Saturday, December 6, 2008

Are automakers evil?

As a Detroit area resident,we certainly get a different take on the Big 3 as opposed to other areas of the country.So,I suppose you throw out Sen. Levin's position as well as Shelby's-TN as the opposing viewpoint.Both have jaded interests.Why don't we look at it from someone from say Utah.If I'm a Utah resident,I would like to see a variety of choices of cars to choose from,so I don't understand the clamor to consolidate the Big 3.I also don't want a penny of my tax dollars to go to the Big 3 in a bailout.From an investment standpoint,you want them to do well for your dividends.As an opponent of Nationalized healthcare,I don't want Big 3 retirees doctor bills coming out of my paycheck.

As your considering all the aspects,you can't help but wonder why the political posturing going on only includes the Big 3 and not AIG,Citigroup,etc.Paulson has the authority to write the $34B check today if he wanted.Seems Bush still has some pull.He's blocking the TARP money and getting Pelosi to cave-in on using the fuel efficiency money instead for the stopgap bailout $15B.

Anyway,back to my opening thought.GM still dominates everything here and the UAW members really believe in health care/pension till death.Last I heard,SS and Medicare were unfunded entitlment programs that are going bankrupt.So,I guess even though every worker gets to chip in,there's no guarantee.It's hard for the rest of us to comprehend the thought process that says a company owes you for potentially longer than your years worked contributution.They got their $70+ per hour negotiated compensation for all those years worked.They still get SS and Medicare.Hopefully they invested in their 401(k) and took advantage of the match.While a great hope,I just think it's folly to think that a company should continue to support you after you no longer contribute to their earnings.More to come...

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