Deweyp

Auto Stocks: Value Investments Gone Wrong?

By necessity the restrictive, destructive union rules are slowly being reduced, but not fast enough to prevent the wholesale damage to the big three. Elroy hit the nail on the head, but the protectionism involved extends to currency manipulation, which I believe is the biggest piece of the pie, but at the expense of the Japanese citizens, because they pay considerable more for the products imported to their nation than Americans do. They can do this and give their auto and other industries a huge leg up, mainly because the citizens of Japan have such a high savings rate. The big three have historically provided a higher standard of living than most other industries, and they should be applauded for that, except that, with world competition as strong as it is now, it has no where to go. The American auto industry is far more important than the jobs that are provided to our labor force, although that is important. As history can verify, the auto industry has been a key player in our national defense and will continue to be, if it remains strong. Allowing that industry to go away, as some would suggest, is not the smartest thing to do. We should support it (although with much oversight) and insure it continues to be a strong segment of our manufacturing base.