Deweyp

Bankruptcy Lets Capitalism Run Its Course

This is probably the most pathetic attempt to sound intelligent on any particular issue I have ever read. #1 Auto workers do not make $65 per hour, even with benefits. #2 Asian workers make less than $25 per hour including benefits, with the exception of Japan. #3 US autos are not inferior as you suggest. They are in fact recognized as exceptional (J.D Powers on Buick's rating as #1). #4 How can pushing back repayment of debt be worse than wiping out the debt altogether as you suggest?
If you are going to attempt monday morning quarterbacking at least find out the score .

How Bailouts Are Messing with Capitalism

This is without a doubt the best analysis of the genesis of the problem. Far too many authors and bloggers on the internet tend to display bias one way or another for their feelings about the visual problem (tip of the ice burg) rather trying to understand why we are where we are. We as a country need to focus on our manufacturing sector or we will end up selling our soul to those countries that do.


On Mar 29 09:49 AM Miken wrote:

> With regard to the auto companies, I believe that everyone is overlooking
> the fundamental issues. I don't think there is any doubt that the
> current Wall Street fiasco has damaged the ability of the American
> based, and even foreign based companies to survive. But even before
> the Wall Street mismanagement, the American companies were in a state
> of decline. The central question should be why the American companies?
>
>
> I don't think the simplistic answer is management or unions. I believe
> the simple answer is a view of the people running the country, and
> those on both coasts that a healthy manufacturing sector is passe
> and not important. The reasons I have drawn that conclusion are
> the following:
>
> 1. There is no articulated industrial policy. What do we think a
> manufacturing base should look like? What are the policies that
> should shape our industrial policy? Have we developed the infra
> structure to support our vision? There apparently is no appetite
> in Washington, or anywhere else in the country to have a dialogue
> on this.
>
> There certainly is in countries that are emerging as the new manufacturing
> base in the world order. In countries such as China, Mexico, South
> Korea, Japan, Thailand, etc. there is a very clear priority given
> to the manufacturing sector because they recognize the economic value
> stream connected with making things.
>
> 2. More fundamentally, is a manufacturing base important? Or should
> the country try to exist on retailers, services, and shuffling other
> people's money around (Wall Street)? I don't think so. See the
> value stream discussion in item 1.
>
> 3. What is our energy policy? The beginning of the current crisis
> for the American based auto companies was the sudden spike in gasoline
> prices because we have continued to let ourselves vulnerable to foreign
> despots and royal families whims to control energy prices. At $1.50
> per gallon, customer preferences are significantly different than
> at $4.50 per gallon. Were the American companies asleep at the wheel,
> or were they better at building larger cars and trucks than the foreign
> companies? Were they callous or were they giving the customers what
> they wanted? The evidence suggests the latter. Toyota, Honda, Nissan,
> BMW etc. all where trying desperately to break into the truck market
> without much success.
>
> When our foreign dependence allowed a drastic change in energy costs,
> not only were the American companies caught off guard, but others,
> especially Toyota was closing plants delaying start ups, etc.
>
> I don't care if prices are high or low, the auto companies can exist
> in either scenario. When Washington decides to address this, it
> will help them develop better strategies. After all, most of the
> American companies have world wide operations that were doing just
> fine making small economical cars using a variety of fuels from CNG
> to ethanol.
>
> Too long for a post, sorry, but I don't buy the simplistic answers
> to the question, "what's wrong with Ameican companies?".

TARP: Bailout or Money Pit?

Good article Chris, but the real unknown is how much farther down would these guys be without TARP. We have some very smart people working on the economic problem and I believe most have only the best intentions. It is always easy to throw stones at the moon. How many have actually managed to hit it? Only those that had what it takes. Before we condemn, let's be sure we have what it takes to do so accurately.