Is This Video From The Auto Industry Painting An Accurate Picture Or Just Spreading Fear?

Americans were foolish into being tricked into bailing Banks out.

No one wants to belive the reality of what will happen if the big 3 go belly up. Had this happened during the 70s, it would have instantly plunged us into the Depression. Nowdays, we can just barrow money from the future to make the economic numbers look good and fake the economy, hoping no one will really notice.

This stuff has happened before, when Reagan barowed money to build an 80s economy that went sour with the S&L crisis and Market crash of 1987.

It is amazing how people are led like sheep.

"Americans were foolish into being tricked into bailing Banks out."

Last I checked, Great Britain, France, and Germany were just as foolish.

Is that a shot of a Mercedes-Benz when they flash "Generating $693.3 billion in total new vehicle sales"?

I heard that if the "big three" collapsed (disappeared entirely), there would be a loss of 7 million jobs. That number includes parts suppliers that would fail. I guess I could believe a grand total of 15 million lost jobs due to the general decline in the local economy of those places where large amounts of auto-industry jobs existed.

That said, I doubt that we will see a complete collapse of the big three.

I am sorry I fell asleep in the fist minute...

They left out the most important thing. They did this to them selves. How about all the management become fired and have all of thier possessions sold off and distributed to the workers.

what the video forgets to ask in the end is...what if we give them 25 billion and they still continue to fail?

Actually I don't think that many factories would be sold to other companies because no one needs that much capacity. Unfortunately you are sadly wrong on this issue.

IMO the car brands must be sold to different companies who will sell and service their respective brands. Only buy chassis and engines from GM in the beginning then eventually develop their own. This will put an end to UAW and the independent car brands will be shrunk to a size that is more in line with their very humble sales volume.

It's a catch-22 for sure. If you "loan" them this money, they will back for more in a few months when we start talking about the "D" word more than the "R" word we are in now. Their $$$ burn rate is too high with all the current programs/incentives/debt they have in place. Scaling back to them is like us turning off the light as we leave a room - it's a feelgood but does very little to change the bottom line.

If we don't bail them out, we instantly apply a huge multiplyer into the current crime, welfare, and forclosure levels as well as sacrificing beneficial long term stability for defense products and manufacturing capacity. I'm sure between China and Japan, they can fill a portion of the void left behind but I'm not really sure thats really a "help" in the long run.

So either way - we're really going to be screwed.