04 December, 2008

Big 3 Bailout. Business as Usual?

I haven't been following the big 3 bailout news very intently but I don't really have to. I'm pretty sure that whoever lines up and asks for billions from the gov is going to get it. Sure there will be debates and scrutiny but everyone's getting paid.
As far as the Big 3 bailout goes (and every other bailout for that matter) it just seems like business as usual but more cash can be handed out now because the bank is being broke wide open.

I grew up in Flint, MI. When I was in high school Flint had 145,000 people and 7 GM plants in Genesee County. We could tell that Grand Blanc was the wealthy part of town because it had the Cadillac plant. Everyone worked for GM or an offshoot of the auto industry. My grandfather moved his family to MI during WWII to work in Flint for Fischer Body, my father worked there at night while going to college to be a GM engineer.

Everybody drove GM cars. Our idea of a foreign car was a Chrysler. It wasn't until I went away to college (MSU, not far away) that I saw many more foreign cars. College girls driving gold Lexus SUV's and many Hondas and Toyotas. many of these kids were from Detroit suburbs. Why weren't they driving GM? Ford? even Chrysler? Did they know something I didn't? Were their minds not owned by the Big 3? This really was confusing, even at 18 yrs old.

That got me to thinking about company towns and the grip they have on the people who live there. A combination of nationalism, pride and wanting to buy what we made kept us buying American cars. My family bought a new or like new car every 4 years. As soon as one was nearly paid off another one was bought.

But it's also these same people who are being put out of work. How are they going to buy GM cars now? Or any cars for that matter.

And now GM has a plan to make themselves better. One of the measures they will take if they get the billions of dollars is to lay off 20,000 workers. That's part of their solution? They've being consistently laying off workers for 25 years and still driving their company into the ground. If anyone looks deeper they will find that GM is not even worth $10 Billion.

But it doesn't matter really. business will continue as planned and there will be no money in the coffers for the people when the real depression hits. Oh it's coming. Why wouldn't it? People are just taking money and that's all that is happening. We are witnessing the largest movement of public money to Private hands that I've ever known. Isn't this what board members do right before their companies go under?

1 comment:

Anonymous said...

I'd like to Post a Comment The recession really isn't that bad if you know where to look. The bailout money is spilling over to us believe it or not. I've done research and found that there is more money than what you think...

Bailout Spillover