Our financial system is crumbling this week.

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Hungary Jack
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Re: Our financial system is crumbling this week.

Post by Hungary Jack »

Looks like sanity prevails as the Treasury has turned down GM's request to provide financial assistance up to $10 B to support a merger with Chrysler.

Sorry, Dontrelle--er--GM

GM could still get a big chunk of the $25B that the Dept of Energy is making available to the Bumbling 3, but I would assume this would be to enable the transition to more energy-efficient cars. Given the Chrysler's portfolio is mostly Jeep SUVs and Dodge trucks, I think GM would have a hard time stating its case that a merger would enable GM's development of more fuel efficient cars. Hopefully the Volt turns out to be a winner.

This may sound incredibly callous, but if Chrysler and GM have to go the way of the doodoo bird, so be it.

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KyCardinalFan
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Re: Our financial system is crumbling this week.

Post by KyCardinalFan »

I just read in yesterday's paper that my bank has been purchased by another bank. I'm interested in seeing if or how this affects our mortgage, which is held by a division of this bank. But mostly I am looking at the annoyance of dealing with another bank name change which we've done a couple of times over the last 10 years.

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Popeye_Card
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Re: Our financial system is crumbling this week.

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Hungary Jack wrote:Looks like sanity prevails as the Treasury has turned down GM's request to provide financial assistance up to $10 B to support a merger with Chrysler.

Sorry, Dontrelle--er--GM

GM could still get a big chunk of the $25B that the Dept of Energy is making available to the Bumbling 3, but I would assume this would be to enable the transition to more energy-efficient cars. Given the Chrysler's portfolio is mostly Jeep SUVs and Dodge trucks, I think GM would have a hard time stating its case that a merger would enable GM's development of more fuel efficient cars. Hopefully the Volt turns out to be a winner.

This may sound incredibly callous, but if Chrysler and GM have to go the way of the doodoo bird, so be it.
A couple things to keep in mind.

1.) I wouldn't write-off Jeep as a complete gas-guzzling brand. I'm pretty impressed with the Patriot, which is a nice little Subaru-esque vehcile that's more like a station wagon than SUV. It gets pretty good fuel economy, is spacious, has 4x4, and is much better looking than a Subaru Forrester. Their Compass gets good fuel economy as well. Jeep is probably the only positive thing Chrysler has going for it.

2.) It's incredibly short-sighted to want any of the Big 3 car companies to fail. As I've ranted on many times before, losing the US manufacturing base is a big blow to the economy. Losing any of these companies is a huge blow to the US economy, because there are so many support companies that rely on those company's business.

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Hungary Jack
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Re: Our financial system is crumbling this week.

Post by Hungary Jack »

It's incredibly short-sighted to want any of the Big 3 car companies to fail. As I've ranted on many times before, losing the US manufacturing base is a big blow to the economy. Losing any of these companies is a huge blow to the US economy, because there are so many support companies that rely on those company's business.
I don't want any US company to fail. That's ridiculous. But my level of sympathy for these companies, which have been mismanaged by bungling executives and held hostage by short-sighted unions for decades, is at low ebb. I think my feelings are supported by the fact that there are foreign-owned but mostly non-union locally managed auto plants in the Southeast doing reasonably well in this economy. This dichotomy is an indictment of the Big 3 and the unions that work for them.

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Re: Our financial system is crumbling this week.

Post by Popeye_Card »

Hungary Jack wrote:
It's incredibly short-sighted to want any of the Big 3 car companies to fail. As I've ranted on many times before, losing the US manufacturing base is a big blow to the economy. Losing any of these companies is a huge blow to the US economy, because there are so many support companies that rely on those company's business.
I don't want any US company to fail. That's ridiculous. But my level of sympathy for these companies, which have been mismanaged by bungling executives and held hostage by short-sighted unions for decades, is at low ebb. I think my feelings are supported by the fact that there are foreign-owned but mostly non-union locally managed auto plants in the Southeast doing reasonably well in this economy. This dichotomy is an indictment of the Big 3 and the unions that work for them.
Not sure who to really blame here though. Blame the executives? They invested in what consumers demanded, short-sighted as it may be. Blame the unions? Sure, but they're looking out for themselves, just like everyone else in this country. The US auto industry is a nice example of short-sighted decisions by all parties involved in the name of greed that's rampant in all sectors of the US economy.

As for the foreign companies, they're great, but I don't think they're that great for the American economy. They employ plenty of blue collars and a handful of white collars, but the majority of the profits and jobs are still on foreign soil.

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cpebbles
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Re: Our financial system is crumbling this week.

Post by cpebbles »

Popeye_Card wrote:1.) I wouldn't write-off Jeep as a complete gas-guzzling brand. I'm pretty impressed with the Patriot, which is a nice little Subaru-esque vehcile that's more like a station wagon than SUV. It gets pretty good fuel economy, is spacious, has 4x4, and is much better looking than a Subaru Forrester. Their Compass gets good fuel economy as well. Jeep is probably the only positive thing Chrysler has going for it.
Has Jeep's quality control improved though? The cost of ownership of Jeep vehicles has always been high because of lousy engineering and production standards. I still remember the last one my dad bought. It had this hardened plastic ridge directly in front of the passenger's knees, and such leg room that a tall passenger could not move without bumping into it. I refused to ride in it after one or two trips, for fear that it would turn a 10 MPH fender bender into months in a wheelchair for me.

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Popeye_Card
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Re: Our financial system is crumbling this week.

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cpebbles wrote:
Popeye_Card wrote:1.) I wouldn't write-off Jeep as a complete gas-guzzling brand. I'm pretty impressed with the Patriot, which is a nice little Subaru-esque vehcile that's more like a station wagon than SUV. It gets pretty good fuel economy, is spacious, has 4x4, and is much better looking than a Subaru Forrester. Their Compass gets good fuel economy as well. Jeep is probably the only positive thing Chrysler has going for it.
Has Jeep's quality control improved though? The cost of ownership of Jeep vehicles has always been high because of lousy engineering and production standards. I still remember the last one my dad bought. It had this hardened plastic ridge directly in front of the passenger's knees, and such leg room that a tall passenger could not move without bumping into it. I refused to ride in it after one or two trips, for fear that it would turn a 10 MPH fender bender into months in a wheelchair for me.
Not sure. The only Jeep I've ever owned is a Wrangler, and they of course have their issues (a lot of them brought on by their drivers--guilty as charged).

The other thing I didn't mention about Jeep potentially being added to GM is that it's a distinguishable brand, which is a problem GM really has. No one is really passionate about most GM brands--Buick, Pontiac, GMC, etc. Most of the cars in those brands are slight modifications of other GM vehicles. Jeeps are at least distinct, and they have a passionate following, especially among Wrangler fans.

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Re: Our financial system is crumbling this week.

Post by Jocephus »

i guess now american express is asking for billions of dollars too...

is that all it takes, a formal request??

http://online.wsj.com/article/SB122646207021420153.html

(need log-in to read the whole article)

AWvsCBsteeeerike3
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Re: Our financial system is crumbling this week.

Post by AWvsCBsteeeerike3 »

How do I request billions of dollars?

TimeForGuinness
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Re: Our financial system is crumbling this week.

Post by TimeForGuinness »

AWvsCBsteeeerike3 wrote:How do I request billions of dollars?
I'm sure you can request it...whether they honor that request is another issue.

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