Big 3 bailout

[GoodmanBrown]

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Not that we need more political rancor on the forum, but I'm just curious how some of the more libertarian posters feel about the bailout of the big 3 automakers.

All 3 have fully paid back the government loans, and they're all making nice profits now. Worth it?

 

[deleted126335]

Not that we need more political rancor on the forum, but I'm just curious how some of the more libertarian posters feel about the bailout of the big 3 automakers.

All 3 have fully paid back the government loans, and they're all making nice profits now. Worth it?

It was a partial bailout-union obligations were bailed out and these HAVE NOT BEEN REPAID.
Bondholders and other lenders were left twisting in the wind. (as they should have been. But so should union obligations) GM and Chrysler defaulted on these obligations no gummit money satisfied these obligations.
This was not a bailout of the auto industry. It was a bailot of two companies. Ford, the company that performed better and behaved well is actually disadvantaged by NOT declaring bankruptcy. They were also denied the spoils of a supposedly competitive capitalist system.

 

[Narcotized]

Not that we need more political rancor on the forum, but I'm just curious how some of the more libertarian posters feel about the bailout of the big 3 automakers.

All 3 have fully paid back the government loans, and they're all making nice profits now. Worth it?

It was overall an horrendously bad idea. The loans were paid back with other government money and the taxpayers are still expected to lose around 40 billion dollars. Any "profits" they are making are supported by a propped up economy, ie cash for clunkers, stimulus, massive deficit spending, etc.

There was no restructing that would have happened without being propped up by government. Basically, a complete failure of not letting the market place kill off the dinosaurs and replacing them with leaner meaner cleaner more efficient companies. We all suffer as a result of that in the form of less total economic wealth.

 

[Bertelman]

All we have to show for it are the same lousy inefficient companies. There was no restructing that would have happened without being propped up by government. Basically, a complete failure of letting the market place kill off the dinosaurs and be replaced with leaner meaner cleaner more efficient companies. We all suffer as a result of that in the form of less total economic wealth.

I'm having trouble separating this economic policy from the government interference we seek to keep CRNAs out of our business. Applied to our industry, this sounds like a manifesto for AMC takeover and care team model for all.

 

[GoodmanBrown]

It was a partial bailout-union obligations were bailed out and these HAVE NOT BEEN REPAID.
Bondholders and other lenders were left twisting in the wind. (as they should have been. But so should union obligations) GM and Chrysler defaulted on these obligations no gummit money satisfied these obligations.
This was not a bailout of the auto industry. It was a bailot of two companies. Ford, the company that performed better and behaved well is actually disadvantaged by NOT declaring bankruptcy. They were also denied the spoils of a supposedly competitive capitalist system.

Doze, do you have links for the amount that went to union obligations? I haven't been able to find anything regarding that.

 

[Narcotized]

.

 

[Narcotized]

We did not make money on the auto bailouts. Always remember, CNN and MSNBC will say anything to support Obama at any cost with any lie if necessary, and FOX will say anything to discredit Obama at any cost with any lie if necessary.

http://online.wsj.com/article/SB10001424052702303745304576361663907855834.html

 

[GoodmanBrown]

We did not make money on the auto bailouts. Always remember, CNN and MSNBC will say anything to support Obama at any cost with any lie if necessary, and FOX will say anything to discredit Obama at any cost with any lie if necessary.

http://online.wsj.com/article/SB10001424052702303745304576361663907855834.html

👍

Interesting article.

 

[cincincyreds]

I assume you were not a GM bond holder receiving 5 cents on the dollar for a supposed safe investment. I guess there are winners and there are losers.
I guess you can now get your chevrolet volt with an exploding battery if the car gets into an accident. Sounds like a good investment for the taxpayer.

 

[Osteoimperfecta]

Not that we need more political rancor on the forum, but I'm just curious how some of the more libertarian posters feel about the bailout of the big 3 automakers.

All 3 have fully paid back the government loans, and they're all making nice profits now. Worth it?

Worth it? I dunno, maybe it was. I would have let them reorganise, that way their profits can be sustainable. I still don't trust their long term stability.