Company Financials

[BlueSRT0483]

If I recall correctly, the big three already has a loan approved of $25 Billion and they are asking for more money ($34 Billion) The big three play a large role in other jobs as well, i.e., in-direct & direct suppliers, dealerships, etc. If the big 3 fail, you could also see a lot more businesses fail or lose money. When a business sees themselves losing money, normally they cut jobs to reduce cost. If we look at it from a average joe person, if we are an employed worker who is in a direct relationship with the big 3, we could see our jobs in jeapordy. People like a salesperson at a dealership, an associate at a parts supplier, etc. Congress just wants to see their business plan before they approve the $$$ to make sure the big 3 are not just putting themselves into more hurt than they need. With unemployment at higher levels than what it was back in 2001 during our last recession, I am sure the last thing the government wishes to see is more jobs being lost increasing the unemployment levels. In November of 2008, we lost over 500,000 jobs, and December isn't going to be looking much better. Economists believe we won't see a turn around until the 2nd quarter of 2009. Projected sales of this holiday season are not going to be as high as they have been in the recent years since people are being conservative with their $$$money, or they are just too broke to buy anything. But to stay on topic, the government is pushing to see that the big 3 push to create more fuel-efficient vehicles. I don't remember what the requirement or idea was, but there was something to be enforced by 2015 of a really high-mileage vehicle. I want to say nearly 200 miles per gallon, but that seems so far-fetched right now. Bail out or not, we will see the big 3 cutting work force.. I think the bail out will reduce the amount of employees reduced since they will be able to afford their day-to-day expenses.
Another solution for the big 3 would be to reduce the burden costs/wages. For some, it may be better to keep your jobs at a reduced pay level versus no job at all.
However, I find it funny that CEOs didn't think they would be criticized for taking private jets to Washington, when they are looking for a bailout. Its exactly what Congress is trying to prove, that the big 3 have a lot of wasteful spending.
SNL did a skit on the big 3 on how they drove their hybrids to Washington, and made fun of how they all broke down on teh way. Dead batteries, etc.

[slow90gsx]

I think that the unions are overpaid but labor is only 10% of their problems...I dont think that they should get bailed out either but i think the after effects would be fucking crazy if they didnt give them any money.its not just the united states that would be affected and it would trickle down to lets parts stores going down.Its not just gm ford and chrysler going down its the stores, all the mechanics, book keepers salesman/women, manufactures of factory and aftermarket parts and so on and so on you have to look at the WHOLE picture not just the dumbasses that got themselves in the situation.I do agree that it would be a disaster if these companys do fail.There is no right answer to this.