Dan Lambskin wrote:
so by that rationale had the government not made the banks loan people more money than they could afford and make them live within their means, people could still afford to buy cars and instead of sales being down by 50% the Big 3 could keep on operating until 2010 when many of the cost cutting measure they have already begun to impliment begin to take effect.
unfortunately it looks like enough of congress and America share your point of view, so we may get to find out if the sky really is falling...or maybe they'll come to their senses and determine that the risk of loaning out $X Billion (where X=whatever the lasted number they've come up with is) to see if they can retool and become self sustaning outweighs the risk of a bankruptcy which will lead to total disaster
You're banking on people buying cars though (as are they), and that's where the problem is. If "X" company doesn't make cars people want to buy, then they won't make sales. Cars are not "must have" products in the sense that no one "has" to go out and buy a brand new vehicle. There are plenty of used vehicles out there of varying mileage. So in an industry where no one "has" to buy a company's products, they should be run with the financial backing in place should they fail.
Look at it in a smaller scale. I open a bar. I hire in 3 bartenders, 10 waitstaff, 2 bouncers, and a live band. No one "has" to come to my bar, but of course I hope they do. If I "have" to have sales that night to meet my payroll for the night, electric bill, and lease, then my business model stinks. I should have at the very least, a year's worth of expenses sitting in the bank before even entertaining the idea of opening a business to begin with. And of course, if things get dicey, then changes and cuts happen to extend the life of that bank account so I have longer to get the club running right before I go broke. If my club is successful, then once 5 years of expenses are sitting comfortably away, at that point I'm probably safe from any kind of downturn in business. That is a safe and secure business model, something the big 3 do not have, but should. It's why I oppose a bailout for them. In all their years of doing business, they never built themselves a reasonable safety net, and that's just downright terrible business management.
And that's not even taking into account that they aren't making cars that people want. If this was an industry wide problem where each and every single car manufacturer was having serious difficulty and facing bankruptcy, then maybe I could have a tiny shred of sympathy, but there are several car manufacturers doing ok or at least well enough to not be begging for taxpayer money to throw away.
Yes doctor, I am sick.
Sick of those who are spineless.
Sick of those who feel self-entitled.
Sick of those who are hypocrites.
Yes doctor, an army is forming.
Yes doctor, there will be a war.
Yes doctor, there will be blood.....