View single post by javal1
 Posted: Sat Dec 20th, 2008 01:49 am
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Grumpy Geezer

Joined: Thu Sep 1st, 2005
Location: Tennessee USA
Posts: 1503

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Good to see some well thought-out comments about this subject. You both sound torn on the subject of the bail-outs, and actually I salute you for that. One of the problems we have as a nation is we always want to fight things on ideological grounds. Unfortunately. ideology isn't always aligned with reality.

In my gut- just pure instinct - I'm opposed to bailouts. But how realistic is that? I would have liked to see Fannie Mae and Freddy Mac go under. Problem being they would take half the US mortgages with them. Instinctively, I would say let the car companies go under, after all it was their stupidity and greed that put them where they are. I could even justify in my mind the auto workers losing their jobs, since it's also their greed that got them where they are.

But when you start to think of the myriad of secondary industries they would take with them: sand pit workers who supply the sand for the auto glass, glazers who make the windshields, metal workers who fabricate, computer chip makers, plastics workers, retail auto supply store workers, and on and on. I really do think the economy could collapse. Do we want that for the sake of ideology?

Just two small points. The $75,000 per worker thrown around is deceiving. Truth is that (and this is an amazing stat if you think about it), it costs the Big Three $35,000 per year per active employee to pay the legacy costs of those already retired. That figure is added in to come up with the "they earn $75,000 a year" line. Sad to say, but someone down the line's going to have to tell the retirees "sorry, we tried, but your benefits are going to have to be cut or eliminated".

Second point: boy do we have a bunch of idiots in Congress (both parties). We have Dingell (D) from Michigan who has catered to the stupidity of the Auto industry at every chance, right up to today. And we have Shelby (R) and other Southern Senators demanding they go into bankruptcy because they think they're protecting the foreign carmakers in their states. Wonder if they ever stopped to think about all the non-union workers in their states involved in the secondary industries I mentioned will go under. Idiots.

Damn, now my fingers are tired. Good thread.

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