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Hello my friends and welcome to the TGIF post. A quick note before I get on with today’s topic. It would appear that the Minnesota Senate Race between Republican Norm Coleman and Numb Nuts Deluxe Al Franken may not be decided by the end of the day today. It seems that December 16th 2008 is the magic date, now for today’s topic.

The big three automakers CEO’s were in DC today with their hands out looking for the taxpayer to bail them out. Instead of flying in their corporate jets they all caravanned into DC in the hybrid cars that their companies manufacture, and looking a little more humble than they did the last time. Along with their new found sense of self they also raised the amount they are seeking another nine billion dollars collectively, from twenty five billion dollars, to thirty four billion dollars.

To say the least it is important for something to be done to help get these companies back on their feet and producing automobiles. Cars like the Chevy Malibu and the Ford Focus compete very well against foreign auto makers who build here. They get better gas mileage and are considered safer to drive. Even some of the full size SUV’s and pickup trucks get mileage comparable or better than some of the top import sedans such as the Toyota Camry.

The problem that the big three has is not with manufacturing quality auto’s that perform well, their problem is with labor and vendor costs. These problems exist because of the way they have been doing business for decades. Paying out crazy money for materials for the autos they build, as well as for every day things needed to run the companies. It reminds me of the five hundred dollar hammers and thousand dollar toilet seats the military was getting, that our senate and congress were paying for just a few years ago.

It doesn’t help them any when the UAW (United Auto Workers) has a virtual stranglehold on them and squeezes them till it hurts. UAW President Ron Gettlefinger is all for the bailout of course, because that means that the union won’t face real renegotiations with the Big Three like they would under a chapter 11 bankruptcy. Ron figures why not let the taxpayer foot the bill.

To be honest the Big Three and the UAW have agreed to look at making some concessions in negotiations for new labor contracts, but I don’t think the unions will just give up everything without a fight. However they both agreed that they could do away with the job bank. The job bank is a place where laid off UAW workers still draw ninety percent of their wages while not working. I still can’t believe that any corporation would agree to an arrangement like that.

Now I personally believe that we should not bail out the Big Three automakers. I believe that they should be required to file for chapter 11 bankruptcy, restructure, and force the unions into negotiations that give them what they need to keep the union workers employed. As you all know I wasn’t for bailing any companies out in the financial markets either. In my opinion in business the strong survive and the weak get gobbled up. That’s the way it should be in a free market economy, instead of the Government subsidizing them and becomes the majority stockholder and partner.

Well my friends that is all I have for you today. I hope you all have an awesome weekend, TGIF, CIAO4NOW!!!!!

P.S. One more thought. If we are upset because the Big Three executives used private jets their first time going to DC because they are broke, then why are we the taxpayer still paying for House Speaker Nancy Pelosi’s plane when we the taxpayer’s are going broke?


I believe that it is bad business for tax payers if we bail out the auto industry. If chapter 11 bankruptcy is a viable option, and they can restructure their businesses to be more efficient and renegotiate their labor contracts down to something manageable and satisfactory, then why should the taxpayer have to bail them out? It is bad enough that we had to bail out the mortgage, banking, and credit card companies because politicians helped screw them up. From what I can see the auto business did it to themselves. As for the others they should have just said no to the politicians and there would have been no problems or bail outs at all.

December 6, 2008 at 3:55 PM  

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