By on September 29, 2008

A moment’s pause, if you will, to remember that the U.S. auto industry’s future depends in no small part on the “other bailout:” the $700b rescue plan for Wall Street. Motown’s sales have long relied on the art of the deal to move the metal. Bottom line: GMAC, Ford Motor Credit and Chrysler Financial all wrote a shit load of bad paper to keep the factories humming (not to mention GMAC’s ResCap mortgage unit’s adventures in subprime sugar). If the domestic automakers can’t tap into the bailout bucks to restore their ability to lend money to new car buyers, well, let’s call it an accelerant. While I cruise the internet looking for more grist for our metaphorical mill, I invite TTAC’s Best and Brighest to read the draft of the bill, or simply speculate, on the captive finance units’ chances of resuming louche lending practices. Hey. It’s what the President wants.

Get the latest TTAC e-Newsletter!

10 Comments on “Don’t Forget the “Other” Bailout…...”


  • avatar
    Airhen

    As Ronald Reagan pointed out the most frightening words in the English language are “I’m here from the Government and I’m here to help”.

  • avatar
    psarhjinian

    As Ronald Reagan pointed out the most frightening words in the English language are “I’m here from the Government and I’m here to help”.

    Yes, and Reagan was one of the presidents that punted debt into the stratosphere, precipitating the recession of the early nineties. Bush The Elder had it right when he called Reagan’s platform “Voodoo Economics”.

    There’s tax-and-spend, and then there’s spend-and-spend-and-spend.

  • avatar
    snabster

    Well, what is a shame that since GMAC is a separate company now, when they sell their crap to the US government, we won’t be able to put limits on how much we are paying GM executives.

    Because, you know, the money attracts talent.

    Hey, I met a real live Chevy Malibu driver this weekend. He was astonished that my 15 year old Saab would have an outside temperature gauge.

  • avatar
    windswords

    psarhjinian,

    No, it was the tax increase (believe or not they called it a deficit reduction plan!) passed by congress and signed by Bush The Elder that caused the recession of the early 90′s. The plan was to “reduce the deficit” by raising taxes and curbing spending. Well, they got the raising taxes part right, they just never got around to curbing spending. Then the Democrats blaimed Bush for signing the bill that they pushed (“Hey, you said ‘read my lips’” (pout)). So much for bi-partisanship. Actually the year on year defict had been going DOWN in the late 80′s as the expanding economy took in more and more revenue. By the end of the 80′s revenues to the federal treasury had doubled. But congress could always spend more. Taxes have a direct effect on buisiness activity, deficits do not. In all my years spent in business I have NEVER heard a CEO or CFO say “you know the federal debt/deficit is too high, so we are NOT going to increase production/open the new factory/expand the existing one/develop a new product line/remodel the stores/open new stores/buy a competitor”.

  • avatar
    menno

    I was forwarded this, this morning:

    This article just about tells it all, as to why this country is in deep trouble.

    Charlie Reese is a former columnist of the Orlando Sentinel

    This is the simplest, most understandable and truest explanation of the woes of the nation and who caused them, as well as how to cure them. This
    should be sent to every person in the U.S., including the ’545′.

    “545 People By Charlie Reese

    Politicians are the only people in the world who create problems and then campaign against them.

    Have you ever wondered why, if both the Democrats and the Republicans are against deficits, we have deficits?

    Have you ever wondered why, if all the politicians are against inflation and high taxes, we have inflation and high taxes?

    You and I don’t propose a federal budget. The president does.

    You and I don’t have the Constitutional authority to vote on appropriations. The House of Representatives does.

    You and I don’t write the tax code, Congress does.

    You and I don’t set fiscal policy, Congress does.

    You and I don’t control monetary policy, The Federal Reserve Bank does.

    One hundred senators, 435 congressmen, one president and nine Supreme Court justices – 545 human beings out of the 300 million – are directly, legally, morally and individually
    responsible for the domestic problems that plague this country.

    I excluded the members of the Federal Reserve Board because that problem was created by the Congress.

    In 1913, Congress delegated its Constitutional duty to provide a sound currency to a federally chartered but private central bank.

    I excluded all the special interests and lobbyists for a sound reason.

    They have no legal authority.

    They have no ability to coerce a senator, a congressman or a president to do one cotton-picking thing.

    I don’t care if they offer a politician $1 million dollars in cash. The > politician has the power to accept or reject it. No matter what the
    lobbyist promises, it is the legislator’s responsibility to determine
    how he votes.

    Those 545 human beings spend much of their energy convincing you that what they did is not their fault. They cooperate in this common con
    regardless of party.

    What separates a politician from a normal human being is an excessive amount of gall.

    No normal human being would have the gall of a Speaker, who stood up and criticized the President for creating deficits.

    The president can only propose a budget.

    He cannot force the Congress to accept it.

    The Constitution, which is the supreme law of the land, gives sole responsibility to the House of Representatives for originating and approving appropriations and taxes.

    Who is the speaker of the House?

    She is the leader of the majority party.

    She and fellow House members, not the president, can approve any budget they want.

    If the president vetoes it, they can pass it over his veto if they agree to.

    It seems inconceivable to me that a nation of 300 million cannot replace 545 people who stand convicted — by present facts – of
    incompetence and irresponsibility.

    I can’t think of a single domestic problem that is not traceable > directly to those 545 people.

    When you fully grasp the plain truth that 545 people exercise the power of the federal government, then it must follow that what exists is what they want to exist.

    If the tax code is unfair, it’s because they want it unfair.

    If the budget is in the red, it’s because they want it in the red.

    If the Marines are in IRAQ, it’s because they want them in IRAQ.

    If they do not rec eive social security but are on an elite retirement plan not available to the people, it’s because they want it that way.

    There are no insoluble government problems.

    Do not let these 545 people shift the blame to bureaucrats, whom they hire and whose jobs they can abolish; to lobbyists, whose gifts and advice
    they can reject; to regulators, to whom they give the power to regulate and from whom they can take this power.

    Above all, do not let them con you into the belief that there exists disembodied mystical forces like ‘the economy,’ ‘inflation’ or ‘politics’ that prevent them from doing what they take an oath to do.

    Those 545 people, and they alone, are responsible.

    They, and they alone, have the power.

    They, and they alone, should be held accountable by the people who are their bosses – provided the voters have the gumption to manage their own
    employees We should vote all of them out of office and clean up their mess!

    Send a message – We should vote against EVERY incumbent this November.”

    Personally, I believe an even stronger line. Don’t for for ANY Republicans or Democrats. ONLY for Libertarians or Constitution Party.

  • avatar

    stick a fork in it – and kiss 700 pts off the dow as well.

  • avatar
    mel23

    You can’t cheat an honest man nor can a democratic government poorly serve an informed and involved electorate. People in Congress behave the way they do because most of us don’t pay attention and don’t want to hear the truth. Elected people are just symptoms.

  • avatar
    golden2husky

    nor can a democratic government poorly serve an informed and involved electorate.…

    How true. If only people would pay attention and consider the actions of politicians instead of just the party before voting. I never understood the “party pulling” method of voting.

  • avatar
    obbop

    A federal government of for and by an elite class.

    The Founders intentionally designed it that way.

    The Founders expected the elites to possess a sense of honor that would direct the elites to consider the good of the people and the country as a whole along with what was good for the elite class.

    The Founders faith in the priveleged class may have been okay in their time but times changed.

    You folks know what we have now.

    You and I can give one vote.

    Corporations and special-interest groups offer HUGE speaking fees and wondrous careers after the politicos leave office.

    No laws broken, no promises made… it’s just the way the “game” is played.

  • avatar
    menno

    Thing is, obbop, that there is a certain percentage of “awake” or “awakening” US Citizens who are tired of the deck constantly being stacked against them, in this “game”.


Back to TopLeave a Reply

You must be logged in to post a comment.

Subscribe without commenting

Recent Comments

New Car Research

Get a Free Dealer Quote

Staff

  • Authors

  • Brendan McAleer, Canada
  • Marcelo De Vasconcellos, Brazil
  • Matthias Gasnier, Australia
  • Tycho de Feyter, China
  • W. Christian 'Mental' Ward, Abu Dhabi
  • Mark Stevenson, Canada
  • Faisal Ali Khan, India