Why AIG Gets Billions, GM Gets Scorn

who butters your bread

AIG gets billions of taxpayer money with no accountability. Need more just ask it comes without strings. They came up with a new way to get around the NO BONUS it is now RETENTION pay. Auto industry asks for a bridge loan and they get nothing. Millions of jobs and retirements on the line but no need for congressmen and senators to worry. AIG insures their LUCRATIVE pensions so they made sure they covered thir basckside.

As for the disparity in wages between the american auto worker and the foreign companies who really knows what it is. I have read several articles that puts the houry wages almost the same but the benefit package is different. Foreign companies don't have retirees yet so they have no legacy cost. So what do you want t ohappen to retirees, throw them to the dogs? Hey I guess that is what most of you high paid republicans want to do because track records so this country has been putting it to senior citizens for a long long time. The day will come when there will be no pension, no social security ( because we need to give it to illegals ) and all the edelery will be on welfare. Then I guess maybe you will just shoot us all because the FINANCIAL burden will be on you and gOD FORBID YOU HAVE TO PART WITH A DIME OR TWO.

nANCY of OH @ Dec 12, 2008 14:29:33 PM

part truth is still part B.S.

No caps, bad spelling and no punctuation, OK though trendy. But "pre madonnas" -- now that's hilarious.

hoosier of CA @ Dec 12, 2008 14:08:40 PM

If the financial people and economists knew what they were doing, we wouldn't have been ambushed by the financial collapse.

It is human nature to attribute to economists expert knowledge of economies, whether or not economic theories in their present state of development are valid or merely opinion based on the financial tunnel vision of persons for whom manufacturing and technology are a total blank.

Luther of IL @ Dec 12, 2008 13:32:33 PM

AIG gets Billions, GM gets scorn

With all due respect, this is a ridiculous article that ignores realities. The first reality is that AIG had a vast number of credit default swaps in place, and the collapse of AIG could have cascaded into runs on banks, panic, and worse. Fortunately, for all the criticism of the bailout to this point, the Treasury has stabilized the financial markets and people are no longer panicked about losing their 401k's, savings, etc. The second reality--which this writer ignores--is that GM (and Chrysler in particular) have been losing market share for years and were increasingly burning cash even when the economy was good. The Big Three financial models were established in the 50's and 60's--and have resulted in contracts, obligations, work rules, wages/pensions and more that are simply unsustainable, even if car sales do improve modestly (and that doesn't look likely). Putting money into these dinosaurs without a pre-packaged bankruptcy (or serious concessions from workers, bondholders, etc., which haven't happened) is insane. GM and Chrysler need to file Chapter 11. Chrysler should die and sell it's key brands to others to help pay creditors. GM should emerge leaner and meaner--able to face the realities of a global marketplace with a realistic cost structure.

Jay Williams of NH @ Dec 12, 2008 13:31:54 PM

Part truth is still part B.S.

As a former auto employee and gm stock holder, I find it hillarious that people would fault the republicans for wanting the UAW to help support the package by taking wage cuts. The UAW workers for the big-3 cost them 2 to 3 times more per hour in both wages and benifts then their counterparts at honda and toyota. And i dont mean oversees i mean right here in the US. Everyone from shareholders to executives to taxpayers are going to take part of this on the chin, but somehow the pre madonnas at the UAW walk away totally unaffected. Well if thats not the tail waging the dog i dont know what is. They should without question take deep pay cuts to help not just the auto makers but the tax payers as well. All this take about them wanting people to do whats right for america but funny that they wont put their money where their mouth is. This is a perfect example not of corperate greed but personal greed. Shame on all of you for saying its the republicans fault without having a clue.

A registered democrat of @ Dec 12, 2008 12:52:49 PM

Auto Bailout

The Union has to realize that their pay package has single-handedly "bankrupted" the entire US Auto Industry -- not just one company. If only one company was in financial trouble, the first thought would be to blame management -- but when the entire domestic industry is in the same desperate condition, it CAN'T be the responsibility of management, we must look for the common denominator. In this case it is labor, these US companies are getting killed by foreign competition whice has a much more advantageous labor cost (US manufacturers payroll costs are aprox 50% higher than their foreign competitors).

Give the auto companies Taxpayer money would be wrong for two important reasons: (1) without changing the labor contract significantly, they will need more money again soon, and still more after that; (2) why should a taxpayer who is getting paid an average of $20. per hour subsidize a worker who is costing his employer aprox $75. per hour?

Ralph Witkin of CT @ Dec 12, 2008 12:44:52 PM