Aig Auto Loans

I don't remember Lehman Bros, Citi Group, AIG, and the other firms bailed out having to put up a plan for free tax payer dollars. Yet the car companies have to jump through a million hoops for a loan. Whats up with this picture?

They should have been...
Look what they did the next day... They all went to the SPA!

What this country needs is a good 10cent cigar to smoke while watching a few CEO's hang from a Wall Street roof!

2008-12-01 10:04:51 by jd

Pure insanity. By getting "warrants" wiping out 80% of shareholder equity, Paulson has painted a target on the back of every firm in ...

Personally I'm against most if not any bailout plans, but we Bailed out AIG, Fanny-may, and Freddie-mac for $700,000,000,000. That bailout was literally giving away money, and hoping the people left in charge and those already in power will use it correctly. At least the Auto-Bailout is a structured loan. If it's a loan, then the principle should eventually be paid back + the interest. It's less money to start with. Not to mention there is already a historical auto bailout that was successful, and all we need to do is adapt the lessons from that part of history, to get even minimal success. I just don't see how we can justify giving away $700,000,000,000.0 to absolute failures, who only needed to handle money correctly, but we won't Loan $25Billion to companies that make real product, and get cash flowing in every direction.

Again, Personally I'm against any of this type of gov. involvement, and think that The Big 3 would be better off in Bankruptcy court. However, If we're going to give money away, then The auto-makers seem like a better, and less shady investment.
So far I agree with all of you, the 1st 3.

With the economy in the toilet, are you going to run right out and buy a new Chevy the day after the bailout?

Unless people can buy the cars that any of the big 3 make, a bailout is NOT going to help anyone and they will just go bankrupt later instead of sooner.

The autoworkers could work for free, the unions disband and the CEO's and shareholders give up all their interests and golden parachutes and everything.....

It's not going to help unless cars are bought. And nobody is buying right now.

The banking industry was bailed out without controls being put into place, and obviously that was a MAJOR mistake. I think with the auto industry they are trying to rectify that.

I read a question that asked, "Why didn't the oil companies bail out the auto industry?" They made record profits this year....why didn't they? The reason - Nobody is buying cars. Not selling product makes zero dollars. For the oil companies to invest in the auto industry would simply drag them down as well.

And you can't pay back loans without income from selling product.

And why am I still seeing Hummer ads on tv? Is this a sign of willingness to "change" how they are doing business? Don't think so!!!

2008-12-15 07:10:33 by Stephen Colbert for President

Is the incoming administration interested in saving the industry or just saving UAW jobs? Won't a Structured Bankruptcy hurt auto suppliers, many of them small businesses and their employee's? Why is our government so fast to GIVE the insurance industry (A.I.G.) 185 BILLION dollars, BAIL OUT bank after bank whose multi- millionaire CEO's mismanaged their assets while absconding with tens of millions of our bail out dollars as "BONUSES", but won't LOAN less than 4 percent of that total public obligation to the autos? American cars are every bit as fuel efficient as imports and every bit as high quality... so where is the problem. Could the auto problems stem from among other factors a hostile uninformed press, overly generous UAW contracts which cost an average of near $80.00 per man hour for unskilled labor as compared to American "built " Imports costing an average of under $40 per man hour and dried up liquidity in the financial markets due to government "regulation" (not deregulation) lowering the bar for mortgage qualification thereby destroying the free market system and injecting arbitrary governmental influence on financial institutions for the lofty goal of helping the poor "buy" houses. None of which had ANYTHING to do with the autos. Remember...the AIG deal was done in the dark of night with NO hearings or repudiations by dysfunctional and clearly unqualified members of congress. Our country needs a messiah FAST!
If bankruptcy is the answer...what about the tens of thousands of people that are employed at the suppliers that will be stiffed and ultimately are forced to file bankruptcy themselves... Is that the Barack Obama "bankruptcy" economic plan? I guess Bill Clinton (and now Barack Obama) never consider unintended consequences...like pre-911 when Bill Clinton dismantled our military and foreign intelligence operations ...and then called it a PEACE dividend...and a federal surplus...Oh those pesky unintended consequences!

Definitely hurt. There are auto manufacturers for Toyota, Honda, and BMW with factories built in the US in the last decades, and these auto manufacturers don't have the issue of the American manufacturers. This is insanity to not have pre-conditions to drastically reduce salaries and the resort hotel conferences and miscellaneous expenses. I worked with one of the auto manufacturers and can tell you first hand that they have too many managers and too much time on their hands, plus are over paid.

2008-11-24 09:06:41 by Lovebrother

Ok, we spend weeks and weeks talking about the auto makers and their request for 20-30 billion dollars worth of LOANS. All the while, we GIVE AIG over 200 billion... what the heck is going on. This is over 25% of the total bail-out. Who gives a rats-a** about AIG? Apparently somebody does since they will get more from the bail out than any other entity. Wake up america, the auto-maker bail-out talks are a distraction so you don't follow where the money is really going.

Who gives a rats-a** about AIG?

AIG was the biggest insurer in the WORLD before all this started. Their assets were over 1 TRILLION dollars. They are a huge GLOBAL company.

They are not just an insurance company, they have a derivates-trading subsidiary, which was the core of the problem. This subsidiary had huge dealings with almost every financial institute in the country. The subsidiary was losing all the money, which was also affecting the insurance company.

Some analysts said that AIG going bankrupt would have been an extinction level event for the entire US financial market. Adding to the fact that AIG was the biggest insurer in the world, meaning thousands of individuals and businesses would be affected, and you've got a pretty good reason for a bailout.

2008-12-14 08:46:34 by minnesotReader

United Socialist States of America?

We have a socialist retirement system. We have a socialist health care system for the elderly. We have automobile and aviation companies on the verge of bankruptcy or government ownership due to legislation and regulation in oil prices that could be half of what they are if Congress got out of the way. Look at me. The problem with General Motors and Ford and Chrysler and domestic auto manufacturers is not that they don't know how to run their business. They are all kicking butt internationally. Ford, General Motors are selling cars out the wazoo internationally. You know what they don't face? The same kind of onerous regulation they have here. You want to fix the Ford auto industry, General Motors, local, domestic auto industry, just get rid of the CAFE standards. The idea that people that run the auto companies do not know how to make cars that people want has been obscured by the fact that they've been forced to make cars fitting mandates offered by government, people in government who have never built a car, have never designed a car, have never marketed nor sold a car. Just get government out of their way, and then let 'em sink or swim on their own. How is it that all three of them are up the creek? All three of them face the same onerous regulations.

What about oil prices and the effect on the price of a car and the mileage and the kind of car you want? Get Washington out of the way on that, not this phony bill that Nancy Pelosi ushered through the House. We can drill everywhere there isn't oil now, and you know why they had to usher this through? 'Cause they knew it was a losing issue for them. We had 'em right between the eyes. We had 'em right in the palm of our hands. They were on the wrong side of this drill, drill, drill, right here, right now, business, so they usher through this stupid thing. It's the same, the Gang of Ten, gang of 16, now gang of 20 in the Senate -- oh, yeah, we're going to allow drilling, we're going to drill, drill, drill, but it's gotta be further than 50 miles offshore. Most of the oil is closer than that, so Big Oil has been told go ahead and invest and drill where there isn't any oil, which they won't do.

Read the Background Material...

• Wall Street Journal: Loosen Deposit Insurance Rules To Prevent a Bank Run
• Wall Street Journal: The Deeper the Downturn, the Quicker the Recovery
• Politico: Fed Bails Out AIG with $85B Loan
• AP: Obama buys 2-Minute Commercial On Economy
• National Review: Obama's Hypocrisy On Foreign Spending - Andy McCarthy
• HotAir: Obama: Hey, Remember When I Came Up With
The Plan For That Stimulus Bill? Democrats: Um, No
• Newsbusters: CNN's Crowley: Obama Team Wanted 'Horrific' Wall Street Headlines
• Investor's Business Daily: The Real Culprits In This Meltdown
• HotAir: Whose Policies Led To The Credit Crisis?
• American Thinker: Jamie Gorelick's Two Trillion Dollar Disasters





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