With the Senate's refusal to approve a loan package to keep auto companies afloat, the potential economic impact of bankruptcy or failure of any or all of the Big Three is worrying typical Americans and industry analysts alike. Full Story »
Posted by Derek Hawkins
This news analysis is somewhat superficial because it attempts to predict what is difficult to accurately predict. No one has a real grasp about how far and deeply do the auto industry’s tentacles reach into every aspect of American life. So who really knows what shall be the real consequences of the failure of the Big Three on the worsening economy?
The Senate Dixiecans blithely throwing the Big Three into bankruptcy are motivated, not by ultra conservative philosophies, but by the largess contributions from foreign auto makers with factories in their states, and by their decades-old, deeply ingrained anti-union and blue collar intolerance. They don't really give a damn that bankruptcy isn’t a means to an end, it is the end.
the story, although not in depth,, does indicate the many, including some not usually mentioned, parts of the economy upon which the auto industry has financial implications and impact. some sources have ties to the industry and mention factors which could fall with the industry while others point out possible negative effects of the government loan package.
Not the most balanced picture of the current debate to bail out Detroit. While Ms. Zagaroli does get a great number of sources for this article, some statements from groups who are unabashedly pro-bail out are quoted without a grain of salt. For example, the author writes, "Experts say ...failure of these companies could affect national security." But she then goes on to explain that the expert in question is a former MI Senator, and his argument is that bankrupt part suppliers may not be able to supply defense contractors; this scenario seems a few steps below a national security threat, as suggested in Ms. Zagaroli's summary. However, the fact that she included the full quote so that we could come to that conclusion is ... More »
A glimpse into how many other areas of the economy the auto industry effects (and the examples presented here are certainly not definitive).
I wouldn't call it great journalism. It is a common human interest story, but despite what some arrogant and secure people might think, it accurately depicts and predicts consequences of a massive Big 3 stroke. Dire predictions seldom fully materialize, but it is good to be prepared for what might happen.
The auto companies are like an old man who ate burgers all his life and now is suffering from arteriosclerosis. Health insurance and pensions are like plaque in their arteries, threatening a major stroke. The foreign companies never had to deal with the dawn of health insurance or the labor movement of the thirties. It's easy for the younger arugula-eating folks to heap derision on the old man. He can't even explain what got him into this shape. The Big 3 need intensive care, ... More »
Economies act very much like ecologies. Mammals were around but needed the Dinosaurs to be wiped out before they could take over. The wiping out of the "big three" will let the hybrids and electrics take over. With the competition due to hybrids and electrics being sourced from many different countries, the manufacturers will have to give us the car we want and not the car they think we should have. At a stroke, a major source of carbon dioxide production will be eleiminated. ... More »
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