Re: "Big Three" bailout ....
 

At this point just like the banking industry it's not about deserving or cutting off your nose to spite your face. After last week's unemployment figures it's about Obama sticking his finger in the dyke to stem to bloodflow ( a mixed metaphor) Also the ramifications that would be felt worldwide if Ford and GM were to fail, as these companies have worldwide subsiduries, them closing too would just add to the economic crisis.
Of course this is just my thoughts on what's going on

Re: "Big Three" bailout ....
 

Absolutely. It's not about saving the deserving - it's about minimising damage.

Re: "Big Three" bailout ....
 

I'd personally like to know how to buy Nickel and Chromium. They are 2 prime ingredients in stainless steel mfg (the industry I'm in now) and the price/lb of these have gone done considerably in the last 6 months. Given how much of a novice I am at stocks and whatnot, I'm still trying to figure out how to buy into these two.

Re: "Big Three" bailout ....
 

You would if you actually started losing money

Re: "Big Three" bailout ....
 

At what cost though? Where does the line get drawn with regards to what industry/company can afford to fail? That is my biggest concern. The line has to be drawn somewhere. I have compassion for thsoe that could lose jobs, but I personally feel a business needs to rise or fall on it's on merits. If a company makes bad decisions, they have to live, or die, by the consequences.

Re: "Big Three" bailout ....
 

I think they are mostly foreign markets. Mining companies in SA and China. Metal markets have been hit hard due to the economic downturn and drop in price of copper and aluminum amongst others.
I just got lucky with AA. The stock was $40 a few months ago and I figured it was worth a punt when it dropped to $7.50 - $7.60 range.
Stock trading is basically gambling, make no doubts about it

Re: "Big Three" bailout ....
 

Oh I know the ramifications of the possibility of them closing. I'm just saying that considering the present crisis, and the need for more fuel efficient vehicles, the idea of stuffing tax payers money into a company that is going to forge ahead with truck and SUV sales all over again, with no redress, instead of trying to produce MUCH more fuel efficient vehicles and reading the current market trend, is pretty much like throwing good money after bad.

Maybe we need a total restructuring of the motor industry, and maybe the head of GM should have his ass kicked out of his job for not spotting the problems 18 or so months ago, when he was spouting off to the motoring press that "GM had been number 1 for 30 years and that he didn't see that changing anytme soon".
Maybe the unions have priced themselves out of a job too, much like they managed to do in the UK a few years ago?
Short sighted complacency in any business, is a good way to ruin it.
Of course, that's just my thoughts, too. :)

Re: "Big Three" bailout ....
 

Agreed, which is why the govt. will meet them in the middle, only give them $X billion instead of $XX billion and probably boot that CEO as conditions of the money

Re: "Big Three" bailout ....
 

Just like any small business that wouldn't get a bailout from anyone for its complacent approach and bad management, you mean?
Honestly, I couldn't agree more. Compassion for the workers where it's due, but how much do they earn in comparison to other factory workers because of their union ways? No compassion for the management at all, they haven't forecasted the long term markets like they should have done, and they haven't tried hard enough.

Re: "Big Three" bailout ....
 

Whatever happens, the government needs to make sure they all aren't back in another 6 months asking for more money.
As a side not, I wonder how much the CEO will get as a pay off for being booted.. out of the bail out cash?

Re: "Big Three" bailout ....
 

Here's a penny stock for nickel mining company in Canada. 3 cents, buy a few thousand shares. It was 20 cents within the last year but also as low as 1c. You could make a killing............ or it could go to SFA :lol:

http://finance.yahoo.com/q/bc?s=NKL.V&t=2y

Re: "Big Three" bailout ....
 

Nah - it'd be my decision in the end what to buy - can't blame someone else.

I have no clue where to draw the line - I'm not an economist.

I generally agree - a business should rise or fall on its merits.

But it's not just about the businesses themselves, or the big 3 workers that would lose jobs - the ramifications and ripple effect would be huge.

I don't think the govt is saving them to save the businesses, or even just the workers. I think they're trying to save them because of the impact their failure would have on the entire country. And I do believe it would.

World's largest casino :)

Re: "Big Three" bailout ....
 

A sign of the times to come?

Workers at Republic Windows continue sit-in after company closes
Bank, citing sharp downturn in business, canceled company's line of credit

http://www.chicagotribune.com/...dec07,0,667083.story

The same thing happened when the airline Midway went under in August 2001. The management attempted to remove themselves of their responsibilities by claiming sudden bankruptcy and stuffing all their staff with a short closing notice.

I suspect we'll be seeing more of this over next few months :mad:

Re: "Big Three" bailout ....
 

ummm...they treat them as well or better for the majority...where they are able to save money is not having old pensions grandfathered in...They also tend to manufacture parts in the US, which the big 3 don't tend to do, they just assemble...

Re: "Big Three" bailout ....
 

Majority of what? We're comparing the US vs. foreign car companies - not McDonalds.

For example:

Currently, the average U.A.W. member costs G.M. about $74 an hour in a combination of wages, health care and the value of future benefits, like pensions. Toyota, by comparison, spends the equivalent of about $45 an hour for each of its employees in the United States.

Base wages between the Big Three and the foreign companies are roughly comparable, with a veteran U.A.W. member earning $28 an hour at the Big Three compared to about $25 an hour at Toyota’s plant in Georgetown, Ky. (Toyota pays less at its other American factories.)

But the gap in labor costs becomes larger when health care, particularly for thousands of retirees and surviving spouses, and job security provisions are considered.

Mr. Gettelfinger said Wednesday that the union would suspend the much-criticized “jobs bank” program, which allows laid-off workers to continue drawing nearly full wages.

http://dealbook.blogs.nytimes.com/20...lp-automakers/

Bet that's a bunch bigger gap than Sams Club and Costco.

Double standard, it seems to me... if ya want to support the companies who are best to the workers - better buy American cars.