Discussion in 'Political Discussion' started by NEPatriot, Nov 14, 2008.
UPDATE 1-U.S. automakers bailout outlook in doubt-senator | Markets | Markets News | Reuters
I just saw that congress is prepared to allocate $25 billion to the US auto industry. That's what you get for posting yesterday's news!
we have to wait UNTIL monday
UPDATE 2-U.S. Senate to take up auto bailout on Monday | Markets | Markets News | Reuters
If the auto industry fails, we can be sure to end up in a depression. That's just how important/big that industry is to our GDP. I believe domestic auto sails represent about 3-4% of out GDP.
Hey, we may end up in a depression regardless.
Remember, depression just means a longer and deeper recession. It does NOT mean things have to get as bad as the "great depression" or even look similar to it.
I'm not sure if we can hang on to it. It doesn't take long to go from 'depression' to 'great depression'.
If we are spiritual at all, now would be a good time to ask for help. It's out of our hands.
who do we ask when we are broke?
lol! Personally, I always like the saying "Work as if it all depends upon us and pray knowing it depends upon God"
As long as we continue to wash our hands of our terrible education system, we can't expect to compete with Japan in technology manufacturing.
If it can't stand on it's own, how exactly does it represent any % of GDP? This is more of what Shiff talks about when he says that it isn't "real growth." People aren't buying American cars and when they are, they are leasing them beyond their ability which is the same as taking out loans you can't afford meaning that it's all just smoke and mirrors.
If you go even deeper, what competitive advantage does America have that should warrant it keeping the same huge economy it's been propping up for years? I can't think of one except the military, which is just a frightening thought.
Honda and Toyota are making money building cars in the US. They don't have the UAW as a millstone around their necks however...
They also make a superior product, as sales show. Blame the unions though if that's easier for you to rationalize.
And as soon as America's debt catches up to it's consumption, and it's starting to, they will suffer also, and are.
Exactly! He was talking about producing real goods and services that result in real prosperity. We are slowly undergoing an adjustment in the real values of our goods and services.
Look for plasma's/LCD's to all sell for under $1,500 in 2 years and most will be under $1,000. We're also going to have to somehow adjust our wages downward. Primarilly, from the top, down. You can't have an economy contract without either;
A. People unemployed
B. Lower wages
The thing about our economy is we are on our way to permanent contraction, not a temporary one like most recessions. Since everything was over-inflated, we have to get back to real values on everything.
The reason US automakers are in this situation is they purchased sub mortgate loans. If it is true, they deserve it.
Is there anything at all you are knowledgeable about?
does he answer your prayer?
I guess the other industry we have a competitive advantage in would be entertainment, but that's certainly not enough to prop up an entire enormous economy.
An entertainment and military-based economy is an Orwellian spectacle I don't even want to imagine, but I just can't see how the US could naturally compete in any other industry.
I'm not entirely opposed to certain tariffs though, if the US stops throwing it's weight around through the WTO to break them down in other countries. I'm pretty sure that the consumption-sickness that comes from years of arrogant, unrestricted capitalism is about to fade or we are seriously screwed. American ingenuity is what built the economy up and unfortunately, that ingenuity has been replaced with over-consumption and worthless production.
NEPatriot aka Sgt. Schultz
New US cars are very good also, however the cost basis for these cars are vastly different. Toyota makes $1500 selling a Corolla made in America, Ford is lucky to break even selling a Focus... The difference Union vs non Union labor.
A MAlibu is just as good as a Accord or Camry, the Japanese cars do have a better rep.
Sales do not equal Quality. The fact of the matter is unions don't allow competitiveness internationally. The average American car worker costs (not take hom), $73 an hour compared to about $40 for Toyota.
Me, I buy American but I don't buy new cars too often. I currently have a 2000 Dodge Intrepid that I bought new and haven't had a single problem with it. Too bad they don't make them anymore
I don't think the UAW is the sole reason that the Big 3 are in trouble, but I do think that they're a sizable part of their problem. Gross mismanagement & a sh!tty product are the other two reasons.
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