GM Government Bailout

Discussion in 'The Coffee Shop ~ Chit Chat' started by SilveradoBrett, Oct 16, 2008.

  1. SilveradoBrett

    SilveradoBrett Rockstar

    Has anyone else heard of the bailout that GM is receiving from the US government. The Government is going to loan out about $25 billion to GM in efforts to save the automotive industry. They are offering a 5% interest rate and must agree that most of the funding will go to the research of alternative fuels. Also last week GM stock prices dropped to around $4.00 a share! Ha anyone else heard about this, its part of the recession that the US economy is undergoing. Below you will find an article about the loans and the effect on the auto manufacturers of america. What does everyone think about this?

    http://www.bloggingstocks.com/2008/10/01/auto-industry-wants-bailout-for-bad-loans-what-the-heck/
     
    Last edited: Oct 16, 2008
  2. MWright936

    MWright936 Epic Member 5+ Years 1000 Posts

    I think the whole buy out thing was a waste. I understand the reasoning behind it, but it sure doesn't look like it's helped things. As I mentioned in another thread, it really grinds my gears when I hear news reports of company executives taking luxury vacations after they received their bail out money. It seems there should be some kind of reprocussions from something like that.

    As far as the article is concerned, I definitely agree that making it easier to get auto loans is completely stupid, considering one of the main reasons we got to this point was people getting loans for things they couldn't afford in the first place. It's all just a mess.
     
  3. SilveradoBrett

    SilveradoBrett Rockstar

    You have a very great point there. Loans in general have caused a lot of hurt on the countries economy. It will also only get worse with the way the market is hurting right now. More and more companies everyday are going under and people are losing their jobs and therefor the loan situation is going to get worse. I was folling the stock of GM today and it is up to a whooping $6.00 a share. If I was a risky man I would buy 100 shares and just sit it out until the economy stablized and then I would have made a good investment. There is no way that the country is going to let their main automanufacturers go under. They provide so many jobs in the US that it would be horrible to take that market away. What scares me the most is that America is giving out this bail money but we don;t have money to give out. Instead China is buying up the bonds and covering america debt. What if they wanted to cash them all in and get their money in the next couple of months? We would all be screwed! We are just not in a very good situation right now and all I can do is hope that whoever the next canidate is can make the change and pull us out of this instead of making the problems worse.
     
  4. adidasboy918

    adidasboy918 Epic Member 5+ Years 500 Posts

    i heard something a few days ago about the bail out and money but it was GM and Chrysler were talking about merging. And the wasn't sure about giving money to help this out because ford would bring it up and it wasn't fair to them.

    http://www.newsweek.com/id/163692
     
  5. MWright936

    MWright936 Epic Member 5+ Years 1000 Posts

    I heard about that the other day too! That would be interesting...
     
  6. SilveradoBrett

    SilveradoBrett Rockstar

    That would be interesting if they merged. Huh.... I wonder if they would make new models together? That would be some crazy engineering! I hadn't heard that yet, I will have to check it out. I thought that the actual bill that passed was going to give money to the big three manufactures (Ford, Chrysler and GM) but then I heard someone today talking that if you have a plant in america for a certain amount of time then you would be eligible. Since Honda has had a plant since the late 80's on american soil then they would be eligible too. I just heard that, I have no proof of that but I will keep you updated if I find a reliable source.
     
  7. Dan

    Dan Rockstar 100 Posts

    just think the perfect truck a gm truck with the inline cummins with the allison trans !!!
     
  8. SilveradoBrett

    SilveradoBrett Rockstar

    That truck would be sweet! Cummins? I think it would be better with a powerstroke and an allison, but I guess that just comes down to personal preference. Also I have driven alot of buses with cummins and they seem to have quite a few problems, we are talking about the little short buses. But we use them to go up in the mountains, so I can't really complain they have more than enough power to get you anywhere you want to go, but they just are maintance hungry little guys!
     

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