dec 16, 2008 16:08:36 PM

Have we thought about this?

I only noticed one comment on here about how all this could effect the Forgien worker. Seems like that person is thinking about it only because it's their own job. No one else seems to see the impact stretched far from the center of Union workers all the way out to the Forgien worker. This is the first time I have seen a comment by a Forgien worker anywhere. I have often wondered during all of this if any of them even seen the impact it could have on them if wages are slashed in the Union. Most of them I figured were afraid to speak out, due to firings and such. But I guess the internet is the only way for them. Pretty sad when you can get fired for voicing your thoughts in this country, but it's always been true unless you are Union. mmmmm wonder why? Just one other benefit that doesn't cost people money? Another benefit of being able to say, "No. That job is unsafe. I will not do it." Other than the proposed "Sure I'll do it, just so I don't lose my income." But maybe my arm?

In this matter losing part or half of your income could happen. By no fault of your own because people are out for blood and in some cases money, like Senators. Kami of NV has it right. And it doesn't take a Union member to see it. I'm not Union, never have been. Not even related or know anyone who is. Even a Forgien worker is scared of the impact this could have on them. I can see their agaony also. Why DO people praise Toyota and how they treat their workforce, but refuse to see this could damage their pay, and benefits also? ARE we just out for blood all around? I personally am not. I think all the workers in the Auto Industry deserve good pay. I don't believe good pay and benefits is what has happend here. If that was the case, how could wages and benefits be in comparison almost the same, and kill a few compaines, but not the others? I think it's past time some start looking at the bigger picture, beyond that of a Union, and how this could effect the livilihood of many more who are non union. The compaines some praise so much will become the one's we despies later because of this impact and they weren't asking for money, yet. Or maybe we won't? Maybe humans love to see others suffer no matter who is brought to the gauntlet. If so, I must be the odd man out.

Terry Snider of KY @ Dec 16, 2008 15:20:12 PM

people believe hype

Unions are not the problem. People just want to lower everyone's salary to create a slave population, but the big CEO's don't take pay cuts. And since when is $18.71 an hour a big salary? I earned more as an Executive Secretary! Unions have done a lot for the American worker. Prevented corruption and abuse in many workplaces, yet who is the first to blame? Unions! Only because they demand that the American Worker is treated fairly in the workplace so safety protocols are in place, and they cannot be fired without due process or invalid reason. Administrations spread the word that Unions are the reason they can't fire bad workers. It isn't true. Unions do not want poor performing employees representing their ranks. They have job stewards which will go with the employees to help not only the worker but the workplace. Sure blame the Union when it was the Union who gave people reason to go to work, to be able to afford to support a family, to not be abused and harmed in the workplace. Respect for the worker who helps the employer earn their big profits. Why is that wrong? Unions are necessary in the workplace. If you look at American History and how abusive workplaces were: fingers were lost, arms and legs, long hours, child labor, disgusting work conditions and profits stayed at the top. How many white collar workers would stand by and lose an arm in the name of their job? There was not workman's compensation. That said, I think GM SHOULD get a bailout. I think financial people should take it on the chin for once. They are corrupt and dealing with commodities that line their own pockets. GM is the backbone of manufacturing in America. Manufacturing is one of the pillars of the American Economy.

kami of NV @ Dec 16, 2008 01:01:36 AM

Pay for what you get.

UAW wanted job security and great pay for their workers and that is what they got. What they didn't care about was whether their employers were profitable or competitive and that is where they lay now. Unfortunately, when you let someone choose their own fate, it is usually what they get just not what they expect.

Aaron Tice of WA @ Dec 16, 2008 00:30:50 AM

AIG / GM

Even with the bailout, it's not like I am a federal employee with better benefits. Security won't alow me through to the Cafe in the Federal Building.

The auto industry is bleeding because of its unionized labor force, plain and simple.

The Union is a "cancer" that is eating away at the US Auto Makers, the labor plans, benefits, wages, etc need to be restructured as the companies file Chapter 11.

A $10B bailout package stalls the cancer, but it wont make it go away.

AIG Employee of NY @ Dec 15, 2008 18:18:25 PM