Re: [Amc-list] Big 3 - My Take

[John C Hughes <jchughes48114@xxxxxxx>]

Hi All,
I've posted a few times and appreciate the responses, but since the Auto 
bailout can of worms has been opened, I like to throw my take in.

I have to admit, like so many Americans, I’m having the hell scared out 
of me by what’s going on today. It’s hard to believe how Washington can 
have opposing views on a subject that will have devastating effects on 
our economy. I’m talking about the bailout for the American Auto 
Industry. Normally I wouldn’t favor such a deal, but given the 
devastating impact on the American economy, I support it. We’re talking 
about millions of people out of work, part suppliers collapsing along 
with car dealerships, restaurants, medical insurance carriers, prime 
mortgages in default, the list is endless. Are they nuts not to support 
this? What kind of principles are they standing on?

I’ve heard so much from Washington why we shouldn’t bailout the 
industry. Reasons like, it’s their fault because they don’t produce 
products Americans want. They produce gas hungry SUV’s and trucks. It’s 
their fault for not seeing into the future. The quality of American cars 
is bad. The unions caused this and the one that smells with hypocrisy 
the most is “Why should we use American Tax dollars to bail out the Auto 
Industry”. Where were those politicians the last 8 years while they 
piled on an additional $5 Trillion to the national debt? Sounds penny 
wise and dollar foolish to me.

Why aren’t we concerned about tax dollars with the $700 billion bailout 
of Wall Street and where is the Justice department in that bailout? 
After all, the collateralized debt obligations (CDO’s) of sub-prime 
mortgages was misrepresented by giving those bonds a AAA rating and sold 
to banks through out the world! That was Trillions of dollars! Wonder 
why we now have a world wide banking crisis?

Consider this, today’s cars are the most sophisticated consumer product 
by far. The average vehicle has 30 to 50 computers on board. Those 
computers control everything from vehicle emissions, fuel economy, 
safety systems, vehicle handling to entertainment systems and there’s 
far more. Consider the engineering in materials for vehicle safety, 
durability and weight. All this and they manufacture them at an 
affordable price too. Tell Senator Sessions of Alabama that these 
sophisticated products are produced by dinosaurs!

How did the Auto Industry get into this mess? Here’s what happened. The 
war in Iraq caused disruption in the oil supply. The war stopped 2-3 
million barrels of oil per day from being produced in Iraq. Saber 
rattling in the oil rich Middle East with threats of invasion against 
Iran. The Hedge fund speculators driving up the price of oil to $150 per 
barrel vs $25 before the war. All this resulted in $4.25+ a gallon 
gasoline, up from $1.25 and the car market changing overnight. Consider 
those CDO’s, they equalized our trade imbalance brought on by the moving 
of manufacturing to China. Who would blame the world for not giving us 
anymore credit. The result is a credit crunch. People can’t buy cars 
because there’s no credit, the result is the Auto Industry’s cash flow 
has slowed to a trickle, HENCE THE BAILOUT!

Who can blame the Auto Industry for producing SUV’s, after all they are 
a high profit vehicle that consumers wanted. Isn’t that the capitalistic 
way? Can they be held responsible for the rug pulled out from under them 
by reckless trade, oil and war policies? After all, they can’t develop 
products this sophisticated overnight. They did sell a lot of SUV’s, 
because people loved them, not because they were forced to buy them.

If we loose the Auto Industry, besides the economic devastation, 
consider the future of energy independence. Consider cars like the Chevy 
Volt, a vehicle that will go for 40 miles on a electrical charge, the 
equivalence of 8 cents a gallon of gas. Consider GM’s Hywire vehicle, a 
fuel cell vehicle that will run on H2 and emit zero emissions. Consider 
our National Defense with the loss of the Auto Industry’s technology. Do 
we want to buy this from China?

One last item to consider: According to Bloomberg, both Goldman Sachs 
and Morgan Stanley are scheduled to pay out bonuses of $6.85 billion and 
$6.44 billion respectively. These are firms that are being bailed out by 
the $700 billion package just passed by congress. Those two firms are 
getting bonus money equal to half what the Auto Industry is asking! Some 
news agency's are reporting that Wall street bonuses will approach $70 
billion dollars. That's roughly 3 times the amount the Auto Industry is 
asking. What is going on! I'm outraged!

If you agree with me, I urge you to contact the Senator’s in Washington 
that oppose this. Talk to your friends, there’s no time to waste. I feel 
our American way of life is at risk.

Thanks for reading, John Hughes

Three Senators that oppose the bailout:

Sen. Jeff Sessions of Alabama http://sessions.senate.gov/email/contact.cfm
Sen Jon Kyl of Arizona http://kyl.senate.gov/contact.cfm
Sen. Christopher Dodd of Connecticut 
http://dodd.senate.gov/index.php?q=node/3128
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