The GM Bailout

[il Padrino Ute]

Few things:

When the government implies they'll back 2 companies, ie Freddie and Fannie, it means when the shit hits the fan and billions are on the line, you must bailout

When China calls your government and says if you don't pass the bailout we'll dump your securities on the open market, you must bailout

When millions of peoples pension plans securities have lost their insurance because real estate prices have dropped so drastically and certain securities are not able to be marketed or auctioned, you must bailout

Allowing the market go to shit and letting 'capitalism' work itself out is as misguided as somebody thinking Marxism is viable.

It sounds like the government should stay the hell out of the way.

[BlueHair]

It sounds like the government should stay the hell out of the way.

I agree. They are putting bandaids on a severed artery. The economy is going to collapse. It's not if, but when. When we rebuild, I hope we start with a legitimate currency, not this fiat bullshit. I want real money backed by real assets.

[Mormon Red Death]

Interestingly enough my dad worked for GM for 30 years. He ran their largest dock in the US, off the coast of California. A guy he worked with came to him one day and said that he had discovered an alchol based fuel to run cars off of. He said that you could fill your car and drive 250 miles for under 3 dollars. My dad new the VP at GM and got him in touch with him. GM loved the idea but told him that it was not them that needed to approve it, that he needed to take it to the fuel manufacturers. He took his idea to Exxon, BP, and one other one they all offered him 8 figure deals for his idea. But they also all said they would never make it or use it they just didnt want the idea out there because it would cost them way to much money. The guy did not sell it and instead tried to privately fund the cost of manufacturing. A week after his meeting with these big oil companies he was found murdered in his house and his house was burned to the ground.

Most speculate that it was the oil companies that had it done becaue of the amount of money they were on the verge of losing.

while that is a good fable it highlights something. For GM or any car company to change its platforms to make new cars would cost billions of dollars. TAke for instance the the air car www.aircar.com Seems like this technology would be great for a car companly like gm, ford, toyota, honda etc.. problem is the theri infastructure would take to much to change

Btw... E85 is available for almost all gm and ford models and that is an alchol based gasoline

[venkman]

GM has made it's share of mistakes, but it would be wrong to give them all the blame. Government policies have helped get them here and they've been fighting foreign competition with one hand tied behind their backs. Changes have been made and more are certainly needed.

No bailout = Chapter 11 = sales collapse = Chapter 7 = no more GM. Do we really want that?

[il Padrino Ute]

I agree. They are putting bandaids on a severed artery. The economy is going to collapse. It's not if, but when. When we rebuild, I hope we start with a legitimate currency, not this fiat bullshit. I want real money backed by real assets.

Go back to the gold standard?

I'd be for that.

[ERCougar]

Go back to the gold standard?

I'd be for that.

pelagius, please weigh in on this. Please.

I'm an undergrad econ major and I'm licking my chops on this one.

[Mormon Red Death]

pelagius, please weigh in on this. Please.

I'm an undergrad econ major and I'm licking my chops on this one.

I'd be for it as well. The departure from the gold standard was a major cause of the great depression.

"follow the yellow brick road"

[New Mexican Disaster]

I'd be for it as well. The departure from the gold standard was a major cause of the great depression.

"follow the yellow brick road"

Where you gonna get all that gold?