Auto industry double-standard
The_pantless_hero
30-03-2009, 13:23
If anyone has been watching the news, they realize that the auto-industry wants more money to stay afloat and the government is going "Wtf? No. Make yourselves viable companies then we might give you money." all while going to the insurance and banking industry going "Omg, they need more money, where are my dump trucks full of gold bullion Mr President! We must keep these companies afloat!" Why should we keep these undead banks walking around looking for money (because you can't feed CEOs on brains) when GM and Chrysler are threatening to go under and take an untold number of related jobs down with them? Is it just me or is the best way for the auto-industry to stay afloat to buy a failing bank and then beg the government for money so they can keep lending money instead of failing?
Vault 10
30-03-2009, 13:26
Finance managers make the Congress.
Car factory workers don't.
The Congress has their money in banks.
Not in Ford shares.
Sdaeriji
30-03-2009, 13:27
Because this is the first time the government has had to bail out these financial companies, while it is the third or fourth time they have had to bail out these auto companies.
Ashmoria
30-03-2009, 15:00
because they are still hoping that the banks will follow the plan and resolve the crisis while they are pretty sure that the "plans" that gm and chrysler brought them wont help.
Cosmopoles
30-03-2009, 15:09
The wisdom of simply giving large wads of money to any struggling business is questionable. There are a few key differences between the banks and the car companies though - a widepsread banking collapse would affect every household and business in the US, while a big 3 collapse would probably not cause as much damage. The failing banks can be separated into 'good' and 'bad' parts and buyers are (or will be) available for the good parts. The car companies are harder to separate and harder to find a buyer for.
Cannot think of a name
30-03-2009, 16:28
We didn't remove Depression-era separations in 1999 in the auto industry that would keep the auto industry from integrating vital institutions so that if one collapsed the whole thing would creating companies that are 'too big to fail' because they'd essentially take everything with them.
Plus, contracts to the architects and people directly involved in the cause of this mess are made on sacred parchment while contracts to people who worked in good faith and had no hand in the decision making are written on toilet paper.