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  •  It's a bridge loan to...nah, that's too easy. (0+ / 0-)

    It won't make them viable.  They won't make money next year, they won't make money the year after that, they won't make money ever.  Private capital doesn't consider them credit-worthy now, which is only partially because credit is hard to come by nowadays, but in the leaner-and-smarter credit environment we hope for in the future, they won't be credit-worthy either.  

    -5.38/-3.74 I've suffered for my country. Now it's your turn! --John McCain with apologies to Monty Python's "Protest Song"

    by Rich in PA on Fri Dec 12, 2008 at 10:48:54 AM PST

    [ Parent ]

    •  And what to do about it? (0+ / 0-)

      I don't necessarily disagree that the American auto business is broken. It is. Clearly.

      Yes, this latest issue coming right now is due to the financial markets meltdown. But GM's been losing gobs of cash over the last four years. So what are they supposed to do about it?

      People scream murder about the UAW, but the truth is the union's made plenty of concessions and is willing to make plenty more.

      People deride management for bad decisions, but, seriously, GM isn't selling that many less auto than Toyota, and up until a year ago, they were selling more than Toyota and always had.

      People scream about "green" cars and the need for better gas mileage. Anybody who's looked at the real facts knows Toyota doesn't sell jack s--- worth of green vehicles, and their gas mileage isn't significantly better than GM's models, maybe a couple mpg on average, but that's it.

      So, what's the REAL problem here? Really? I'll tell you, but no one wants to hear it:

      RETIREES.

      The American autos support 1.1 million retirees. How the hell can ANY company support those kinds of legacy costs?

      In Europe and Japan, the government covers those legacy costs much better. Social security is nothing compared to the state pensions of Europe and Japan, same with the health care.

      If America is comfortable sending a million people out in the cold reliant on nothing but Medicare and Social Security, then the autos could shed their costs and get profitable real quick.

      This whole issue really isn't about the workers or the execs as it is framed. It's about legal obligations to retirees.

      If GM and Ford bankrupt, those costs are still going to the taxpayer, just not in a way to keep current workers employed.

    •  Also, it should be pointed out... (0+ / 0-)

      ...private capital itself is not credit-worthy or viable right now. The Fed and Treasury are propping Wall St.'s ass up. So, why should I care what they think about the viability of the autos?

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