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Sunday, March 1, 2009

25 Billion

This is going to be very liberal of me but I am going to say it anyway.


This is the type of thing I just love. As much bitching as I have done about the democrats I see good things already happening. And of course the same people that have voted them into office already bitching about what they are doing. The below article is just a typical example of getting what you asked for and finding ways to not be happy about it.


As congress meets this morning on a proposed $25 billion bailout for American auto manufactures they were met with a ton of resistance - and for the wrong reasons (go figure). The signs of protest calling reform in the industry, the unfair entitlement going to the manufactures (and not them just yet). Apparently everyone wants to be first in line for a hand out.


Part of the problem here is unions. People fail to realize that the American auto manufacturers pay millions of dollars annually to laid off union employees. No unions in place, no money paid out for nothing, losses would not be as severe. Unions are of the most liberal business concepts in terms of socializing capitalism from with the corporations. Every single time GM or Ford cut back jobs it is all over the news but what is not mentioned is those employees continue to be paid under the union by-laws. The picture that is deliberately painted is how bad everything is; not that these practices only further serve to hurt the company. The good thing is that a family that could otherwise lose precious income is protected, the reality is that those dollars spent on payroll for people who are not contributing to the business could be going to other things to help the business in times of need. So here we have a nice long line of blue collar workers protesting what they themselves voted for. Tsk, tsk!


In terms of reform, let's face it guys. America has been a culture of excess for generations yet the expectation is that a multibillion industry restructures itself in less than a tenth of that time. Hardly realistic, but expected none the less. Fact is, they are restructuring. More hybrids than ever before (a technology the are one generation behind on to begin with). What they have accomplished is truly monumental given the head start their competitors have; yet no mention of the fact that American hybrids actually have the best value from a weight to economy ratio. Ford has a turned to diesel and has manufactured a 'focus' that will get milage comparable to that of the Prius. Problem is it will not be released in the US because we have not embraced diesel technology and have little 'clean' diesel available. The diesel we do have is highly taxed to assess income from the trucking industry. (Hardly Ford's fault). Reform and restructuring take time; given the conditions - they are actually doing a good job of it. With it comes the good old fashioned "out with the old, in with the new" which means jobs will be lost. A double edged sword if I have ever seen one. We complain when they cut jobs and we complain when they are not reforming fast enough. There is just no pleasing some people I guess.


So lets get some things straight. Specifically mentioned in this article is the "gas guzzling". Not so much the case either. Collectively there are more than 45 models capable of 30mpg plus - most of them are actually 'mid sized' cars. We compare them to the competitions 'compacts' which barely edge them out. You gotta love the old Buick Regal. The largest of the mid sized class; you could pull up the driver information center and set it to monitor your mpg, set your cruise control to 65 and sure as a dime will get you a dollar on every bet made you would cruise at 35 to 36 mpg. The Series II engine was a force to be reckoned with. That facet of ability was grossly under played at a time when people looking harder than ever at Japanese models which were smaller and actually got less mpg. The full size trucks fall into the same conundrum. The GMC Seirra actually costs $2200 to $2900 less to own and operate than its rival Toyota Tundra and obliterates the Nissan Titan! What is happening here is that American car buyers have opted to support Honda, Nissan and Toyota for the wrong reasons. They think they are getting something they can not get from an American automotive manufacturer. We have walked out on them out of our own ignorance and our ability to be swayed by bold faced lies (Toyota Prius) because we are too lazy to do our own research and we fall for what anyone tells us. These companies are largely failing because we have failed them. Granted, they could have put better information out at critical times but believing these foreign cars get you more for less is a farce - yet we believe it.


And of course Mr. Super Conservative John Berroto. The Lexus driving 50 year old security manager who thinks that some companies should just not make it. (I need to go back and read some of my blogs because if I sound as stupid as he does it is time to get out my blue tie)! So here we have a man that has gotten somewhere in life and believes that only the strongest should survive. Oddly, every one of the strong was once weak - it is what they do in their weakness that defines their strength. It is safe to say that Mr. Lexus here has invested and his returns are consistent with the S&P 500 - which these manufacturers help stabilize. If they fold, John; you will be trading in your Lexus for a Chevy Cobalt. You are due for a mid life crisis anyway so get one of those fat exhaust pipes, lower it and get some flashy rims so you can show off on your trip to your favorite restaurant. While you are there, have a piece of humble pie for dessert; it's good for the soul. Idiot.


Our history as a nation has a lot to do with this. It took years for us to realize that natural resources are finite. We have awakened in an absolute panic about it and again we buy what people tell us, not what we discover through self learning. If you go to sleep ignorant, you wake up ignorant. "I bought my Honda Accord for it's reliability." OK, that is fine. My uncle only drove Buicks. Never a single break down or malfunction, I would call that reliable. In fact my first new car was a Buick. LOL! (Hush)! Not a single problem out of it and unlike my father I was not kind to my first new car at all! First oil change lasted 60, 000 miles before it started sounding like a diesel! LOL! It did blow a fuse once (I guess some would count that given how picky people seem to be getting these days). Either way, I am hard pressed to understand why it would be okay to allow the American auto manufacturers to fall for the wrong reason - our own ignorance.


++++++++++++++++++



Americans uneasy over bailout for automakers


By Matthew Bigg Matthew Bigg Mon Nov 17, 4:31 am ET


ATLANTA (Reuters) – As Congress debates legislation to help struggling automakers on Monday, many Americans said they were uneasy with the plan, arguing that while it may save jobs, it would reward companies for pursuing bad business practices.


In interviews from New York to Los Angeles, everyday Americans said the proposed $25 billion rescue plan was unfair and said it would make it harder to reform U.S. automakers.


"They need to restructure. If they get bailed out they are not going to do it," said Eric Smith, a paint contractor interviewed in Chamblee, Georgia, on the outskirts of Atlanta.


Democrats crafted the plan to help General Motors Corp, Ford Motor Co and Chrysler LLC, and hope to pass it during a post-election session of Congress starting on Monday.


The three companies, whose gas-guzzling vehicles have been losing market share to Japanese rivals for years, are lobbying for the money to help them restructure and survive the economic downturn.


The stakes rose on Friday, when Goldman Sachs suspended its rating on GM and said the automaker needs at least $22 billion in aid. Goldman also said it would be difficult for Chrysler to survive without help.


All three companies said Chapter 11 bankruptcy restructuring was not an option.


In interviews, many people said all of the options facing the automakers had drawbacks, including the proposed bailout.


"If they don't do it, a lot of people are going to lose their jobs," said Kevin Austin, 36, while fixing a car in a mechanic shop in Atlanta.


"But every big company is getting a bailout and the little people don't," he said.


The automakers are a symbol of industrial muscle in the world's richest country and their financial straits are seen as a sign of the trouble facing the U.S. economy as a whole.


Even so, the bailout is unpopular with many conservatives and others who say in a capitalist society businesses must stand or fall with a minimum of government interference. On Sunday, Arizona Republican Sen. Jon Kyl told Fox News American taxpayers should not be burdened with bailing out the auto industry.


"It's like nature's law: Only the fit survive," said John Berrotto, 50, a security director in New York who drives a Lexus and said he does not support the idea of a bailout. "Sometimes companies just don't make it," he said.


DOUBTS


In Los Angeles, which hosts the Los Angeles Auto Show this week, many people said they doubted a bailout was the best course of action. Some said it might be better for the companies to go bankrupt. Others said the industry could not survive long-term and that the bailout would be throwing good money after bad.


"I'm not sure they (the automakers) can be salvaged. Part of me says that if Honda and Toyota can make better cars in the U.S. with American workers, so be it," said Tom Reiter, who was interviewed in Los Angeles and drives a 2001 Jaguar XJ he said was a "big gas guzzler."


Scott Porter, a 34-year-old attorney, drives a 1996 Honda Accord, which he said he chose for its reliability. He said he opposed the bailout but might be willing to consider it if it was done the right way.


"Everybody is trying to claim they're poor. Everybody wants a handout. This (financial trouble) is something that's been a long time coming," Porter said in downtown Los Angeles.


"I don't see why it's a massive emergency all of a sudden," Porter said, adding that many other sectors were also in trouble.


Asked about claims by U.S. automakers that they could not make a profit manufacturing small cars, he said: "If you can't make a profit then you are going to go bankrupt."


(Reporting by Matthew Bigg; Additional reporting by Dan Whitcomb in Los Angeles and Rebekah Kebede in New York; Editing by Eddie Evans)

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