Comment Re:What about bailing out people? (Score 2, Insightful) 494
The bail outs have a very specific purpose that ideally will be held to.
I think they should be handled better than they are but the theory behind them makes sense.
Let's assume all 3 major autos go out of business. With out the manufacturer to perform warranty repairs and someone to be held accountable for defects that are life threatening people will not buy those cars.
This causes layoffs and closings of the dealerships, potentially 10's of thousands or hundreds of thousands of people.
On top of the dealerships going under you'll have the parts suppliers losing both of their major clients, the auto makers and the dealerships that do repairs for those makers, this causes them to lay off people and close down, another potential hundreds of thousands of people for just the warehouse/store work. Without the store fronts and warehouses selling merchandise the manufacturing aspect of these companies will also be shut down, another potential 10's of thousands or hundreds of thousands of people laid off.
At this point you get the picture of how it could spiral downward from 3 companies going out of business.
They are major companies that are the backbone of a gigantic section of the US economy.
They need to fix their business model, last I heard they are losing several thousand dollars on each car sold and expecting to stay in business which is why they need another bailout, that and people not wanting to buy gas guzzling monsters when gas is $4/gallon.
I think they should be handled better than they are but the theory behind them makes sense.
Let's assume all 3 major autos go out of business. With out the manufacturer to perform warranty repairs and someone to be held accountable for defects that are life threatening people will not buy those cars.
This causes layoffs and closings of the dealerships, potentially 10's of thousands or hundreds of thousands of people.
On top of the dealerships going under you'll have the parts suppliers losing both of their major clients, the auto makers and the dealerships that do repairs for those makers, this causes them to lay off people and close down, another potential hundreds of thousands of people for just the warehouse/store work. Without the store fronts and warehouses selling merchandise the manufacturing aspect of these companies will also be shut down, another potential 10's of thousands or hundreds of thousands of people laid off.
At this point you get the picture of how it could spiral downward from 3 companies going out of business.
They are major companies that are the backbone of a gigantic section of the US economy.
They need to fix their business model, last I heard they are losing several thousand dollars on each car sold and expecting to stay in business which is why they need another bailout, that and people not wanting to buy gas guzzling monsters when gas is $4/gallon.
