Potential grows for lame-duck session of Congress

[SgtSpike]

(CNN) -- A rapidly deteriorating situation in the U.S. auto industry may serve as the backdrop for a classic contest of political wills between the outgoing Bush administration on one hand and both President-elect Obama and the newly strengthened Democratic congressional majority on the other.

If President Bush refuses to help bail out the struggling Big Three automakers, the Democratic leadership is promising that it will do so, most likely in the form of a lame-duck session convened as early as next week.
House Speaker Nancy Pelosi, in a statement released Tuesday afternoon, called on key congressional leaders to work with the Bush administration "to craft legislation to provide emergency and limited financial assistance to the automobile industry under the Emergency Economic Stabilization Act."

According to spokesman Brendan Daly, Pelosi believes that the administration can assist the auto industry under its existing authority, but "in case [the administration doesn't], it needs to be done one way or another."​

Source: Potential grows for lame-duck session of Congress - CNN.com

Man, are we not allowed to let a company go bankrupt in America anymore? These bailouts are ridiculous...

Discuss. :thumbup

 

[JSamm73]

I agree. What the hell happened to letting PRIVATE businesses fail??? Serves them right, they had shitty management practices for years, let them go down!!!!! And why are the Dems so eager to help them out?? Because SO many lefty politicians have their grubby fucking fingers all up in them. Be it state contracts, goverment contracts, of course they don't want to see their profits slip.

 

[Peter Parka]

I hate the bail outs of the banks over here when the banks are taking the piss by giving out more bonuses this year than the cost of the entire bail out.:thumbdown

 

[Alien Allen]

bailing out the auto companies is kind of hard for me to be unbiased. Michigan is in the midst of a 3 year recession. a bad one. we are scared as hell as what will happen if the big 3 go bankrupt. probably would lead to near depression conditions is this state.

just as an example of what is happening yesterday got a notice we owed $29k to the state unemployment fund. For those that do not know it businesses pay the unemployment benefits. it goes to the state who then distribute it to those laid off. We have had enough layoffs over the last 3 years to have drained the fund. The reason they now want the money is that the fund ran out of money and the state had to be a bailout from the feds. Once that happens it triggers an automatic audit of each business. and if you have used up your funds it is mandatory that you pay back in when the state had to borrow money. we don't have to pay the lump sum. doubt many do as if they are in arrears they are already struggling. so instead we get stuck with a $67 per person per quarter fee.

if the big 3 fold this state is in serious trouble. how you all are glad that our governor is on Obamas economic adviser team

 

[BadBoy@TheWheel]

40,000 for a fucking pickup and they are going broke....

Travesty

 

[Alien Allen]

40,000 for a fucking pickup and they are going broke....

Travesty

even worse is the cost of one with nothing on it. how the hell can they cost that much.

on the flip side your plain old cars have been somewhat stable in costs over the last few years where before they always went up $1k or more each year. Right now they have a double whammy as the cost of steel has skyrocketed in the last year and they have not been able to raise prices to keep up.

I am not giving the big 3 any kind of a pass. they royally screwed up with having cars that are too much alike. each line of GM has almost identical cars with not much of anything different to grab your eye. and the mileage is better on the foreign cars. I need to replace my Durango. Too many miles and too lousy gas mileage. I was going to get another SUV but a smaller one. I looked at the US ones and they were 2-3 MPG or worse than the Rav, CRV and Rogue. Now with business so bad I am gonna have to wait it out but I was looking at buying the Rogue as it was the best at mileage.

 

[BadBoy@TheWheel]

Well what is going to happen, is the government is going to bail them out, and some bank will swoop in and take them over, if you ask me that's what they are trying to prevent.

Companies have no memory, money by the boat load will make you forget how lean times can get. Corporations are going to have to learn how to operate on less, just like consumers...

 

[SgtSpike]

bailing out the auto companies is kind of hard for me to be unbiased. Michigan is in the midst of a 3 year recession. a bad one. we are scared as hell as what will happen if the big 3 go bankrupt. probably would lead to near depression conditions is this state.

just as an example of what is happening yesterday got a notice we owed $29k to the state unemployment fund. For those that do not know it businesses pay the unemployment benefits. it goes to the state who then distribute it to those laid off. We have had enough layoffs over the last 3 years to have drained the fund. The reason they now want the money is that the fund ran out of money and the state had to be a bailout from the feds. Once that happens it triggers an automatic audit of each business. and if you have used up your funds it is mandatory that you pay back in when the state had to borrow money. we don't have to pay the lump sum. doubt many do as if they are in arrears they are already struggling. so instead we get stuck with a $67 per person per quarter fee.

if the big 3 fold this state is in serious trouble. how you all are glad that our governor is on Obamas economic adviser team

Good point, but I still don't like it. If you don't bail them out, then you make other people pay for their mistakes. If you do bail them out, you're rewarding them for making mistakes. It's a lose-lose situation all the way around.

 

[Alien Allen]

Good point, but I still don't like it. If you don't bail them out, then you make other people pay for their mistakes. If you do bail them out, you're rewarding them for making mistakes. It's a lose-lose situation all the way around.

depends on the details

Chrysler got saved back 20 years ago. and they paid it back and made a profit. sadly they did not learn the lesson.

anybody paying attention knew the bank bail outs were the tip of the ice berg

 

[SgtSpike]

depends on the details

Chrysler got saved back 20 years ago. and they paid it back and made a profit. sadly they did not learn the lesson.

anybody paying attention knew the bank bail outs were the tip of the ice berg

Ah, I didn't know about that.

 

[Alien Allen]

Ah, I didn't know about that.

from Wiki

Government loan guarantees


A Dodge Aries. The "K-cars" are generally credited with saving Chrysler from bankruptcy.


The Chrysler Corporation on September 7, 1979 petitioned the United States government for US$1.5 billion in loan guarantees to avoid bankruptcy. At the same time former Ford executive Lee Iacocca was brought in as CEO. He proved to be a capable public spokesman, appearing in advertisements to advise customers that "If you find a better car, buy it." He would also provide a rallying point for Japan-bashing and instilling pride in American products. His book Talking Straight was a response to Akio Morita's Made in Japan.
The United States Congress reluctantly passed the "Chrysler Corporation Loan Guarantee Act of 1979" (Public Law 96-185) on December 20, 1979 (signed into law by President Jimmy Carter on January 7, 1980), prodded by Chrysler workers and dealers in every congressional district who feared the loss of their livelihoods. The military then bought thousands of Dodge pickup trucks which entered military service as the Commercial Utility Cargo Vehicle M-880 Series. With such help and a few innovative cars (such as the K-car platform), especially the invention of the minivan concept, Chrysler avoided bankruptcy and slowly recovered.
In February 1982 Chrysler announced the sale of Chrysler Defense, its profitable defense subsidiary to General Dynamics for US$348.5 million. The sale was completed in March 1982 for the revised figure of US$336.1 million.[10]
By the early 1980s, the loans were being repaid at a brisk pace and new models based on the K-car platform were selling well. A joint venture with Mitsubishi called Diamond Star Motors strengthened the company's hand in the small car market. Chrysler acquired American Motors Corporation (AMC) in 1987, primarily for its Jeep brand, although the failing Eagle Premier would be the basis for the Chrysler LH platform sedans. This bolstered the firm, although Chrysler was still the weakest of the Big Three.
Another significant aspect of Chrysler's recovery was the revitalization of the company's manufacturing facilities, led by Richard Dauch[citation needed]. The factories were streamlined with more efficient machinery, more robots, better paint equipment, and so on[vague][citation needed]. The resultant improvements in efficiency and vehicle quality played a big role in saving the company[citation needed].
In the early 1990s, Chrysler made its first steps back into Europe, setting up car production in Austria, and beginning right hand drive manufacture of certain Jeep models in a 1993 return to the UK market. The continuing popularity of Jeep, bold new models for the domestic market such as the Dodge Ram pickup, Dodge Viper (badged as "Chrysler Viper" in Europe) sports car, and Plymouth Prowler hot rod, and new "cab forward" front-wheel drive LH sedans put the company in a strong position as the decade waned.

 

[BadBoy@TheWheel]

That and Hate Lee Iacocca if you wanna, but that guy tightened that ship up

 

[Alien Allen]

That and Hate Lee Iacocca if you wanna, but that guy tightened that ship up

the guy was brilliant.

wish he had run for President. he was thinking about it at one time but could not be convinced.

 

[Fox Mulder]

bailing out the auto companies is kind of hard for me to be unbiased. Michigan is in the midst of a 3 year recession. a bad one. we are scared as hell as what will happen if the big 3 go bankrupt. probably would lead to near depression conditions is this state.

Yet the idiots in that state keep electing Democrats--you'd think they'd learn a lesson!

 

[Fox Mulder]

The bailout of the auto industry are Democrats paying back the unions. Kind of ironic because the failure of the auto industry is in large part due to the union extortion--this is actually a bailout of unions much more than it is the auto industry.

 

[skyblue]

its bullshit.......the chances are that each and every company is running a profit.....only they're good at hiding it.

i worked for peugeot for nearly 18 years until they pulled out because we weren't cost effective....yet the previous year our plant alone cleared over £100'000'000 profit..perhaps down on the previous year but a huge profit none the less

straight away they opened a plant in slovakia.....cheap labour?.....this recession is just an excuse i'm afraid

 

[SgtSpike]

The bailout of the auto industry are Democrats paying back the unions. Kind of ironic because the failure of the auto industry is in large part due to the union extortion--this is actually a bailout of unions much more than it is the auto industry.

True, I hadn't even thought about the effects of unions on the situation... The ironic thing is that the unions are killing the one thing they work hardest towards - pay raises and pensions.

 

[Alien Allen]

its bullshit.......the chances are that each and every company is running a profit.....only they're good at hiding it.

i worked for peugeot for nearly 18 years until they pulled out because we weren't cost effective....yet the previous year our plant alone cleared over £100'000'000 profit..perhaps down on the previous year but a huge profit none the less

straight away they opened a plant in slovakia.....cheap labour?.....this recession is just an excuse i'm afraid

afraid your cynicism is off target on this one. this is real. very real to those effected by it. this is not a shell game being played. cars are not selling. steel prices have skyrocketed. just two major factors going on.