http://www.maxgladwell.com/2008/12/stephen-colbert-weighs-in-on-the-automotive-bailout/ Social Media, Geolocation, and Green Living Wed, 17 Mar 2010 19:50:33 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://www.maxgladwell.com/2008/12/stephen-colbert-weighs-in-on-the-automotive-bailout/comment-page-1/#comment-1864 Car mechanic mark Sun, 14 Dec 2008 19:34:52 +0000 http://www.maxgladwell.com/?p=1032#comment-1864 The Immaculate concession Very funny Steven! I also owned a powder blue pinto. No bailout approved but venture capital welcomed. We will have to save America ourselves. The power of people. Steven Colbert, Rock stars and celebrities for buying American cars. Angelina and Brad love to help so lets get them to lead with a trade of some venture capital going to their favorite causes. We the people can bailout the big three with a focused effort. If the state and local governments want to help the effort they can reduce the sales tax for each sale in 2009. And how about 0 percent financing backed by the government. If the banks will not help the automotive credit market with the money they where given take some back and start a federal financing program to approved buyers. Stimulate and escalate sales saves the industry without additional tax payer money. But yes we will still need that bridge loan to nowhere to get there! The Immaculate concession Very funny Steven! I also owned a powder blue pinto. No bailout approved but venture capital welcomed. We will have to save America ourselves. The power of people. Steven Colbert, Rock stars and celebrities for buying American cars. Angelina and Brad love to help so lets get them to lead with a trade of some venture capital going to their favorite causes. We the people can bailout the big three with a focused effort. If the state and local governments want to help the effort they can reduce the sales tax for each sale in 2009. And how about 0 percent financing backed by the government. If the banks will not help the automotive credit market with the money they where given take some back and start a federal financing program to approved buyers. Stimulate and escalate sales saves the industry without additional tax payer money. But yes we will still need that bridge loan to nowhere to get there!

]]> http://www.maxgladwell.com/2008/12/stephen-colbert-weighs-in-on-the-automotive-bailout/comment-page-1/#comment-1837 Going Green Consulting Tue, 09 Dec 2008 15:15:27 +0000 http://www.maxgladwell.com/?p=1032#comment-1837 The fundamentals of capitalism are either produce and compete, or you are in the wrong business and will inevitably be smothered to death by your competitiors. During the past century, hundreds of car manufactures have come and gone. From Studebaker to Nash to Daewoo, they all evidentially succumbed to the principals of capitalism. And when one company fails, another opportunity opens up for another. Even with the infusion of billions, jobs are going to be lost. That is a reality check. Detroit is quickly becoming the epicenter of the 21st Century dust bowl, which the dust has been blowing for several years. I agree with your analogy of the condo/big three crisis. Great comparison. And they will be back for more. Robert Lutz (GM V.P.) has already stated that. One thing that most economist and congress fail to understand is that the job landscape in America has changed from an industrial-driven society to that of a consumer-driven one. Most Americans now have to sell or provide a service to another. This is where the cheap credit has come into play. Everything from 100% financing to easily obtained credit. But when you comprise your lending standards, you are setting yourself up for doom. And you are correct, we will have to pay for many years of living in this false economy, especially with inflation around the corner from dumping and printing billions of extra money that is being thrown after the bad money. Creating a new sector, such as health care or alternative energy, would have been a much viable solution over throwing good money after bad. This would create a new market for workers to transition to when they inevitably lose their current job. Throwing this money to try to slow the job losses does not help when they actually do lose their jobs - be it 3 months or 6 months from now. The fundamentals of capitalism are either produce and compete, or you are in the wrong business and will inevitably be smothered to death by your competitiors. During the past century, hundreds of car manufactures have come and gone. From Studebaker to Nash to Daewoo, they all evidentially succumbed to the principals of capitalism. And when one company fails, another opportunity opens up for another. Even with the infusion of billions, jobs are going to be lost. That is a reality check. Detroit is quickly becoming the epicenter of the 21st Century dust bowl, which the dust has been blowing for several years.
I agree with your analogy of the condo/big three crisis. Great comparison. And they will be back for more. Robert Lutz (GM V.P.) has already stated that.
One thing that most economist and congress fail to understand is that the job landscape in America has changed from an industrial-driven society to that of a consumer-driven one. Most Americans now have to sell or provide a service to another. This is where the cheap credit has come into play. Everything from 100% financing to easily obtained credit. But when you comprise your lending standards, you are setting yourself up for doom. And you are correct, we will have to pay for many years of living in this false economy, especially with inflation around the corner from dumping and printing billions of extra money that is being thrown after the bad money.
Creating a new sector, such as health care or alternative energy, would have been a much viable solution over throwing good money after bad. This would create a new market for workers to transition to when they inevitably lose their current job. Throwing this money to try to slow the job losses does not help when they actually do lose their jobs – be it 3 months or 6 months from now.

]]>