Bailing out Detroit carmakers

September 10, 2008
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Executives of General Motors, Ford and Chrysler are optimistic about their chances of getting inexpensive federal loans to help tide them through the credit crunch and sales downturn.

The discussions, which have come to light in recent weeks, have the execs smiling like possums not only because the government set a precedent by bailing out Wall Street, but also because itâ??s an election year.

Theyâ??d like to see Congress OK the loans this fall. And it would be difficult for John McCain and Barack Obama to say â??Noâ?? to the swing state of Michigan as well as the auto-dependent states of Ohio and Indiana, which also are in play this November.

Should the government offer the loans?

  • absolutley!!! no questions asked. too many jobs in Indiana rely on the auto industry and Michigans economy is in the John because of these three companies.
  • Here we have another example of companies that have done poorly in the free market and now wish the government to bail them out. To bail out these companies is akin to giving these CEO's a free pass on all the poor decisions they made. It will provide them no incentive to improve themselves and they will continue to fall further and further behind the Japanese auto-makers. Why should consumers who have already rejected the products produced by the American auto-makers be forced to support financially the inefficient way that these companies do business?

    There are many jobs in Indiana that rely on the auto industry but more and more are coming from the likes of Honda, Subaru, and Toyota. Michigan has not done as good a job of diversifying its economy for the 21st century. If it continues to rely on companies that have had steep financial losses for over a decade now then perhaps they would be wise to encourage those auto manufacturers that are doing well to build plants in their state.
  • It doesn't really matter what anyone thinks. The pols will push this through no matter whom is at the helm.

    Shoot, the guys in DC that are supposed to serve us have failed miserably in doing their jobs. This would be one more example. Add your own conntributions to this list:

    1. Failure to adequately secure our borders
    2. Failure to control spending (remember it is Congress that spends)
    3. Failure to work toward energy independence (they've done just the opposite)
    4. Failure to provide any decent alternatives to the broken public education system (remember no child left behind which promotes testing over learning and quantity over quality
    5. Failure to focus on the issues important to taxpayers (remember Dan Burton and the silly investigation of drug use in Baseball instead of providing a sane energy policy)
    6. Failure to provide a simple, workable tax system (say hello to Fair Tax and goodbye IRS)

    So, what do we do - try to promote 1 of 3 Senators to the Presidency - why, they have ALL failed to do their jobs and yet they want to be promoted? No matter whom wins, we get what we deserve.
  • I don't believe the government should bail them out. Maybe this will make more U.S. companies examine their practices to be more fiscally responsible. When the big 3 were manufacturing bigger trucks and SUV's, they should have been doing a better job of planning for the future. These companies and most organizations affiliated with them have brought it on themselves. Each company is just like a spoiled child that will continue to make poor decisions until someone forces him to take responsibility.

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  1. If what you stated is true, then this article is entirely inaccurate. "State sells bonds" is same as "State borrows money". Supposedly the company will "pay for them". But since we are paying the company, we are still paying for this road with borrowed money, even though the state has $2 billion in the bank.

  2. Andrew hit the nail on the head. AMTRAK provides terrible service and that is why the state has found a contractor to improve the service. More trips, on-time performance, better times, cleanliness and adequate or better restrooms. WI-FI and food service will also be provided. Transit from outlying areas will also be provided. I wouldn't take it the way it is but with the above services and marketing of the service,ridership will improve and more folks will explore Indy and may even want to move here.

  3. They could take the property using eminent domain and save money by not paying the church or building a soccer field and a new driveway. Ctrwd has monthly meetings open to all customers of the district. The meetings are listed and if the customers really cared that much they would show. Ctrwd works hard in every way they can to make sure the customer is put first. Overflows damage the surrounding environment and cost a lot of money every year. There have been many upgrades done through the years to help not send flow to Carmel. Even with the upgrades ctrwd cannot always keep up. I understand how a storage tank could be an eye sore, but has anyone thought to look at other lift stations or storage tanks. Most lift stations are right in the middle of neighborhoods. Some close to schools and soccer fields, and some right in back yards, or at least next to a back yard. We all have to work together to come up with a proper solution. The proposed solution by ctrwd is the best one offered so far.

  4. Fox has comments from several people that seem to have some inside information. I would refer to their website. Changed my whole opionion of this story.

  5. This place is great! I'm piggy backing and saying the Cobb salad is great. But the ribs are awesome. $6.49 for ribs and 2 sides?! They're delicious. If you work downtown, head over there.