harsens_rob (harsens_rob) wrote,

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The Auto Bailout

The chairman of the House Financial Services Committee said afterward that members now generally agree that they need to provide some kind of aid to the automakers, although disagreement remains on how to do it.

I have some mixed feelings regarding Washington, DC continuing to pass out hundreds of billions of dollars in bailouts. Most of these are negative, I'll be honest. BUT - when it comes to the American Auto Industry, I have to say I'd like to see them get the money. Not without conditions (they especially need to be forced to retool their factories for hybrid cars) and not for completely selfless reasons.

My job is really hanging on an account with a car parts supplier who does a lot of business with Ford and GM. If those companies folded, its very possible that our client would fold (at the least, they'd probably go into bankruptcy to "restucture") and that would no doubt lead to their cancelling their contract. Without their contract, I see no reason for my company to keep my job.

However, beyond my admittedly selfish desire to stay employed, I don't understand the Congress' seeming hostility toward Detroit after they've moved Heaven and Earth to help out NYC/Wall Street/Banking. Next to the money they're dumping into the financial sector (with very little conditions, I might add, or the money wouldn't be hoarded... we'd have the loans occurring that the money was effing meant for) the money that the Detroit companies are asking for are really a drop in the bucket.

In addition, does anyone actually think we'll be getting 700B back from the banks?! Is anyone expecting/demanding that they pay it back?!

No. It's a bailout.

What Ford, GM and Chrysler want are loans. Loans that will be repayed once the economy bounces back. I don't understand why they're being hard-asses on this point.

Yes, they had every right to point out to execs about their waste (going to Washington, DC to beg for cash in their private corporate jets was un-flipping-believable) and they must insist on those same execs taking salary cuts and forgoing "bonuses" (how can there BE money for a bonus, if you're skating bankruptcy). And it's not just the CEOs that need to cut, either. So does the CFO, COO and everyone in the top offices. None of them have earned their wage and they need to feel the pain.

But the blue-collar worker has given up a LOT in the last few negotiations. This doesn't seem well known outside of the Detroit area, which is unfortunate. Believe me, the 'EVIL UNIONS' are not the problem, here, for the most part. There are some things they need to give up... the Job Bank, first and foremost. But, when you're talking about 'the union', remember you're talking about factory workers. Collectively, perhaps it appears they're making a fortune, but when you divide it by thousands of workers, they're not making THAT much. Certainly more than my non-union ass, but not nearly as much as the folks in charge. If you want the blue-collars to give up wages and benefits, then it's only right and fair that the white-collars give up more; they can more easily make the adjustment.

In the end, though, Congress needs to stop pissing on the unioned workers and they need to stop shitting on Detroit. We need those loans. Michigan has been in a financial hardship long before the rest of the nation joined the after-party hangover. We weren't flying to Washington then, because the credit was available for the car companies as they continued to retool, re-structure and re-negotiate contracts.

That credit is no longer there. And the money given to the banks has gone into their own pockets, instead of 'loosening credit' (big fucking shock) and if they're still willing to give more to Paulson and his failing plan, then they can cough up a few billion in loans to help us.

Michigan has been hurting long enough.

Tags: michigan, news

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