Smallc Posted January 26, 2009 Report Posted January 26, 2009 http://money.cnn.com/2009/01/25/autos/ford...sion=2009012511 Quote
msj Posted January 26, 2009 Report Posted January 26, 2009 http://money.cnn.com/2009/01/25/autos/ford...sion=2009012511 Why are taxpayers keeping two weak companies afloat (GM and Chrysler) which will do further harm to Ford? Do people not see the type of moral hazard this type of thing creates? Quote If a believer demands that I, as a non-believer, observe his taboos in the public domain, he is not asking for my respect but for my submission. And that is incompatible with a secular democracy. Flemming Rose (Dutch journalist) My biggest takeaway from economics is that the past wasn't as good as you remember, the present isn't as bad as you think, and the future will be better than you anticipate. Morgan Housel http://www.fool.com/investing/general/2016/01/14/things-im-pretty-sure-about.aspx
August1991 Posted January 26, 2009 Author Report Posted January 26, 2009 You don't think that Ford/GM would be stronger today, not to mention more competently managed, had Chrysler failed like they should have?IMV, this is the key question and I tend to agree with msj.Because of the government loan guarantees given to Chrysler, the Big Three (and the UAW) came away with the idea that they could continue as before. Sometimes people have to see the consequences before they really believe them. Quote
bush_cheney2004 Posted January 26, 2009 Report Posted January 26, 2009 ....Because of the government loan guarantees given to Chrysler, the Big Three (and the UAW) came away with the idea that they could continue as before. Sometimes people have to see the consequences before they really believe them. Chrysler wasn't the first such bailout. Lockheed got one, as did several banks, and even New York City. And anybody in the industry knows that Chrysler did not continue as before. Quote Economics trumps Virtue.
msj Posted January 26, 2009 Report Posted January 26, 2009 Just so we are clear on the type of business models that are being subsidized by taxpayers: GM Chrysler Quote If a believer demands that I, as a non-believer, observe his taboos in the public domain, he is not asking for my respect but for my submission. And that is incompatible with a secular democracy. Flemming Rose (Dutch journalist) My biggest takeaway from economics is that the past wasn't as good as you remember, the present isn't as bad as you think, and the future will be better than you anticipate. Morgan Housel http://www.fool.com/investing/general/2016/01/14/things-im-pretty-sure-about.aspx
bush_cheney2004 Posted January 26, 2009 Report Posted January 26, 2009 Just so we are clear on the type of business models that are being subsidized by taxpayers: GM Chrysler Taxpayers already subsidize a much more suspect "business model".....government itself. Quote Economics trumps Virtue.
msj Posted January 26, 2009 Report Posted January 26, 2009 Taxpayers already subsidize a much more suspect "business model".....government itself. Sure, but they are going to do that regardless. No point saddling the taxpayer with even more useless baggage. Quote If a believer demands that I, as a non-believer, observe his taboos in the public domain, he is not asking for my respect but for my submission. And that is incompatible with a secular democracy. Flemming Rose (Dutch journalist) My biggest takeaway from economics is that the past wasn't as good as you remember, the present isn't as bad as you think, and the future will be better than you anticipate. Morgan Housel http://www.fool.com/investing/general/2016/01/14/things-im-pretty-sure-about.aspx
bush_cheney2004 Posted January 26, 2009 Report Posted January 26, 2009 Sure, but they are going to do that regardless. Are they? And if so, why would you expect anything different regarding government bailouts? Quote Economics trumps Virtue.
msj Posted January 26, 2009 Report Posted January 26, 2009 Are they? And if so, why would you expect anything different regarding government bailouts? I suppose, then, we should just expect the government to just always waste taxpayer money and we should never discuss such things. Quote If a believer demands that I, as a non-believer, observe his taboos in the public domain, he is not asking for my respect but for my submission. And that is incompatible with a secular democracy. Flemming Rose (Dutch journalist) My biggest takeaway from economics is that the past wasn't as good as you remember, the present isn't as bad as you think, and the future will be better than you anticipate. Morgan Housel http://www.fool.com/investing/general/2016/01/14/things-im-pretty-sure-about.aspx
bush_cheney2004 Posted January 26, 2009 Report Posted January 26, 2009 I suppose, then, we should just expect the government to just always waste taxpayer money and we should never discuss such things. I don't care what you do when it comes to American decisions about such matters....any conclusions are irrelevant in the end. To isolate this particular round of automotive bailouts from the past is very naive...politically and economically. If it makes you feel any better, we did this same sort of hand wringing back in 1979. Quote Economics trumps Virtue.
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