15 December 2008

Americans Watch the Auto Industry in Disgust

Like most Americans, I'm disgusted by what's going on with our Government and Big Business. First we give a massive bailout to those fat cats on wall street as they bitch and moan about not getting their Multi Million dollar bonuses. Like a Cancer that's been given a new lifeline, these companies are out there fleecing consumers, corporations and government alike, because they've been deemed "Too Big to Fail". Stupidity and short sightedness are now being actively rewarded by our federal government and by proxy by all of us. I remember several years ago when a friend of mine in the Mortgage business told me that there were new products available to where he could give an investor, mind you not a person who was going to live in the home, but an investor a loan for 100% financing, and to top it off, they only needed a 580 credit score! Who's the Rocket scientist that allowed that program to come to the market? It didn't take a brain surgeon to figure out that maybe, just maybe these were very, very bad investments of company money. They didn't care though, the corrupt Sallie Mae and Freddie Mac, with their Government cohorts were buying, and they were buying everything and anything.

Now we have the Big Three. Keep in mind that your average Joe line worker in GM gets 3X what the average Joe everywhere else makes in Salaries and Benefits. They claim that hey, they've made concessions, the new guys being hired today are hired at just 14 bucks an hour, AS IF THEY'RE HIRING!!! Those are not concessions, it's passing the buck to the next generation. Let's put this all in perspective. What if your neighbor down the street made 3X your salary and to top it off his boss made 1000X your salary. All of a sudden his boss finds that he can't pay him anymore so his boss comes to your house and asks you (who makes 1000X less than him and 3X less than his employees) to bail them out. How would you feel.

That my friends is exactly what is happening now with the Automakers. The big bosses are flying around in Corporate jets, which in case you didn't know, cost around $1400 to $8,000.00 per hour. The line workers are pulling down twice what most of us are and get about as much in benefits as most of us make. But WE are the ones who have to bail THEM out? Why?

I spent last night discussing with my wife that we're going to have to cut back on my son's ABA therapy for autism, because we simply can't afford the $800.00 a month cost anymore and we're supposed to help them out? Most of us are having hard times right now and most of us are doing what we can to mitigate those circumstances, without resorting to some sort of government bailout so why should we give them one? Let them do what Sears, K-Mart, Delta Air lines and so many other companies have done. File for bankruptcy, re-work your contracts to more favorable terms, cut out the waste and get back to business.


Do they think we're a bunch of Morons, that they're simply going to liquidate all the auto companies and fire 3 Million employees? GIVE ME A BREAK. You know and I know that will never happen. There's WAY too much money to be made in the Auto industry for them to simply give up. Consider this, GM and Toyota both sold about the same number of cars last year, and yet while GM lost over 38 Billion Dollars, Toyota's PROFIT was around 17 Billion. Maybe the government should give them some tickets to Japan to find out how to run their business.

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