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http://www.cnbc.com/id/26389823/site/14081545?__source=yahoo|headline|quote|text|&par=yahoo

Let's get some things straight. As I write this blog, I'm fully aware some of you will scoff at the idea of the federal government offering billions of dollars to the Big 3 in restructuring loans. I know some of you will say, "Don't give them a bail out. Let'em go under."

With that in mind, there's a long and compelling list of reasons why the federal government should give the Big 3 access to this money.

- Without it, there is a very real likelihood one of the Big 3 goes under. And take it from someone who has covered many a bankruptcy in the airline industry: bankruptcy ain't pretty. You think someone will plunk down $25,000 for a car or truck from a bankrupt automaker? Nope.

- This is not a bailout. Yes, that word will be thrown around, but this is different. The capital markets have essentially shut down. Where are these guys to go to raise the mony they need to re-tool themselves?

- The Big 3 have been restructuring agressively on the own and still more is needed. These guys haven't been sitting around doing nothing. Had I not seen first hand how dramatically they have cut costs in recent years, I'd be against offering them help. But in this case, Detroit's been trying to clean up its act for some time.

- If Detroit's automakers crater, the implications for the broader economy will be significant. The auto industry, which includes parts suppliers, dealers, service technicians, etc., has perhaps the broadest impact on the economy of almost industry. Washington lets part of that collapse, the ripple will be felt.
 

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To be honest, I cant say I'm interested in letting the Detroit 3 access to federal help outside loans. If they got anything outside of loans, whats to stop the automakers from growing dependent towards federal help to get anything done?
 

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Yes they do - i want a new DTS (16) replacement, 900 replacements, new small-car range, volt and competitive XLR. Not to mention that we were put out-of-business in the new CAFE regs and handed the market to Japan. Give them some money to aid all of these endeavors. would anyone like to look at japans auto books for the last 50 years? No, because they are secretive and wont allow us to gauge the huge federal, free support toyo-honda-nissan has recvd.
 

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Hmmm. I understand that the Japanese government has intervened on behalf of Honda and Toyota on a number of occasions; funding numerous new projects and plants. They have done this because they most likely realized that healthy heavy industry is healthy for it citizens all the way around. While I don't think that the government should dabble too much in the private sector, there are situations where I think they have a responsibility to preserve some stability...and this is one of them. How can the Big Three compete with Japanese rivals that benefit from massive ongoing financial support from their government? These loans are not a bail-out, they are simply an attempt to level the playing field for once!
 

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By selling product.
With the housing market collapsing, financial markets under extreme pressure and running scared, people are afraid to spend the money to buy a new car or truck. People have heard that our car manufacturers may fail, and that makes them worried even more. Federal loan help will mean that people will know Ford, GM and Chrysler have a future, and therefore less risky to buy from them.
 

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First they are not Big 3. That is history. Maybe Big 1.5. Second If gov. will provide money to gm. Rick and lutz must go. They put company in this mess by ignoring cars. Saying hybrids are joke. Nobody wants them. Then they build hybrid tahoe that nobody wants and tell you we told you so. Toyota already sold over 1million hybrids. Lutz said Americans do not want small cars. They will buy them only if price of gas is $8. Well Americans would not buy crap like aveo and cobalt even if price of gas is at $8 lutz. Look at current aveo and cobalt both have 40% fleet sales and employee discount and they still can not come anywhere close to civic or fit with 1% fleet sales and no discount. That is because cobalt and ave are poor quality and have terrible resale value. How about lutz you look at honda and how they were always able to sell small high quality cars and always make money of of them. Even when you sad that nobody wants small cars, honda was making billions. WHy should gov. give money to these two idiots?
 

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Hmmm. I understand that the Japanese government has intervened on behalf of Honda and Toyota on a number of occasions; funding numerous new projects and plants. They have done this because they most likely realized that healthy heavy industry is healthy for it citizens all the way around. While I don't think that the government should dabble too much in the private sector, there are situations where I think they have a responsibility to preserve some stability...and this is one of them. How can the Big Three compete with Japanese rivals that benefit from massive ongoing financial support from their government? These loans are not a bail-out, they are simply an attempt to level the playing field for once!

Do not forget that Gov. Gave money to GM, Ford And chrysler to make hight mpg car. What did they do with that? they build suv. While japanies gov. gave money to honda and toyota to the the same and they did it. Also didnt gov. gave huge tax credits for buying hummers if you own a farm or you are self employed? See Gov. helped gm and ford they just put that money to wrong use.
 

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Do not forget that Gov. Gave money to GM, Ford And chrysler to make hight mpg car. What did they do with that? they build suv. While japanies gov. gave money to honda and toyota to the the same and they did it. Also didnt gov. gave huge tax credits for buying hummers if you own a farm or you are self employed? See Gov. helped gm and ford they just put that money to wrong use.
the situation had change since, Toyota now make their own gaz-guzzlers: Tundra, Sequoia, LX470,...(same with Nissan with their Titan/Armada/Infiniti QX56), the new Honda Pilot 2009 fuel mileage is around 16/23MPG
 

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I'm probably OK with my tax dollars being given to struggling companies in the form of loans, as long as there is oversight and assurances that the money will be repaid (with interest).

I'm not OK with my tax money being given to people or companies as handouts or incentives to buy cars. As Xenon mentioned, giving free handouts only encourages more irresponsible behavior on the part of these companies. If they're so important, they need to set an example and take responsibility for their actions. If not, our economy is doomed.
 

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Do not forget that Gov. Gave money to GM, Ford And chrysler to make hight mpg car. What did they do with that? they build suv. While japanies gov. gave money to honda and toyota to the the same and they did it. Also didnt gov. gave huge tax credits for buying hummers if you own a farm or you are self employed? See Gov. helped gm and ford they just put that money to wrong use.
... It's spelled "Japanese". The Japanese government has funded numerous projects for Honda and Toyota. Detroit has received far less support from the government than the above mentioned companies. We know for a fact that there are numerous small cars and downsized SUV's in the pipeline for GM right now, all more fuel efficient. A federal restructuring loan would have a high probability of going to vehicles such as the Volt, development of the new Aveo and getting vehicles like the new Cruze to (North American) market quicker. Perhaps GM wouldn't be forced to delay updates on fuel efficient cars such as Malibu if they could get a hand up. GM isn't designing new trucks and SUV's right now, they're building cars and cross-overs.
 

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"The Japanese government has funded numerous projects for Honda and Toyota. Detroit has received far less support from the government than the above mentioned companies." Dont forget about the germans and koreans - virtual partners with their govts; E.g. VW is owned by the state of Lower Saxony to the tune of 20.75 percent. The Koreans continue to spend vast swaths of money on their automakers- they see it as economic development. The same way most building projects in our cities are partly-funded by their local taxpayers.
 

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It's biased to mention the benefits of Socialist economies without mentioning the exorbatant taxes that are collected in those countries. People in America want all the benefits of Socialism, but they never think about where that money comes from. It comes from our taxes, which are high enough.
 

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Its "the grass is always greener........... " syndrome.

Liberals have a tendency to believe that everything is possible, just because they want it to be so. They think that gun control reduces crime. The think that welfare helps people. They think that universal healthcare is possible by just legislating it. They think that making more laws reduces crime. They think that environmentalism will save us all from ourselves. They think there is global warming, that we can control. They think that we are to blame for 9/11, and for other countries/cultures hating us. They think that if we just apologize enough, for being Americans, and just talk to extremists and terrorists, that they will stop targeting us for extinction. They think that socialism is good............ as long as it does not affect "their" freedoms. Etc. Etc.

**** Disclaimer***** This does not mean that all Liberals think this way. Just like all Conservatives are not big business loving bible thumpers. These are just a few of the things that I see................ from Presidential candidates, to all political candidates, to the media, and even on these forums.

It is this narrow view of thinking, that is causing alot of the problems today. Look at the benefit, without ever thinking about the cost. Those are just more of those silly details that very few want to even consider.
 

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First, we all know who bokl is and might as well be ignored since intelligent discourse is impossible.

That said, the point about not being a Big 3 is relevant. It will probably take a miracle for GM and Ford to survive, potentially government intervention in some form. It may be too late for Chrysler already and who knows what Cerberus' plans are.
 

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I certainly hope this helps out better than it did when the government agreed to voluntary quotas on imported vehicles in the 1980's.

I hope it works out better than when the US government decided to help out Detroit with tax breaks for FS SUV's that fostered their dependence on those vehicles [that's doing them so well now].

I hoped it works out well, just like it did when the US government offered incentives for consumers to buy hybrids. Oops, only Asian brands really have models that have significantly benefited.

I hope it works out better than the $165 billion we recently borrowed from China so that we could give low income households "wealth redistribution checks" so that they could buy more crap from China and make us even more beholden to them. Somehow, the economy doesn't seem any better for it in the long-term, does it?

I hope it works out better than when the government went after Mircosoft for being too successful (and was complicit when the EU duplicated the efforts across the Pond).

I hope it works out better than when the government helped out [and continues to help out] the oil industry that desperately (ahem) needed subsidies and tax breaks to foster the nation's dependency on foreign oil from friendly nations.

I hope it works out better than the entire welfare system, which promotes independence and a sense of purpose and place for American citizens. Not so much.

I hope it works out better than when the federal government assisted the corpses on the street after Katrina hit; those debit cards really went a long way to helping out the people in need.

I hope it works out better than when the government initiated plans to loosen credit so that more Americans could buy homes; after all, everyone should own a home!

Wait a minute. It seems that the federal government isn't so helpful after all.

Anyway, get the checkbook out. This will be money well spent. After all, Detroit has shown so well that it manages its business well. I'm sure the government will see its money again. 100% sure.
 

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You naysayers need to remember that if the big 3, or whatever you want to call them now go under, the US taxpayer is going to be paying the pensions of upwards of 500,000 retirees. Not to mention all the other related industries and municipalities that have already been or will be hurt.
Think about it??

Boki you thinking yet??
 

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How are they going to pay the loans back?
The idea is they would spend the money on more desirable product, and then they could make more money. GM is at the point where they are cutting R&D costs, which is a last resort.

The C7, the Cadillac flagship, and many other cars are being put on hold right now just because they can't afford it.
 
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