Wednesday, December 3, 2008

The bailout, perspective from a recent retiree

A commentator at Edge of the American West gets to a few points that I have made in discussions with friends but haven't really discussed on the blog. His perspective is certainly a unique one in the din of pontification on the Big 3,

This hit’s me very close to the heart, since I am newly retired (like Monday) from the smallest and most frail of the big three. What almost nobody talks about are:

1) the European and Chinese(!) car companies are going to their governments for bailouts - and getting them.
2) The big 3, especially GM were doing reasonably well selling those SUVs, etc. that nobody wants now, until about about 18 months ago. (I will never defend corp mgmt, or their decisions, but let’s not pile on more blame than is deserved.)
3) Foreign car cos. don’t have the health care cost burden.
4) The global financial meltdown is a big part of what’s keeping people from buying cars.
5) The unions have given back a lot in recent years.
6) what the big three are asking for in loans is decimal dust compared to what the finance and insurance cos. were given, with no questions asked: bailout and loan guarantees approaching $8 Trillion!

I don't think there is anything especially profound here and each point is worthy of its own discussion. That said this is a concise summation of what I think are some of the more persuasive arguments in favor of the bailout.

His blog is here.

1 comment:

Mberenis said...

You have a good perspective, and my family too is recent retirees. I've resorted to blogging as a way to stay positive. In my blogging, i've made several outstanding finds that most people would be surprised to hear. Whether you realize it or not, the bailouts are making life easier. I've been doing some research, and there's more grants and lower APR's out there now than before. Bailout is for you too!