Auto suppliers ALSO need a bailout
An automaker bailout won't save suppliersSo, you're against an automaker bailout, but the loss of jobs is making you more open-minded. In particular, the idea that an automaker bankruptcy won't just result in automaker job loss, but auto supplier job loss has become alarming.
Well, according to a report Phil Lebeau made on CNBC a few minutes ago, an automaker bailout WON'T save auto suppliers. Regardless of any bailout for automakers, auto suppliers will need their own bailout according to Lebeau.
This story is apparently just breaking, so details are scarce. When asked about numbers, however, Lebeau guessed that auto suppliers would probably need as much as $15 to $20 billion from Congress - apart from any money Congress gives to the Big 3. Happy Monday!!!
Labels: bailout
posted by Dahcredyns at
9:51 AM
7 Comments:
This is, of course, the precedent that gets set when the bailouts begin. Namely, where does it all end? Which companies are discriminated against when determining who gets bailout money?
The same thing is happening with TARP.
I am in favor of this auto bailout, but in reality, the government should pull back and let nature take its course.
Oh, I am soo conflicted! :)
Hmm, auto suppliers? Cool, I'll still get my creative destruction!
If auto suppliers are the guys simply making cheap parts for gas guzzlers, and by themselves do not create new technology, then they should go under. At least Detroit can be held accountable for DESIGNING higher mpg vehicles. Auto suppliers are just dumb factories building what GM tells them to build.
Of course some of them probably provide engineering support to Detroit, and those won't die, since Detroit will need them more than ever as they design whole new fleets of higher MPG cars.
Jobs are jobs, but there are reasons that Detroit is a slow moving dinosaur. I figure auto suppliers are some of those reasons.
The suppliers, however, make up more jobs than automakers. Likewise, some of these suppliers might provide critical supplies needed to salvage US automakers.
This is one huge mess that is only going to get more messy, I'll bet.
And what if 2009 is worse than 2010?
This is ridiculous....
Why can't we just see the signals for what they are....
USE LESS, CONSUME LESS, WASTE LESS.
We need to use LESS cars. We need to waste less fuel, resources, etc....
I'm not religious but to me this is what we are being pushed to do and we're resisting all the way.
This society and the world is so blinded with the addiction of money that our response is exactly the same as a heroin addict coming off the high....panic, hysteria, confusion, distress.
I hope things get alot worse because they need to for us to gain any perspective of how stupidly we have been living our lives.
c'mon, noz, the key to financial problems is simple - just spend more money!!!
What the point, soon everybody will demand a bailout. Just how much money does the US Government really have left? Really they don't have any for a long time most of the money to finance the war on terrorism is financed by the Chinese banks anyway. It seems they are the only ones who are making a profit here. Even before this disaster the US government probably already owed the Peoples Republic Trillions of dollars anyway. Oh well, let's go ahead and print more money...
again, we are out to prove that we can spend and consumer our way out of any financial crisis!
Post a Comment
<< Home