Dec 22 2008
Bailing out the Big Three is like dumping Cash to the Big Trash!
Thanks goodness, the Big Three only share a piece of $17 billion comparing with the $300 billion rescuing the Fannie Mae and Freddie Mac. As comparing to an economy and the assets these corporation own, $17bn is nothing at all.
Despite how much funds the Federal support these companies, it won’t help them. Luckily, these funds might save these giants for several months to provide jobs for workers and middle classes through the coming depression, but the disaster will be there only if the companies change their method of production.
The threats are Toyota and Honda, plus the coming Chinese automobiles market.
If we make a research on the auto market in the world, the US production on this industry has no position at all. Technology, safety and style will go to German cars; while environment-friendly and economic characteristics must belong to the Japanese ones. American cars are nominated for cheap material and gas-guzzling.
Last month, I was in a try out for a new Dodge Caliber. It had been the car I had dreamed of until the first touch on the door. It was all fragile inside from the seat to the dashboard. As for the Japanese Honda Fit or the Civic, the dashboard is totally well-made and very detailed; while the one put on the Caliber is like a piece of plastic that you can see in Chinese toy sold on a street-market. For the same price comparing this with the Civic, the Caliber gives a worse quality in all and a greater usage on oil. Guess who gonna buy the Caliber? Patriots. Well, I don’t think people will spend their money to buy shit just to save the US economy, plus the population of patriots is a countable figure, which has no impact on the economy.
The Japanese has been the one leading the future of auto market. They have been stressing on the Green Technology with the production of Prius Hybrid and the revival Honda Insight 2009. They have been preparing the battle for years, while the Big Three has done nothing but been producing more and more so-called “muscle cars.”
Therefore, the Big Three has lost the game by far. The Fed, especially Bush, should know that no matter how much money invest into these Big Trash; it will have no return; because the order of the game has already been set.
I know I’m not economic smart or math smart but I think it would have been better to give all of us tax payers the money. If they would give us LARGE amounts of money we’d use it for the economy. Cars, homes etc. It would trickle down to help out the failing banks and what not. I don’t see any of these bail outs helping one bit.
As for the crappy way they make cars; old cars rock! That’s why they are still around today, because they were not made to fall apart. ha ha
I hope you’re wrong, but part of me thinks you’re right.