Mitt Romney Says, "Let Detroit Go Bankrupt"...

Discussion in 'Wall St. News' started by gnome, Nov 19, 2008.

  1. Arguments against are about "lost jobs", but is that really true?

    The demand for cars will be about the same, regardless of whether Detroit is making them.

    So... if the Big 3 disappear, then Toyota, Honda, Nissan, and VW will be making and selling TWICE as many cars in the US as they do currently... and all of those displaced Big 3 employees will find jobs with the import makers.


    Perhaps Romney is right...
     
  2. eagle

    eagle

    Did he promise to help when running for R nomination?
     
  3. I don't know. But in a capitalistic economy, winners win and losers go by the wayside... You know, like in trading.
     
  4. nickdes

    nickdes

    ______________________________
    The premise may be right, but "premise's" are often proved out to be wrong, however a "Bankruptcy" will in my opinion turn this soured economy into one that we may not come out of for a decade.

    If foreclosures are bad now, why would these (potential) out of work auto workers, parts suppliers, small buisness owners, etc., have any incentive to pay their mortgage. (Thus the spiral down continues) Think about the anti-American slant we have on the business channel and be careful of what one wishes for--you may get it!
     
  5. eagle

    eagle

    Especially, the place where he chose to declare his candidacy. At the Ford Museum.


     
  6. S2007S

    S2007S

    The should go bankrupt and reorganize under chapter 11, the only way to do it.
     
  7. gaj

    gaj

    yes, romney promised to help detroit:

    http://www.boston.com/news/politics/politicalintelligence/2008/01/romney_gives_pr.html

    "Washington, he said, should give the auto companies flexibility on higher fuel efficiency standards for vehicle, as well as increase funding for research from $4 billion to $20 billion and provide new tax benefits for research and development."


    if i looked more, i could find better examples, that was a quick google. but his "saving" detroit seemed to be another flip during the primaries.
     
  8. S2007S

    S2007S

    Taken from USAtoday


    The question legislators, pundits, lobbyists and taxpayers are asking is: If we let these guys fail, how bad will it really be for the economy?

    Critics say Detroit created its own problems by relying too much on trucks and SUVs and cite a healthier foreign auto industry operating mostly in Southern states that isn't seeking a taxpayer bailout. But even Toyota said this weekend that it fears the impact on the parts suppliers it uses if the USA's domestic auto industry collapses.

    Moody's Economy.com chief economist Mark Zandi estimates that 2.6 million jobs — about 1.9% of the U.S. workforce — would be lost if GM, Chrysler and Ford were to go under.

    That includes more than 255,000 people directly tied to the three companies and an additional 2.3 million whose jobs are indirectly dependent — everything from people who work in the steel, glass, fabric, tire and electronic industries to the barista who makes $4 cappuccinos for the ad executive who'll be out of work when his auto industry business ceases to exist.

    Zandi argues the economy is too weak to absorb the fallout from an auto industry crisis.

    "We are in a very fragile state. This could be the thing to push us over," he says. "The ripple effect is like throwing a big boulder into the economic pond."

    The auto industry is woven into the roots of the U.S. economy, through its dealer networks, the advertising it buys in newspapers and local TV and radio stations, the health care it buys for its workers and their families and the retirees it supports who are scattered across states well beyond the Midwest, where the domestic auto industry is based.
     
  9. Brandonf

    Brandonf ET Sponsor

    The big three are going to bring universal healthcare to the United States. Write it down.
     
  10. Gnome

    Arguments against are about "lost jobs", but is that really true?

    The demand for cars will be about the same, regardless of whether Detroit is making them.

    So... if the Big 3 disappear, then Toyota, Honda, Nissan, and VW will be making and selling TWICE as many cars in the US as they do currently... and all of those displaced Big 3 employees will find jobs with the import makers.


    Perhaps Romney is right...


    ..............................................................................

    The demand for cars will go down in price.....and be more innovative.....

    Legacy costs, etc...have to be stripped away ....

    ........................................................................

    Look....Great Wall in China will come forth with a $18,000 battery powered suv c/o....ie suv cuv....

    But....the US will tack on big import taxes if the industry is not allowed to fail and rebuild.....

    ....................................................................

    Man...this is all about trying to protect higher prices.....

    This is not the way to go......Credit alone says this....

    ......................................................................

    And the real bottom line is that the business is a credit business....

    So the discussion should put "credit" as the most important issue......


    How many cars are going to be sold without credit....no matter who makes them ?
     
    #10     Nov 19, 2008