The big three auto companies are not able to keep afloat like an old VW Beatle. Since the Banks are getting a bailout, why not the Automakers. After all they misbehaved just like the Banks. They over extended themselves, gave the consumers products that they did not want or need. Why reward the Banks and not the automakers.
Banks: Gave loans to people that never should qualify and with dangerous adjustable rates.
Automakers: Made cars that people do not want and that are not fuel efficient (by the way, the government gave consumers and businesses a large tax credit for all vehicles purchased over 6,000 pounds, which are most SUV’s).
Banks: Expanded with products and that have so many layers and outside of traditional banking (SWAP agreements; servicing rights; mortgage insurance that benefited the lenders only)
Automakers: Failure to plan and adopt business plans for non gasoline cars and failing to develop non gas engines.
Banks & Automakers: Pay high upper and middle management salaries, bonuses, stock options, golden parachutes.
So can we let GM go under and have another 3 million people out of work or do we give billions to keep them afloat?
Obviously, the economy cannot tolerate GM or the other 2 major automakers to go under. However, there should be ground rules for a bailout and these rules should be required of the recipients of the Bank bailout too.
All top executives and Board of Directors should have a salary and compensation limit of $250, 000. (That way they will qualify for the Obama tax cut).
Cut executive and middle management by 20%
All workers must take a temporary 10 to 20% reduction in salary
The automakers must have a definite plan to retool their plants and design for non gas cars within 3 years. For Banks they must agree to refinance all primary resident mortgages for a fixed rate of 4%. The banks must also agree that 10% of the money they receive will be used for first time home buyers to receive a mortgage at 3% to stimulate the housing market.
If the automakers and Banks want our money they must change. The greed must end and sacrifices must be made from the assembly floor to the executive floor.
Last, let good old American ingenuity work; the Federal government should offer a reward for the Big 3 or any individual or company that can bring a true clean not gas engine to marker. That car may run on water, sewer waste, seawater or something else. Maybe the Feds can offer a $10 million dollar incentive/reward. That will get the competition going!!!
Banks: Gave loans to people that never should qualify and with dangerous adjustable rates.
Automakers: Made cars that people do not want and that are not fuel efficient (by the way, the government gave consumers and businesses a large tax credit for all vehicles purchased over 6,000 pounds, which are most SUV’s).
Banks: Expanded with products and that have so many layers and outside of traditional banking (SWAP agreements; servicing rights; mortgage insurance that benefited the lenders only)
Automakers: Failure to plan and adopt business plans for non gasoline cars and failing to develop non gas engines.
Banks & Automakers: Pay high upper and middle management salaries, bonuses, stock options, golden parachutes.
So can we let GM go under and have another 3 million people out of work or do we give billions to keep them afloat?
Obviously, the economy cannot tolerate GM or the other 2 major automakers to go under. However, there should be ground rules for a bailout and these rules should be required of the recipients of the Bank bailout too.
All top executives and Board of Directors should have a salary and compensation limit of $250, 000. (That way they will qualify for the Obama tax cut).
Cut executive and middle management by 20%
All workers must take a temporary 10 to 20% reduction in salary
The automakers must have a definite plan to retool their plants and design for non gas cars within 3 years. For Banks they must agree to refinance all primary resident mortgages for a fixed rate of 4%. The banks must also agree that 10% of the money they receive will be used for first time home buyers to receive a mortgage at 3% to stimulate the housing market.
If the automakers and Banks want our money they must change. The greed must end and sacrifices must be made from the assembly floor to the executive floor.
Last, let good old American ingenuity work; the Federal government should offer a reward for the Big 3 or any individual or company that can bring a true clean not gas engine to marker. That car may run on water, sewer waste, seawater or something else. Maybe the Feds can offer a $10 million dollar incentive/reward. That will get the competition going!!!
