Well, It looks like the government won't help GM

[Hylton]

Originally Posted by kanakattack

Another thing to think about is even if the auto companies get some financial relief, how many people would be able to qualify and get a loan to purchase a car in this economy. Without the help of banks to free up more of their monies for loans that don't require a credit rating of 700 or over the auto companies would be doomed.

That's something the government has to do a better job of right now. They have to force these banks to start giving out loans instead of using the money to buy more risky investments.

[xl1200r]

Kanak -

But think of this...

GM is losing appx $2.5 billion a month right now. That averages out to $30 billion a year.

2010 comes, and the healthcare stuff moves to that trust fund, and GM unloads a $50 billion a year expense. Now, overnight, they're making $1.6 billion a month without changing anything.

GM needs to make to 2010.

[xl1200r]

Originally Posted by Hylton

That's something the government has to do a better job of right now. They have to force these banks to start giving out loans instead of using the money to buy more risky investments.

Forcing banks to give loans to undeserving people is exactly where we're in this mess.

[Mr. Wyndham]

Originally Posted by xl1200r

Forcing banks to give loans to undeserving people is exactly where we're in this mess.

But what about forcing banks to not hoard their money out of fear?

Which brings to light another, MAJOR issue -- this market NEEDS to start radiating some confidence. Everything hinges on knee-jerk reactions...and most people with tons of money invested are scared out of their minds.:(

[1_2Many]

Truth, Justice, and the American Way.....SuperCamaro to the rescue

[Hylton]

Originally Posted by xl1200r

Forcing banks to give loans to undeserving people is exactly where we're in this mess.

Right now, people who CAN afford car loans are not getting them.

[UCF w00t]

Originally Posted by xl1200r

Forcing banks to give loans to undeserving people is exactly where we're in this mess.

On a scale of 1-10 where 1 is banks giving out loans to nobody and 10 being banks giving out loans to everybody; 2006 would've been a 11 or 12 and right now we're at like a 2 or 3. We need to be at least at a 5 or so. Not just for car loans but for business loans, etc. Loans allow new opportunities and growth. It takes money to make money!

[350 HRSS]

Originally Posted by Hylton

Right now, people who CAN afford car loans are not getting them.

This is what scares me...some of us have an 800+ rating...and when Feb/March comes around....

1_2Many...LOVE the pic, I actually laughed out loud!

[babyjulie83]

Truth, Justice, and the American Way.....SuperCamaro to the rescue

Oh my goodness....thanks for the picture! This has been a very sad and depressing thread and that picture made me laugh!

[rolnslo]

Originally Posted by dieseldave24v

Dragoneye,
do you have the sorce for these figures....not doubting you, but I would love to see that report

GM is quoting similar numbers: http://gmfactsandfiction.com/

In fact, the collapse of the U.S.-based auto industry wouldn't just impact the more than 239,000 Americans directly employed by the Big Three.

One out of every 10 people in America is employed in a service that is related to the U.S. auto industry.

If a plant closes, so does its suppliers, the local stores, the hot dog vendors, and the local restaurants.

The effect would be devastating in ways of which you never have thought:

Nearly 3 million jobs would be lost in the first year alone – with another 2.5 million to follow over the next two years

Personal income in the United States would drop by more than $150.7 billion in the first year

The cost to local, state, and federal governments could reach $156.4 billion over three years in lost taxes, and unemployment and health care assistance

Domestic automobile production would more than likely fall to zero – even by international producers, due to supplier bankruptcies

The credit crisis that is affecting us all is wounding the U.S. auto industry in many different ways. Carmakers can’t get loans to restructure and to produce new advanced technology vehicles. Suppliers and dealers can’t get loans for routine business, and customers can’t get loans for new cars.

[The_Blur]

The US government is obligated to help the auto industry. A lot of people work jobs related to the industry. Besides, the post-election government has announced commitment to changing federal policy regarding the auto industry in a way favorable to the industry. While the Republicans claim to not support the idea of additional loans* to the industry, they are the minority in Congress.

Allow me to add that most of the mass media covers everything but specializes in nothing. While they can bring so-called experts into the studio to give their "facts" (opinions), they almost never use appropriate theories or terminology to explain what is happening in the world. The biggest area that the media fails is political analysis. They get the events right, but they fail to understand ideology, agenda-setting, bureaucratic structure, jurisdiction, legal terminology, or comparative politics.

*Loans—the current $25B that has been passed for Detroit is not a bailout. It is in the form of loans.

[kanakattack]

Originally Posted by xl1200r

Kanak -

But think of this...

GM is losing appx $2.5 billion a month right now. That averages out to $30 billion a year.

2010 comes, and the healthcare stuff moves to that trust fund, and GM unloads a $50 billion a year expense. Now, overnight, they're making $1.6 billion a month without changing anything.

GM needs to make to 2010.

Agreed, and that would take some adjustments from all sectors including the government, unions, administration, investments and dialog with all parties to get to 2010. The invariable factors would include not only what the government does but things like oil prices, job security and general state of the economy in 2009.
In regards to another previous post, I do not believe that other foreign auto companies would buy out GM or any other U.S. auto companies as a whole. They may keep certain car models and badge them under their company but they would not keep all current models that GM, Chrysler or Ford has. All the jobs that manufacture the Silverado, Caliber or Flex may very well disappear. Imagine looking at a Camaro in a BMW dealership, a Toyota Challenger or a Audi Mustang. Could become reality.

[rolnslo]

Originally Posted by Hylton

Right now, people who CAN afford car loans are not getting them.

Yup, that's me. If the economy was in much better shape I would have ordered my Camaro already and be sitting here waiting for Feb 16th to arrive. But instead, I'm holding off until next summer to give the whole economy time to stabilize just to make sure I'll have a job to pay that loan payment with. When oil was up above $100, I worried about nothing but now with it near half of that, even working in the oil industry is concerning.

If people think the demand for oil dropped off before wait until you have 3 million more people not driving because they aren't working.

I say the government should quit giving help to the financial sector and provide assistance to manufacturing and retail operations. Financial people make money on nothing but speculation. At least manufacturing and retail make money by actually providing something tangible to people.

Chevy - Like a rock! Hopefully not one sinking to the bottom of the ocean.

[RCowan]

Originally Posted by Dragoneye

But what about forcing banks to not hoard their money out of fear?

The government doesn't own the banks YET. So there are a couple of ways they could do that: 1) Break the law and take them over and use their guns to make them do what they want under the banner of "the public good" or something sweet like that or 2) Somehow put them in a major financial Bind where they have no choice but to give over some/all control to the savior govt... you could call it a BAILOUT. Then the govt can approve the loans--sorry about the 15% interest rate...