Should the ONLY auto companies in the USA be FOREIGN?
GM. Ford, Chrysler ... To Loan or NOT ?
November 16, 2008
The moaning and groaning doesn't HELP! Unless ... that moaning and groaning is to discourage readers in the hope it'll drive the stock price down ( Do I hear the wimper of shorts about to lose their shirts ?? )
How quickly you forget what happened to the bears when the US gov loaned/loan guarenteed Lee Iacocca's Chrysler. Chrysler paid back every penny PLUS interest, PLUS wages, PLUS FICA, PLUS Fed taxes, PLUS state and local taxes, plus Social Security taxes ... etc, etc, etc !!!! AND every EMPLOYED worker pays the same taxes, every parts supplier pays the same taxes, every parts supplier employee ... DO THE MATH. Every loan IS a BLOWOUT windfall for the government. The no loan alternative ... all those employees on unemployment.
Should the ONLY auto companies in the USA be FOREIGN? Forever to siphon cash from this country in an un-ending trade decifit? un-ceasing trade imbalance?
The US gov is no doubt going to extend loans/loan guarantees to GM simply on the basis of the crushing ripple effect a GM failure would have on the economy, its suppliers, putting people (tax paying people) out of work, lost taxes: FICA, SSI, state taxes, etc ... You really think the USA isn't considering the permanent loss of USA industry,the trade deficit, AND the money it will GAIN, vs. the money it risks ???????????????
Moan and groan all you want. The Loan/Loan Guarantees will benefit the many ... not the few.
LINK:GM. Ford, Chrysler ... To Loan or NOT ?
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