Several financial experts have been interviewed on CNBC about the bailout of the Big 3 automakers.
It will take about $30 billion to bailout the Big 3. It will stave off devastating shockwaves to the economy.
If there is no bailout and the companies go bankrupt, their pension and retirement funds will default to the federal government (i.e. the American taxpayer) and the costs will be in excess of $30 billion. 3 million jobs will be lost so 3 million people will be on unemployment and no longer paying taxes.
Do we want to spend $30 billion, and keep 3 million people employed while the Big 3 continue to make the necessary changes to remain viable, and watch the DOW recover . . . .
or
Do we want to spend a lot more than $30 billion dollars, have 3 million people out of work, lose an incredible manufacturing resource, watch the Dow plummet (and our retirements funds) by another 20-30% or more.
The Big 3 having been making major changes, but not fast enough to stay ahead of the recent problems in the economy at large.
Foreign automakers have had huge drops in sales and are facing problems of their own. European automakers are asking help from European governments to keep themselves afloat. Japanese automakers have had a major drop in sales too.
We just spent $40 billion to bail out AIG, and their executives repayed us (the American taxpayers who are footing the bill) by going on a $500,000 luxury travel trip (i.e. a so called “busness seminar”). AIG is one of the reasons we are having problems with are economy in relation to the sub-prime mortage crisis.
The Big 3 didn’t do anything to create the sub-prime mortgage crisis. If we can give $40 billion to AIG, why can’t we give $30 billion to the Big 3 and save a major part of the American economy?
Where is the Secretary Treasury Henry Paulson? Where is the Bush administration? They punted.
Let’s hope Congress can get their act together and prevent another looming crisis. Senators Voinovich, Bond, and Levin are working hard to put something together in the Senate before a 2 month recess. Three cheers for them. The Big 3 may not survive the two month recess without help.
Have you written to your U.S. Senator?
As always, your best television source of business and financial news is at CNBC. No one else even comes close.