Yesterday and today, I took a little while to listen to the automakers present their case for a "bailout". I thought that they were especially forthcoming and to the point........this time! You remember the boondoggle of arriving in Washington with hat in hand after having flown in on their private jets. I agree that was pretty dumb, they should have "jetpooled" I guess. The bigger deal though is the need to ask for money. I do not believe it especially given their propensity to largess. Let them go into Chapter 13 and reorganize.
What was more interesting was the incredibly stupid questions from the Senators and Congresspeople most of whom have not one minute of business experience. A few did, but not many. One of the interesting points was that Senator Dodd had met with a large number of car dealers ( I think 300) in Connecticut prior to the sessions this week. Smart. He found out what the car makers were telling them was true. NO ONE IS BUYING!!!! Even with outrageous incentives, no one is buying except that few people in the country can get a Dodge Charger. There is a waiting list. Why are they not buying. It is an amazing and mind boggling problem and reason for not buying. THEY DO NOT HAVE ANY MONEY AND CANNOT GET ANY!
Another case for the bailout might be that with gas prices coming down, people may soon begin to buy cars too. That is true in my view. One of the main keys to economic recovery is 'REASONABLE" gas prices. Next, stop all the government involvement except for interest rates. Rates are low, but banks aren't lending or at least they are not lending to normal people. Typical banking, if you do not need the money, the banks will lend it to you. They frown on people borrowing because they need to!!
What do you think.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment