Listening to the auto execs this week, hat in hand testifying in front of Congress, you'd think it would have offered a humble moment for them to come clean and own up to their mistakes. But no, they continue to deny any responsibility for the mess they are in. Instead (oh how convenient) they blamed their problems on the current collapse of the economy! That denial alone should exempt them from any "bridge loan."
The best idea I've heard in the last few days comes from an unlikely source, the actor Ashton Kutcher on the Bill Maher show, who repeated the suggestion that the auto industry go meet with the oil industry - their partner in crime - and ask them for a bailout. At least we know ExxonMobil can afford it.
And while we're on the subject, the one piece of good news today is that John Dingell may finally be on his way out as head of the House Energy and Commerce Committee. He had what, like 30 years to get this right? And all he did, over and over again, was enable Detroit to do nothing. It's time to let Henry Waxman assume this important role, particularly since global warming and energy will be the central focus of the committee's upcoming agenda. We can't afford to let Dingell's brand of obstruction stand in the way of real progress any longer.
All this stuff that the american public wants small fuel efficient cars is a myth. Hondas and Toyota's while a bit more efficient not hugely so, do the math. In terms of small cars has anyone seen the size of the a Honda or Toyota lately or noticed that there sales are in the tank.
The Congress yelling about the auto executives flying in private jet's? How many Generals not in Iraq are flying around in their own copters or being driven in large SUV's? How many members of congress have Government cars and drivers. The difference is the auto executives just asked for a loan, our congressman just spend our money and then raise our tax's.
Chicken and egg. Americans do respond to advertising. These monstrosities are the vehicles that Detroit promoted, because they were showing higher profit margins. Smaller vehicles were given short shrift. Consumers played a part, but how many of them were told what they wanted in a vehicle by an industry that just happened to be making that very product?
We pass a per-barrel petroleum tax which, at the gasoline pump, amounts to $0.25/gallon. Some quick calculations suggest that would work out to $5.50 per barrel.
Americans use 93 million gallons of gasoline every day -- so just the gasoline portion of the petroleum tax would generate 512 million dollars, daily.
It would take, at most, 49 days to generate the $25 billion that the Big Three auto companies are begging for. Lend it to them. That means we're expecting repayment, with interest.
Oh -- and then, DON'T repeal the tax.
Use a bit of the rest to pay down America's debts, PARTICULARLY Iraq War debt. Also, use some to offset part of the tax cut that Obama has promised to low- and middle-income wage earners.
Most importantly: use the bulk of the revenue to fund America's infrastructure renewal, the centerpieces of which will be renewable energy and plug-in hybrid cars.
With a petroleum tax generating $186 billion/year, we can afford to think big.
Here is what I believe to be the answer:
1. We should renegotiate all of the loans that are sub-prime and get rid of the ARM forever. All of the loans that are delinquent, or borderline should be extended so that the borrower can meet the payments. In other words, if it takes more than thirty years to repay a loan at three hundred dollars a month, as oppose a fixed thirty year loan with payments of nine hundred, then restructure the loan so that the person can make the payments.
2. Identify all loans and the circumstances that are presently making the borrower delinquent in payments - resolve it by one of two ways. Re-finance the loan terms in such a way that the borrower can make payments, or place that loan at high risk for further evaluation and resolvement.
More... http://cozumelian.blogspot.com/2008/09/how-to-rescue-economy.html
And please, HuffPo, consider this comment carefully before releasing it to the general public. Who knows what danger lurks in the hearts of artichokes?
Amazed.
Surely it's in their interest to do so? Both industry products go hand in hand.
We also need to fire these three CEO's if we have to give them a government bailout.
We need better designed fuel efficient cars.
It is ridiculous to blame the failure of these three automakers on the legacy costs of workers. Where are these workers supposed to go? If a CEO can zip out $15 million per annum in CEO pay why can't the autoworker make a living wage as well.
floundering of the Big 3 Automakers. How about calling for the accountability of George W. Bush and
the Republican Congress that got us into this mess. HOW ABOUT HOLDING THEIR PAY AND
PENSIONS TILL THIS COUNTRY MAKES A TURN AROUND. I'M ALL FOR IT.
because of the do nothing Congress need to remember this when election time comes up. The
Republicans and George are stalling, thinking they don't have to do anything until President Elect
Obama takes the oath of office and dump this matter in his lap. Never mind that the Big 3 might
close up shop, and you loose your home or job. It's no skin off their backs. Their pensions are
secure, and they don't give a damn about the working class of this country.