Lot's of important stuff being discussed over at AutoObserver, so let's get to it:
Chrysler may not have enough cash on hand to get through the first quarter of next year.
Chrysler Needs $7 Billion -- Now
Some news about what the General is proposing to Congress has leaked out. Is it enough? I'm not so sure.
GM Wants as Much as $18 Billion; Prioritizes Brands
And of course, they need more money.
Turns Out, $25 Billion Is Not Enough After All
So, even if the automakers get what they want, will that be enough to get customers back in showrooms?
dougtheeng says:
06:10 AM, 12/ 3/08
There is my major problem with a bailout....even if it keeps the companies alive for half of next year, that doesn't guarantee sustained success for the future.
ateixeira says:
09:05 AM, 12/ 3/08
At least GM's new plan seems more realistic. I still think they have to make more sacrifices.
flicmod says:
12:36 PM, 12/ 3/08
http://www.lewrockwell.com/blog/lewrw/archives/024212.html
http://www.lewrockwell.com/alston/alston53.html
Two truly awesome links that everyone here should read.
cwc1 says:
07:54 PM, 12/ 3/08
Flicmod, thanks for the links. Quite interesting viewpoints. The second one also pointed me to another commentary about the loan guarantees made to Chrysler in 1979-80. I had never heard this perspective before.
http://www.heritage.org/research/regulation/bg276.cfm
krisj144 says:
02:55 AM, 12/ 4/08
Great links Flicmod.
I think the biggest shame is that groups like Edmunds aren't blasting these ill-fated proposals. Instead, they seem to be complicit in the affiar through their active broadcasting of the potential policies.
These bailouts are hugely unpopular and by not reciprocating this unpopularity, the media is once again failing their audience.
Why don't people talk about how it's possible that car manufcaturers might need to fail because their time is over? You run a business badly, by not recognizing change in the market and responding appropriately, and you fail. The railroads has a huge decline in prominence because they forgot that they were in the transportation business and thought they were just in the railroad business. Well, fewer people demnaded railroads then, just like fewer consumers desire fuel inefficient, poorly designed and equipped cars now.
I hope that what happened to the railroads doesn't happen here. The government stepped in and passed regulations to allow the railroads to remain competetive and in place put in a new agency to monitor for signs of abuse. However, regulatory capture occured and the railroad companies held on far longer than they should have, to the detriment of virtually everyone except themselves. Something very similar could happen here.
So much for laissez-faire capitalism....
cwc1 says:
05:50 PM, 12/ 4/08
This was not caused by "laissez-faire" capitalism. Why do so many people seem to hate economic freedom? I'll answer my own question - ignorance. Ignorance about what has actually led to and contributed to the problem. An overreaching and overbearing federal government that through its policies and bureaucracies has effectively put the Big 3 out of business, along with many other companies. Out of doing business in the free market anyway.
Here's some perspective.
http://www.autonews.com/apps/pbcs.dll/article?AID=/20081124/ANA03/811240355/1137