Posted by: rotenochsen | December 11, 2008

IT FAILED, BUT BIG 3 WILL RESUFACE AGAIN SOON!

Thursday, December 11, 2008

NOT ABOUT JOBS, IT IS ABOUT REWARDING POOR MANAGEMENT!






Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” —Ronald Reagan

The Media and the Democrat and RINO cabal that is trying to award poor management practices with you hard earned tax dollars is telling you it is all about saving jobs. But I do not believe it!
That’s right America: It’s your problem! Just like the banks and insurance companies and everybody else we’ve been bailing out because they’re “too big to let fail.”
After the roughly $2 trillion already committed to stemming the credit crisis, an additional $25 billion in public money for the automakers (on top of the $25 billion loan program created by Congress in September to help them develop more fuel-efficient vehicles) seems almost trivial. THE MEDIA SEEMS TO HAVE FORGOTTEN THIS!

Not only is it morally wrong to reward unprofitable business practices, it’s fundamentally wrong and anti-capitalistic.
It wasn’t about the jobs when the automakers sent so much of their manufacturing overseas; that was about their bottom line.
It wasn’t about the jobs when they built, and then abandoned the project, the EV-1 electric car program. It would not sell anyways because the cost to the consumer is estimated as prohibitive
It wasn’t about the jobs when they made decades of vehicles consumers shunned in favor of better products from foreign manufacturers.
It’s only about the jobs when it costs them. For over 50 years, the Big Three, with the aid of the UAW, have fought anything that was thought good for the car buyer.

On 11/5/08 the UAW came to Washington to ask for a government Bridge loan to help their Health Trust. The Detroit News reported that the Big 3,and UAW asked for health trust help.
The Big Three and the United Auto Workers were pressing the case for low-cost government loans to help automakers make required payments to trust funds to oversee hourly retiree health care starting in 2010.
The need for congressional support for the health care funding isn’t their most immediate concern, but it’s looming. The automakers are asking Congress for as much as $25 billion in “bridge financing” to help with their liquidity crisis, but that money also could be used for funding the health care trust.
This request was separate from the $25 billion already approved for low-cost loans for retooling plants to build more fuel-efficient cars, when it returns to work this month.
The topic of the health-care payments was addressed during an hour-long meeting of House Democrats convened by House Speaker Nancy Pelosi on Monday.
In total, Detroit’s Big Three automakers would have made nearly $60 billion in payments to bankroll three trust funds to pay for hourly retiree health care. All union members who apparently supported Obama in the past election.

The argument that has driven this slow moving economic “iceberg” to the point where the House has passed a “bail out” bill that President Bush has said he would sign is
the warning by legislative director Alan Reuther, who said the financial ability of automakers to make the payments into the trust fund in 2010 is a concern, and one of the issues that should be addressed by Congress.
“If the federal government does not provide assistance to the Detroit-based auto companies to enable them to survive the economic downturn, hundreds of thousands of jobs at the auto companies and suppliers will be threatened,” UAW President Ron Gettelfinger wrote in an Oct. 27 letter to lawmakers. “The health care and pension benefits for the retirees and their families will be placed in jeopardy.” He noted that the government could be forced to assume a large increase in health care and retiree costs if the Big Three collapsed.
Detroit’s Big Three automakers spent $8.9 billion on health care in 2007, compared with a record $11 billion in 2005.
Automakers have said they think Congress should consider all available options to assist automakers.
Wouldn’t it be nice if the Congress considered the taxpaying public a little more before they bail out an industry that is destined to to be bankrupt without “chucking” their bloated Union benefit structure, and start making cars that the consumer wants, not cars that the “Eco-freaks” demand!

As an interesting side note. The President elect spent less than two minutes in today’s press conference denying he had any contact with indicted and arrested Governor Blagojevich regarding the filling of his Senate seat. He spent most of his time introducing ex-Senator Tom Daschel and Gene Lambert as his team to craft a National Health Plan. Most notable was when asked how can we afford National Health
Insurance? His simplistic non-response was: “how can we afford not to do it!” Not unlike the non-detailed plans for his CHANGE during the campaign!

Our only hope is that true Republican that believe in fiscal responsibility will hold the line. The latest news from the AP is that Republicans are challenging lame-duck President George W. Bush on the proposal, arguing that any support for the domestic auto industry should carry significant concessions from autoworkers and creditors and reject tougher environmental rules imposed by House Democrats.

There were 170 Congressmen and women who voted against the 14 billion dollar loan Wednesday,so I hope the Republicans,in the Senate, do not give into the hysteria of severe job loss that is being used to sell this loan. It will not save jobs, but it will delay their demise until Obama can take over the Oval Office and begin the Socialization of the Republic that once was the USA.

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