Comments on: The Detroit Three's slow trip back to Washington http://curiouscapitalist.blogs.time.com/2008/12/02/the-detroit-threes-slow-trip-back-to-washington/ Commentary on the economy, the markets, and business Sat, 28 Nov 2009 16:55:17 +0000 http://wordpress.com/ hourly 1 By: curmudgeon57 http://curiouscapitalist.blogs.time.com/2008/12/02/the-detroit-threes-slow-trip-back-to-washington/comment-page-1/#comment-12182 curmudgeon57 Wed, 03 Dec 2008 13:51:14 +0000 http://timecuriouscapitalist.wordpress.com/?p=3381#comment-12182 Justin, it's not clear if your colleague Mr. Saporito is tongue-in-cheek, serious, or some combination of both. Insofar as he may be serious, he is a fool. The corporate jet is a relic of a bygone era, a lesson that the Detroit Three CEOs have only recently learned. I fear that your colleague may also be such a relic. Justin, it's not clear if your colleague Mr. Saporito is tongue-in-cheek, serious, or some combination of both. Insofar as he may be serious, he is a fool. The corporate jet is a relic of a bygone era, a lesson that the Detroit Three CEOs have only recently learned. I fear that your colleague may also be such a relic.

]]> By: tomahldin http://curiouscapitalist.blogs.time.com/2008/12/02/the-detroit-threes-slow-trip-back-to-washington/comment-page-1/#comment-12176 tomahldin Tue, 02 Dec 2008 23:43:58 +0000 http://timecuriouscapitalist.wordpress.com/?p=3381#comment-12176 Buffett bought a 1934 Rolls Royce for 350 Dollars and rented it out for 35 dollars a day. By the time he graduated from high school at sixteen, Buffett had saved 6,000 dollars. Tom Ahldin Buffett bought a 1934 Rolls Royce for 350 Dollars and rented it out for 35 dollars a day. By the time he graduated from high school at sixteen, Buffett had saved 6,000 dollars.

Tom Ahldin

]]> By: markus64s http://curiouscapitalist.blogs.time.com/2008/12/02/the-detroit-threes-slow-trip-back-to-washington/comment-page-1/#comment-12174 markus64s Tue, 02 Dec 2008 22:59:45 +0000 http://timecuriouscapitalist.wordpress.com/?p=3381#comment-12174 I think "bryanfromhouston" hit the nail on the head. My concern is that a loan or bailout would postpone the inevitable. I'd like to be wrong about this. But "1kashab" may have inadvertently found a way to save Detroit... an all-woman workforce. Imagine the savings in labor costs! I think "bryanfromhouston" hit the nail on the head. My concern is that a loan or bailout would postpone the inevitable. I'd like to be wrong about this.

But "1kashab" may have inadvertently found a way to save Detroit... an all-woman workforce. Imagine the savings in labor costs!

]]> By: bryanfromhouston http://curiouscapitalist.blogs.time.com/2008/12/02/the-detroit-threes-slow-trip-back-to-washington/comment-page-1/#comment-12173 bryanfromhouston Tue, 02 Dec 2008 22:24:16 +0000 http://timecuriouscapitalist.wordpress.com/?p=3381#comment-12173 Justin, . This is all well and good, but Chris Isidore does (as usual) a great job in conveying the depth of the problem. The problem is the fact that we (just like housing) had an auto bubble. See here: http://money.cnn.com/2008/12/02/news/companies/automakers_plans/index.htm?postversion=2008120213 . Unfortunately, no amount of CEOs taking road trips in their latest hybrids, opting for $1 yearly salaries or pontificating about future models and sales will change this very significant fact. The only way to get out of a bubble is to reduce capacit and wait for demand to overcome supply until they are back in equilibrium. . There is no bailout short of a handout that will keep people employed in Detroit. And any bailout making more cars only prolongs the scenario of bringing supply and demand back into balance. This is the paradox of the bailout...it is welfare where the poor worker never regains control of their wealth making ability. Justin,
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This is all well and good, but Chris Isidore does (as usual) a great job in conveying the depth of the problem. The problem is the fact that we (just like housing) had an auto bubble. See here: http://money.cnn.com/2008/12/02/news/companies/automakers_plans/index.htm?postversion=2008120213
.
Unfortunately, no amount of CEOs taking road trips in their latest hybrids, opting for $1 yearly salaries or pontificating about future models and sales will change this very significant fact. The only way to get out of a bubble is to reduce capacit and wait for demand to overcome supply until they are back in equilibrium.
.
There is no bailout short of a handout that will keep people employed in Detroit. And any bailout making more cars only prolongs the scenario of bringing supply and demand back into balance. This is the paradox of the bailout...it is welfare where the poor worker never regains control of their wealth making ability.

]]> By: yogi http://curiouscapitalist.blogs.time.com/2008/12/02/the-detroit-threes-slow-trip-back-to-washington/comment-page-1/#comment-12172 yogi Tue, 02 Dec 2008 21:40:38 +0000 http://timecuriouscapitalist.wordpress.com/?p=3381#comment-12172 As horrible as it is to say, if any got into a crash in their car on the way to Washington, I think that alone would kill the company...well, I guess depending on how badly they were hurt and how well the safety features performed. - I also agree, the 1 buck salary is kind of pompous and absurd because you know they will still get millions in stock options. So while I suppose you can say they are spending money more wisely; instead of paying the CEO big bucks, paying a bunch of other engineers to design a better car is smart, its really just a drop in the bucket of whatever percentage of 25 billion they get. As horrible as it is to say, if any got into a crash in their car on the way to Washington, I think that alone would kill the company...well, I guess depending on how badly they were hurt and how well the safety features performed.
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I also agree, the 1 buck salary is kind of pompous and absurd because you know they will still get millions in stock options. So while I suppose you can say they are spending money more wisely; instead of paying the CEO big bucks, paying a bunch of other engineers to design a better car is smart, its really just a drop in the bucket of whatever percentage of 25 billion they get.

]]> By: 1kashab http://curiouscapitalist.blogs.time.com/2008/12/02/the-detroit-threes-slow-trip-back-to-washington/comment-page-1/#comment-12169 1kashab Tue, 02 Dec 2008 20:27:23 +0000 http://timecuriouscapitalist.wordpress.com/?p=3381#comment-12169 Now. just how many of us actually believe this will bring tears to the eyes of everyone and win the 'boys' their bailout? i mean, really! the 'boys' already have stashed their real money elsewhere so $1 salary is nothing more than well, for us women, $.57. go figgur. Now. just how many of us actually believe this will bring tears to the eyes of everyone and win the 'boys' their bailout? i mean, really! the 'boys' already have stashed their real money elsewhere so $1 salary is nothing more than well, for us women, $.57. go figgur.

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