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Good post. Reminds me of the *only* intelligent thing I've heard out of Barack Obama, regarding Fanny Mae, namely, if they need taxpayer bailout, they should be controlled by the government and out of the for-profit biz; if they want to be in the profit business, they need to go to the capital markets to get their money.

US automakers have been busy burning the family furniture for firewood for the last decade or so (with help from the unions). They should be allowed to fail -- newer companies with better business models will take their places.

Yes, there will be economic dislocations from the failure of large corporations, but I doubt that will be as bad as they portray in their current extortion attempts.

What will actually happen is that the automakers will break into many smaller pieces to be sold off at bargain-basement prices to other companies that can run them profitably (sans unions, which are a major contributor to the downfall of the automakers). Stockholders (which include funds that are heavily invested in large oil companies) will lose their money, and the BODs of these companies will lose their gravy-trains, and life will go on.

The longer these bloated money-sinks are allowed to run, the worse the inevitable collapse will hurt.
--
TX CHL Instructor, www.chl-tx.com

As a GM employee, I think you need to present the accurate facts!

Unlike what you've portrayed, GM senior leaders are not sitting on their hands doing nothing, waiting for someone else to solve the issues we face.

GM leaders have taken aggressive steps to position the company for us to not only to survive this tough period, but to come out of it as a leaner, stronger and more successful company.

Back in July, Rick Wagoner and his senior leadership team announced several steps it was taking to adapt to the rapidly changing market conditions.

Among those steps included the suspension of the dividend payment. In regard to the so called lavish executive pay, the company also announced there would be no annual discretionary cash bonuses for company executives in 2008. Also, GM executives will have a significant reduction in their cash compensation opportunity for 2008. For the company's top leaders, this move represents a reduction in their cash compensation of 75 - 84 percent.

Regarding the potential loans - let me make it very clear - GM is not looking for a bailout or a handout! The program under discussion - part of major energy legislation signed in December 2007, is intended to lower borrowing costs for carmakers and suppliers that are investing in energy-saving technologies. This would be done through direct-loans, which would have to be repaid in full, with interest.

The loans would allow eligible companies the ability to borrow money at a cost lower than the prevailing interest rate.

The auto industry, including automakers and suppliers, is critically important to the U.S. economy. A quarter of a million people are directly employed by automakers. Hundreds of thousands more work for suppliers. In fact, 1 in 12 U.S. jobs is related to the auto industry.

So before you blindly bash these potential loans, please consider the federal loan guarantee progrram can help achieve several important national goals and is an appropriate role for the goverment to play. It can help preserve U.S. jobs, strengthen U.S. global competitiveness and help speed to market more fuel efficient vehicles.

Sincerely,

Dan Flores
General Motors Corp.

There are 10 auto plants in the south that are doing well without asking for government loans to bail them out of financial problems resulting from their managements lack of foresight. The country's survival does not depend on saving GM or Chrysler. If they can't survive in the free market on their own, let them fail. The government is involved with too many bail outs now. It is taxpayer money that is at risk and if I want to risk my money, I certainly don't want the government making thoes decisions.

One point of correction -- all of those southern plants were heavily subsidized by state and local goverments. Do a news search for the clips at the time each was built -- the dollar figures are staggering. There may be an example somewhere of the free market at work, but alas, this is not it.

THER ARE NO AUTOMOBILE PLANTS IN DETROIT AND NEVER HAVE BEEN.BIG DEAL EH ?

I think it's altogether fitting and proper that the government help the U.S. automakers. Why? Look at how their Asian counterparts (JAPAN MITI et al) have done just about everything to help their auto companies compete on the world stage. The American manufacturers are a tremendous "block" in this economy of ours; to turn our backs on them would be devastating!!

Well wine all you want:
If you plant a crop at home this spring you eat this winter.
If you buy a import product look for your pay check coming from over seas.
You can not help some one else if you live in a unstable house your self.
The people in the USA must Unite and be one Buy American products or lets not hear you wineing when you lose your job you ask for it you got it live with it.

Well lets see instead of giving wall street 700,000,000,000 lets just say that the government give every American citizen over 18 450,000 now we have to pay taxes on that money so give the government 125,000 right off the top.That would leave every husband & wife with 650,000 that would ,,,I would think really make a difference in the ecomony.