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The other potential tragedy if Detroit Fails
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by villager | November 22, 2008 at 05:33 pm
140 views | 17 Recommendations | 6 comments
by CODY LYON
LINK AT POLITICAL CORTEX
For some, thoughts of a massive financial bailout for the American Automobile industry strike chords of unease that some might say, reward the lack of innovation and enterprise that has been exhibited by some foreign auto manufacturing competitors. Futher, the auto industry, at least on the surface, has appeared to be in bed with 'big oil' by continuously producing oversized automobiles, ala SUV's and the like, cars that only encouraged a glutinous collective consumption of oil, as if that fossil fuel were pouring from spigots of plenty throughout the world. And, to top things off, executives flew in private jets to plea with leaders in Washington, furthering the epidemic of anger at what many see as a nation where greed and excess rule the day. And, its easy to understand why people subscribe to that image, thus, for vast swaths of America, it's become increasing hard to have sympathy for the legends of American industry and capital.
But there is another side that must be addressed with some sort of legislative mandate because if the auto world of Detroit is allowed to fail and sink behind the veil of protection that bankruptcy provides, the potential for great human tragedy becomes increasingly real for large groups of vulnerable Americans.
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Most RecentMost Recommended Comments (6)
at 18:08 on November 22nd, 2008
I think if the auto industry goes down, it will be very very bad...
at 18:33 on November 22nd, 2008
The system is completely screwed up. These critical industries, like the car makers, like the big finance houses, they know if they go down it will be unthinkably destructive to the lives of millions upon millions of individuals and families - think of the hungry kids and starving old retirees ...
So, does this give them a licence to do whatever they want ? Things like continue to market products that the marketplace rejects, or write enough toxic loans to sink the world's economies ?
Sure it does !
Watch the Fed tomorrow quietly give Citibank 150 billion ...
Once everybody gets their handouts they'll squander it all again and soon come back begging for more ...
Obviously the system doesn't work !!
at 18:38 on November 22nd, 2008
I do not think that the auto industry is going down, however the North American auto industry is going down for sure, thanks in part to miss management and 40 years of sleeping or resting on their fame gained in the 1940 and 1950. The Japanese and Korean as well as Indian seem to take over and do even create Jobs in North America, look at Toyota, it has opened two new plants in Ontario Canada. Creating Jobs, we may want to report about that as well.
at 18:58 on November 22nd, 2008
If GM is truly unable to make a profit by selling anything but millions of enormous, inefficient vehicles, then maybe it should fail. I would much prefer to see any bailout targeted at the workers, families and small business that would suffer from a forced restructuring of GM in bankruptcy.
at 19:04 on November 22nd, 2008
Amen to that !
at 21:31 on November 22nd, 2008
GM, Chrysler and Ford already HAVE failed, they're just not bankrupt yet. The workers, families, small business, local municipalities, local school districts, etc. already ARE suffering. No matter what action the government takes -- bailout or not -- the people of Detroit have a rough road ahead. What a 'bailout' or a well-structured and well-manage Chapter 11 can do is reduce the damage that the complete demise of the American auto industry will wreak on the rest of the country.