GM to File for Bankruptcy in Next 5 Days

[Rockefella]

Originally Posted by john14

Aren't Americans concerned that the United States of America has an 11 trillion dollar debt and the government are giving $10 billions of working TAXPAYERS money to the companies which have failed so badly like AIG and GM?

I'm not because I think the best solution was to bailout these massive sectors of American business so things wouldn't get worse than they did. I think we're at 12% or 13% unemployment right now and we could have been looking at 16-20, imo.

[Kitdy]

Originally Posted by Rockefella

I think we're at 12% or 13% unemployment right now and we could have been looking at 16-20, imo.

Which would frankly result in an even worse GDP. I'm no economics expert, but this seems to make sense as workers buy things and this spending gets passed on down the line. I also learned in my macroeconomics due to the multiplier effect, these worker's purchases in the GDP actually increase GDP by more than just what they spend.

Also, if America is so much in debt, what is being even more in debt gonna do? Keynes popularized the idea of government spending to get out of a recession and my economics teacher at least figured this was right - I do too. So get a bit more in debt during a recession to save jobs and the economy, and when things are better, pay down the debt.

Don't want to make this a political thread, but the maybe the US should start thinking about cutting back on it's massive military spending - the F22 which was a plane that answered a question nobody really asked has been halted. What more can be paused or decreased?

EDIT: "Thanks" to hellcat to point out my stupidity on the last bit there.

[ThisBlood147]

Originally Posted by Kitdy

Don't want to make this a political thread, but the maybe the US should start thinking about cutting back on it's massive military spending - the F22 which was a plane that answered a question nobody really asked has been halted. What more can be paused or decreased?

Much of it. Unless Russia is determined to strike up another cold war, we're just developing weapons that are stark overkill (or outright ineffective) against the types of opponents most US forces are facing in the field right now. I mean, truly.......what good is a 42 million dollar warplane going to do when your enemy's weapon of choice is a homemade bomb planted on the side of the road?

Egh, I agree though................off topic.

[IBrake4Rainbows]

What you are forgetting is that the defence industry is, much like the automotive industry, one of the biggest employers in the US.....

GM has gone bankrupt for a number of reasons and I can only hope this "fresh start" as they see it results in a smaller, more profitable company that actually pays back to the US government some (if not all) of these loans.

[LeonOfTheDead]

Originally Posted by Dino Scuderia

The UAW, and unions in general, are favored by the Democratic party who now have the White House and Detroit was governed by the same party.

So it isn't about what makes sense as usual with politics.

It makes sense when this is making them spending all those money, which isn't very Democratic and they don't seem to be happy with it.

Originally Posted by IBrake4Rainbows

What you are forgetting is that the defence industry is, much like the automotive industry, one of the biggest employers in the US.....

GM has gone bankrupt for a number of reasons and I can only hope this "fresh start" as they see it results in a smaller, more profitable company that actually pays back to the US government some (if not all) of these loans.

Exactly this.

[cargirl1990]

Originally Posted by IBrake4Rainbows

What you are forgetting is that the defence industry is, much like the automotive industry, one of the biggest employers in the US.....

GM has gone bankrupt for a number of reasons and I can only hope this "fresh start" as they see it results in a smaller, more profitable company that actually pays back to the US government some (if not all) of these loans.

GM should of thought of that years ago when they were getting way over their head. their in so much debt becuase their Tahoes and Silverado's and Yukons and anything humongous was selling some odd few years ago. nobody wanted their compact cars or sedans. people always or seem to have a bad perception of american cars when some actually have the potential to beat other car companies with big sellers, say for example the Sentra or Civic. the Colbalt reachs 30 City and 35 highway. so what if its a domestic. even though they still have to learn ( especially from the japanese car companies )
and possibly other car companies, they still have the potential to beat some car companies at their own game. like in Europe,the Ford Focus out sold the Toyota Corolla. i know that japanese cars are built to last but sometimes people want something different for a change. Rainbows, i agree with that you putting a fresh start for GM isn't exactly a fresh start. but, GM shouldn' t have bought all those car companies back in the day when they were fresh. having Chevrolet, Buick, Cadillac, Opel, Pontiac, Saturn, Oldsmobile ( dead ),
Holden, Hummer, Saab, Vauxhall, Suzuki ( about 20% is owned by GM ), GMC. wouldn't one say that having 13 car companies is a little much or in fact too much. i find thats one of the main reason their in bankruptcy. having to bagde engineer almost every flippin car is probably the worst thing a car manufacturer can do, let alone having a kazillion car manufacturers.

[Ferrer]

Originally Posted by cargirl1990

like in Europe,the Ford Focus out sold the Toyota Corolla.

That's probably more to do with japanese cars not selling in Europe rather than the Focus being a hot seller.

[fpv_gtho]

Originally Posted by IBrake4Rainbows

GM has gone bankrupt for a number of reasons and I can only hope this "fresh start" as they see it results in a smaller, more profitable company that actually pays back to the US government some (if not all) of these loans.

I thought the government getting the majority of the new stock wouldve been repayment on the loans.

[LeonOfTheDead]

Originally Posted by Ferrer

That's probably more to do with japanese cars not selling in Europe rather than the Focus being a hot seller.

or the fact theat the Focus is an European car regardless of Ford being an American brand.

Originally Posted by fpv_gtho

I thought the government getting the majority of the new stock wouldve been repayment on the loans.

only once those stocks would be worth something.

[Ferrer]

Originally Posted by LeonOfTheDead

or the fact theat the Focus is an European car regardless of Ford being an American brand.

That helps too, because Chryslers and Dodges don't sell either, and I don't think Chevrolet does brilliantly too.

[Rockefella]

To drift off the subject a bit, I really like the direction Ford US is going. I think the new Fusion and Taurus look and drive phenomenally compared to how they used to be.

[cargirl1990]

Originally Posted by Rockefella

To drift off the subject a bit, I really like the direction Ford US is going. I think the new Fusion and Taurus look and drive phenomenally compared to how they used to be.

that's becuase their finally learning off of their European twin. ( thank goodness ).

[LeonOfTheDead]

Originally Posted by cargirl1990

that's becuase their finally learning off of their European twin. ( thank goodness ).

I'm not sure if that has something to do with the Taurus and Fusion being good cars. We don't get any sort of Ford as large as the Taurus since the Scoprio during the nineties, while the relationship between the Fusion and the Mondeo isn't that relevant (just minor components). i think they just started building and designing good cars.
I don't know if they copied from Ford Europe or from Toyota, but it seems to work.

[Ferrer]

Originally Posted by LeonOfTheDead

I'm not sure if that has something to do with the Taurus and Fusion being good cars. We don't get any sort of Ford as large as the Taurus since the Scoprio during the nineties, while the relationship between the Fusion and the Mondeo isn't that relevant (just minor components). i think they just started building and designing good cars.
I don't know if they copied from Ford Europe or from Toyota, but it seems to work.

IIRC, the Fusion is based in Mazda hardware, not Ford EU.

[LeonOfTheDead]

Originally Posted by Ferrer

IIRC, the Fusion is based in Mazda hardware, not Ford EU.

correct indeed.