What to do about the Big Three?
By lilwonders
@lilwonders456 (8214)
United States
November 19, 2008 11:13pm CST
The democratic controled congress canceled a vote today on the fate of the big three bail out.
Reid (d) said its up to Bush's team to act.
Pelosi (d) said we do not need legistlation on this. Paulson can tap the fincial industry bail out if he wants to help auto companies, he just does not want to.
Not our responsibility was the white houses response.
Perino (White house press secetary) said if Congress leaves on their two month break without dealing with the situation than they bear the responsibility of whatever happens.
The white house and the republicans in congress are now trying to convience the democrats to sign on to a bill that was written in Sept. that would loan $25 billion dollars to the auto companies to help them make more fuel efficient cars but allow them to use it for their more immediate needs instead. But there is little sign that the democrats are willing to sign on.
It is a huge game of who is going to blink first.
Neither wants to make a decision. THey want the other side to deal with it because they do not want the blame for whatever happens. Neither wants the blame if the big three fail and 2.5 million jobs are lost. Neither wants the blame for giving them the money and bailing out jet setting executives.
Wonderful Congress we have. SO much for bipartisanship. Each side wants the other to take the fall. Is this really what we hired them for? Wether you agree with the bail out or not... you have to admit that our elected officials are behaving pretty badly especially consider the ecomonic crisis we are having. Tell me what you think about how they are behaving. Do you think they should stop being so childish and actually work together to get us out of this mess? It will shock me if they do get us out of this mess. All they want is the others downfall and could careless about us the american people.
4 responses
@Guardian208 (1095)
• United States
20 Nov 08
This is very interesting. I hope I don't step on any toes here but the responsbility for the mess that the Big Three are in falls on two sets of shoulders.
1. Mis-management by the corporate heads. (Take the 8 corporate jests that were needed to ferry 3 people and their staff to DC!)
2. The UAW.
Clearly the corporate heads have been running their respective companies recklessly. They have been spending as if money were of no concern. I am not here to talk about CEO salaries and bonuses since that is really just a drop in the bucket but more of a symptom of bigger problems.
The UAW is so firmly entrenched with the Big 3 that their contracts are killing the companies. There are many successful auto factories in the US. They are owned by the Japanese auto makers who have been much more effective at negotiating wiuth the UAW. As any business person will tell you, the largest expense you have as a business woner is employee expenses; salaries, benefits, taxes, SS etc. I don't advocate undermining the floor employees but there are ways to negotiate contracts so that the employess get what they need and the corporation can control expenses.
The solution? In my mind it would be in the form of loans NOT a bailout. Loans with conditions of efficiency. Iacocca did it with Chrysler. In fact, her repaid the loan years ahead of time. There is no reason that the Big 3 couldn't do it now as long as they are committed to a fundamental change in their financial structure.
@spalladino (17891)
• United States
20 Nov 08
From the little bit of the hearing that I saw, I believe that they had every right to be irritated by these pompus men sitting before them. They have been overcharging the public for years...have refused to produce more fuel effecient vehicles and have pushed the largest, most expensive and most gas guzzling monsters they can make as a status symbol for wealth. Now that folks can't afford to fill their tanks and aren't interested in spending upwards of $20,000 for a base vehicle, it's whose fault?
@lilwonders456 (8214)
• United States
20 Nov 08
That is what they were offering them. A loan not a bail out. But congress stopped the vote.
It is just me or does it seem taht in the misted of a fiancial crisis our congress is having very badly? I am not talking about the bail outs themselves but thier actual behavior. All the its your problem, its your fault, we are mad at you so we are going to try and get you back. My kids act less petty and mature than this and they are 5 and 2 (Yaaa my youngest just turned two).
@lilwonders456 (8214)
• United States
20 Nov 08
I agree I think they should have racked the auto executive over the coals. What I am upset about is all in fighting going on within our congress. They are behaving very badly with one another.
@spalladino (17891)
• United States
20 Nov 08
I don't know that either side necessarily wants the other to take the blame but that neithe side wants to be the one to make the decision, especially considering the current mood of the country and the way these auto execs mismanaged even their appearance before the House. They showed up in their oppulant private jets, failed to give House members the assurances they wanted that they wouldn't simply fritter away this money as they have been with their own money. I may have missed it but I heard no solid plans for change from any of the automakers...only sob stories about job loss...as if it was someone else's fault and not theirs. Maybe it was OUR fault for not continuing to buy a new vehicle every year while we've been struggling financially ourselves. I also heard, like someone else has already mentioned, that this money will only delay the collapse for a couple of months so why waste the taxpayer's money if that's the case?
@spalladino (17891)
• United States
20 Nov 08
"big boy (and girl) pants"...LOL! 
I do agree with you, someone...anyone....everyone should make a decision instead of stalling until the session ends so they can rush out of town.
I do agree with you, someone...anyone....everyone should make a decision instead of stalling until the session ends so they can rush out of town.@lilwonders456 (8214)
• United States
20 Nov 08
comparing how scared sh*tless they are to make ANY decision at all about it... I say put on some depends with the big boy pants and then just get it over with.
Sometimes making NO DECISION at all does more damage, at lest to their reputations. If they do not want it then say "NO". If they want it say "YES" but either way make a decision and stop being weines.
@lilwonders456 (8214)
• United States
20 Nov 08
Yep the pretty well said this money will only delay it.
It is a no win situation. If they bail them out, it will not solve the problem long term and most americans are not in favor of it. If they do not bail them out then 2.5 million jobs will be lost. Neither side wants credit for putting that many people out of work. So both sides are basically say I am not going to deal with this, you deal with this. Me, no I am not going to deal with you, you deal with it. Basically anyone deal with it BUT us.
THey need stop the bickering, put on their big boy (and girl) pants and just deal with it together (both sides together). That IS what we are paying them for.
@newtondak (3946)
• United States
20 Nov 08
It think it comes down to the fact that they all know they shouldn't bail them out but no one wants to be the one to "pull the plug".
@lilwonders456 (8214)
• United States
20 Nov 08
So basically they are already trying to find a way to blame the other for it. Nice to know we elected good responsible people to congress. They are really starting to make me REALLY sick.
IF congress doesnt get their act together and focus on the real problems than we are NOT going to get of these problems.
@Barb42 (4214)
• United States
20 Nov 08
I think they should loan the money to them and have them pay it back. This might learn them a lesson. But, if that doesn't happen, let them bankrupt and reorganize. That way nobody loses their jobs and they can renegotiate with their suppliers and the union and perhaps get the salaries down some. Reid seems to want to do nothing and then blame it all on the Bush Administration.
@lilwonders456 (8214)
• United States
20 Nov 08
I do not see how htey will not bail htem out. It would really hurt our ecomony to loose 2.5 million jobs in next couple of months.
Congress and the white house are just being petty and childish. THey need to focus on the problems not on makig sure the other gets the blame. Each is perfectly willing to let them go down....but only if the other side gets the blame. They do not care about the rest of us at all. They need a reality check.
@newtondak (3946)
• United States
20 Nov 08
It sounds good in theory, but they have also said that the $25M is just going to delay their collapse - in another six months, they'll be back in Washington wanting more money.
@lilwonders456 (8214)
• United States
20 Nov 08
I do not mean about the baill outs. I am talking about the enfighting,backbiting and finger pointing. That is what htey need a reality check for. I am soooo tired of them acting small kids on a playground fighting over a ball.
