I think I read in the paper yesterday that Congress demanded they come up with a concrete action plan by Dec 2 on what they plan to do with the $25B if the govt entrusts them with it, and how that will turn them around rather than simply being more money flushed down the toilet, and some were apparently critical of the Congressional demand. WTF? Damn right you better have a good business plan. Anyone else begging for $25B would require a sound business plan. Why the hell should anyone expect them to be treated differently? Why would anyone think they’re automatically entitled to the money regardless of whether it will help or not? I’m proud of Congress for standing up to them and doing the right thing.
[quote=“ac_dropout”]The bailout will come once Obama is in office, he’s pushing for it.
Stop paying dividends and the stock will plummet, easy for an aggressive buyout to occur at that point.[/quote]
And what’s the problem with that? If it happens, it means the stock prices were deliberately inflated by the CEOs to increase revenue (thus, illegal trading practices) and the drop in share prices is a “market correction”.
I find it interesting that everyone turns anti-capitalist when the rules turn against businesses they take part in or support.
No, you’re confused here. Those money already earmarked were set aside for the developement of fuel efficient cars, not to bail out the auto makers. I’ve heard talks about using that money for the bailout but there’s a lot people who feel that money shouldn’t be touched.
Now you’re basically saying the bailout is already a done deal, why is that? Where do you get your news from? The last I heard of it is Harry Reid cancelling the vote as it didn’t have nearly the number of votes necessary to pass. Right now nothing is approved and there’s no guarentee the big 3 will get anything. There’s a lot of reasons why the bail out is a bad idea. And it’s not just the Republicans who think that way, which by the way still has enough seats in Congress to block any bailout plan and Bush is still president which has to sign it.
Also, steamlined or not, the American public just might not want to bail the companies out, period. Like representative Spencer Bachus said, " My constituents do not understand why their tax dollars should go to support what they consider less efficient businesses."[/quote]
OK. As far as I’m concerned the big three should have performed better or failed a long time ago. The impression I got though (just from news organizations) was that the 25 bil was a done deal on the condition that the auto companies show some willingness to improve efficiency. The unions will also be expected to make concessions, you would think, but so far we haven’t seen much talk about that.
I am dabbling in the idea of buying stocks, that’s all. If there is a little money to be made I want to make it and get out. I am going to follow this either way and see what happens. Stock prices go up and they go down. Buy, wait till they are higher, sell and make money. It looks to be that simple. The only thing that could stand in the way is if there is a prolonged downturn (which we appear to be nearing the bottom of) or if you happen to invest in a company with a corrupt or super inept board. The corruption and ineptitude will be weeded out of the big three shortly one would expect, and with another 25 bil the company (and stocks in that company) are just “worth” more, 25 bil more. Isn’t that how it works?
(Note: Everything I say about stocks is complete rubbish as far as I know. I have time to study and so am trying to figure it out. It seems though like there are some people on this board who do know a thing or two though so maybe I (we?) can pick up a few things engaging here. That’s what I’m doing anyway.)
Arrogant bastards. They could screw up my plan for making money!
One of those fat heads was on CNN at a congressional meeting or something last night saying that their was nothing wrong with their business model, and that all their problems were due to the recession. If that’s true why did they lose so much stock value and market share “before” the recession?
I’m curious too about the bailout. Is it a loan, or does the government actually purchase part of the company? Surely they aren’t going to “give” that amount over to an enterprise that over compensates it’s labour and rewards it’s management for failure?