Inching Toward a Bailout Deal for GM and Chrysler

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Once the nation can afford it, carry on, but with caution for the future. Surveillance would become necessary. This would save so many jobs as well as investors money. Great for the general ecvonomy as well as for the global impact.

Antoine Cachia of 12:33AM December 13, 2008

Another aspect that should be discussions is what will happen to the GM, Ford and Chrysler vehicles on the road if their respective manufacturers’ close shops. While the supply of parts is secure for at least ten years there is no doubt that the GM which you bought for $30k and is now worth $20k will become worth $10k if GM closes it's doors. Do we want that to happen?
Furthermore, consumer's remedies will be violated to the extent that all claims against these manufacturers will become worthless. I deal a lot with the automotive industry as plaintiff's counsel in auto dealer fraud and auto defects (lemon law) cases and I know for a fact a lot of my clients will loose significant sums if there is no bailout. A lot of cases where the vehicles are defective, where vehicles were involved in catastrophic accidents due to their defects and/or where the drivers were seriously injured – all these cases would become mute because the manufacturers would not be around to answer for their actions. We are already noticing a trend in defense tactics from their defense counsel whereby they are creating unnecessary delays in litigation in the hopes of the manufacturer going bankrupt. If this is about accountability then we need to set things right but making the manufacturers become accountable not by closing doors and taking off with what’s left but by correcting their mistakes and cleaning up their act. Moreover, GM Ford and Chrysler are such great symbols of America that letting them fail would be in part a failure by us all.

Hovanes Margarian, Esq. of CA 8:11PM December 11, 2008

Thats Why Big 3 are awsom

A.S. Shole of 2:10PM December 11, 2008

Either way there will be a loss of jobs and plant closings. Either way they will have to restructure. So let the Courts oversee the restructuring... NOT THE GOVERNMENT WITH TAXPAYER MONEY !
The argument that Bankruptcy would create a loss of confidence and people would stop buying American cars is bogus.
The airlines went into bankruptcy and people did not stop flying........Circuit City is in bankruptcy and people are still buying electronics.
I suspect the Execs fear losing their jobs, if the courts took over.

D.R. of IN 6:34PM December 10, 2008

This is a death sentence for Detroit. It prolongs the agony, but after the Government gets done dictating new product standards, "green" vehicles, electric cars, and other products which have not had consumer acceptance in the past, Detroit will be left with showrooms full of cars no one wants. Since when does a member of Congress know anything about car manufacturing or marketing?
The key problem is excess costs because of Union contracts. If Congress had insisted that Michigan passed a right-to-work law, it might have helped. But, everything Congress is doing is wrong-headed. There is not a lot of demand for the kind of products Congress is insisting on. So, why are they doing this? Somehow it seems they have no idea that Detroit needs to be cost-competitive, and responsive to consumer demands. Congress has a tin ear and this cannot do anything more than waste billions of dollars and guarantee the failure of Detroit's automakers and the unemployment of thousands of Michigan workers.
In short this will be a disaster.

Arthur E. Lemay of CA 6:08PM December 09, 2008

haha your tax dollers are goin into my dads paycheck

jeff of MT 2:27PM December 09, 2008

Haha, your tax dollars are going into my dad's paycheck and we get tax refunds every year too!

Iraq-E TV of MI 2:26PM December 09, 2008

Bailing out the big three auto makers is just a crutch, as a taxpayer i'm wondering why the government thinks this is a problem solver. Giving them money doesn't sell cars and thats ultimatly how they make money. All the loan is doing is paying their retirement funds, light bill, wages etc. Where does the income come from? Oh, that's right the american taxpayer buying cars and trucks. Why not give united states citizens the money with the stipulation that they must purchase a Ford, Gm, or Chrysler automobile. There, the auto problem is solved and we have money to stimulate the economy. My work is in the automotive field, so i need the auto makers to keep running and quit laying poeple off. To much overhead and to high of wages is most of the problem. 40 to 70 dollars an hour is rediculous for an unskilled worker. Maybee the union should help. If they don't the union will be history. My father retired from the union so I don't have a problem with them but I've seen three plants shut down because of them in a 30 mile radius.

Doug Scherer of MI 2:08PM December 09, 2008

The mainstream media and news commentators reported only the request for $34 billion to bail out the automakers made to the Senate on Thursday and the House on Friday. They failed to report Mark Zandi's testimony before the Senate on Thursday that it would take between $75 and $125 billion to keep the Big Three out of bankruptcy. Zandi is the chief economist and co-founder at Moody's. For a tax-paying parent with another parent and two dependent children, the $34 billion will increase my national debt by $453. If this is part of the $1 trillion deficit widely projected for 2009 under President-elect Obama, my family and me will be $36.50 farther in debt when I return home from work than when I got up this morning. Each day adds $36.50 to my share ($133,333) of the present debt of $10 trillion. Do the math!!! Our Senators and Representatives seem to know nothing about household economics. They bail out financial institutions, mismanaged automakers, etc. and etc. The government merely prints money. All government money is derived (appropriated, taxed, assessed, stolen - you choose the term) from taxpayers. Let the Big Three go into bankruptcy, so that they can get rid of poor management and lower the bloated wages from $73.20 per hour in total compensation to Toyota's U. S. workforce average of $48.00 per hour. Most of the $1 trillion deficit was already appropriated by Congress in the FY 2009 budget. It is ironic that the worst enemies of taxpayers were promoted or re-elected in last month's elections.
St. Peter, don't ya call me, 'cause I can't go.
I owe my soul to the comp'ny sto'.

Wallace Hoffman of FL 1:55PM December 09, 2008