artrogish

GM: Buyout Better than Bailout

Who is going to buy all these cars? This economic contraction is system wide. The American consumer, who makes up over 60% of the U.S. economy, has no more ability to spend. This situation will not turn around until jobs are created and incomes rise. Only then can a debt based economy expand.
GM and Ford have not had sustained net profits since 2002. They lose money for every car they sell. And for this we should "break free of labels like “socialism” and “nationalization” that are limiting our thinking”?
This industry will have to undergo many changes to allow new entrepreneurs to enter and reinvigorate the auto building process. The short term solution of "saving" jobs through a government takeover is short sighted and ultimately counterproductive.

Let GM Fail

The American Public was so outraged at the proposed $700 B. bailout that the first vote in congress failed. That failure sent shock waves around the world. It impacted the Presidential elections. However, corporations have money and influence and can afford to buy congressional votes. See if any of that $700 B is going to regional banks, or if it is being reserved only for the largest financial banks and insurers.


On Nov 18 10:45 AM dpro0102 wrote:

> So - how many 'Americans' does Wall Street employ and provide pensions
> for and health care for? Why is there so much hatred against Detroit
> asking for a loan - when you gave Wall Street $700 Billion - which
> has no repayment terms???
>
> TO REMIND ALL OF YOU AS TO WHY GM AND FORD ARE IN A MARKET WHERE
> NO ONE IS BUYING CARS - LET ME TAKE YOU BACK TO LAST CHRISTMAS ON
> WALL STREET:
>
> "Goldman breaks Wall Street Bonus record"
> www.msnbc.msn.com/id/1...
>
> "$15,000 bottle of bubbly? No Problem"
> www.msnbc.msn.com/id/1...
>
> "Bad year? Bonuses on Wall Street surge 14%"
> usatoday.com/money/ind...
>
>
> So - please tell me how you can look beyond the additional $40 Billion
> to save AIG (which must have been approved in about 2 hours) - but
> giving a loan to your domestic manufacturing industry is just such
> a horrible idea. Wall Streets mess is spilling out onto Main Street
> - and your mad at main street.
>
> Not too much press on the Wall Street of December 2007 these days.
> I WONDER WHY!?!
>
>
>
>
>

Let GM Fail

Blaming Seeking Alpha or Yahoo for the demise of GM is attributing a false cause to this long term situation. Martin Weiss foretold that GM and Ford were insolvent and selling their products at a loss in 2002. GM and Ford have only themselves to blame for not implimenting effective change management. Auto industry management repeatedly stated that they would allocate production toward high priced, fuel inefficient SUV to take advantage of the profit margins. Now that sales and margins are gone, their house of cards is collapsing. Should government and thus taxpayers bankroll the industry even as it transforms? There are other automobile manufatures who can startup and prosper with better products. See Ronn Motors for example. www.ronnmotors.com/cms/


On Nov 18 11:55 AM jod wrote:

> It seems seeking alpha and Yahoo are trying to bring down GM on their
> own. Anyone notice its all negative articles.

Let GM Fail

The opportunity for balance is provided in the comments.


On Nov 17 04:55 PM Mister Jimmy wrote:

> I really liked the James West that was featured in the '60's series
> "The Wild, Wild West", but this one is just another in a series of
> boobs given a voice on Seeking Alpha. By the way, given the one-sided
> tone of every auto industry article here, it's really starting to
> look they have an agenda. How about ensuring some balance in the
> views that you provide, guys?