The $15 billion Big 3 bailout is expected to pass today. They’re just quibbling over details now, and the White House is expected to sign whatever Congress sends over. So, I wanted to give you some thoughts that have kind of been floating around the ….

rokemronnie on December 8, 2008 at 11:28 PM

It is called re-tooling. Which IS exactly how any viable company should be running.

Those companies have competent market analysts and management, given the directions of which way the wind blows, they know when/how to adjust.

They may have shut down some part of their manufacturing for un-popular models (incidnetally, unprofitable) this year. Next year when they roll out newer and better models that consumers want, you can bet those workers will be back in the assembly line.

None of the Big3 and union bosses know any of that. Instead, they RELY ON consumers’ incredible loyalty and being ‘American made’ for the past several years.

I predict the stock market is going to go down. then up. then down. then up. etc.

rbj on December 8, 2008 at 4:51 PM

All hail the widsom of our newest wiseman, rbj.

HAIL.

/which reminds me one of the Men In Black II scene.

GM had the first all-electric car — the EV1 — and it was manufactured IN LANSING, MICHIGAN! If GM had stuck with the EV1, they could have come out as the preeminent “green car” producer.

Ahh, yes, if only they had sold a car that no one wanted, they would be sitting pretty right now. Those dummies.

If you don’t agree with socialism and businesses that volunteer to submit to fascism then simply use your dollar vote.

Don’t buy any “American” cars. …

Dorvillian on December 8, 2008 at 10:33 PM

Great point. Americans have already voted on the bailout, by not buying more of the “detroit” cars.

I’m really surprised that companies haven’t noticed the effect that begging, literally BEGGING for money has on thier stock price. If you’re looking to invest, GM looks like a really bad buy. Ford, meanwhile, is looking better and better. At this point they’re saying “we don’t need a loan, but please help our sick, inept poor-planning brethren”.

I predict the stock market is going to go down. then up. then down. then up. etc.

rbj on December 8, 2008 at 4:51 PM

I look forward to seeing you on CNN, oh wise one!

There’s plenty of work available at the NON-union car plants in other states. Welcome to reality union bosses.

More bullshit. BMW is offering employees buyouts at their South Carolina plant that builds SUVs and sports cars. Mercedes is laying people off at Senator Shelby’s, R. Mercedes/Hyundai/Toyota/Honda, favorite SUV builder. Hyundai has cut production in Alabama, as has Honda. Apparently Detroit wasn’t the only one hitching their wagon to the SUV bubble.

If I had a dollar for every piece of arrant nonsense I’ve seen concerning the auto industry I could afford a Ferrari – another company, btw, that must be as stupidly run as the Detroit automakers since it just laid off 10% of its workforce after seeing sales decline about 85%. I guess that’s the UAW and Rick Wagoner’s fault too.

I wish I would have known about this and called in. I voted for Virg when he was up for Mayor, but he’s such a blowhard.

I would have NAILED him over GM and the EV1. GM had the first all-electric car — the EV1 — and it was manufactured IN LANSING, MICHIGAN! If GM had stuck with the EV1, they could have come out as the preeminent “green car” producer. Instead they went and pushed light trucks and SUVs, said the EV1 was a market failure (while never giving it a chance or even a small market share), and lost the “green” wars to Toyota and the Prius.

And now? GM is reducing its Lansing workforce. Oldsmobile is gone. So how the hell is bailing out GM “good” for the Lansing economy? They’re putting all of their poker chips on the Volt, when they had the freakin’ EV1 as it was! And it was LANSING made!

Ugh. His whole line of argument is so irritating.

i’m sick and tiured of youy folkks referring to schiff as “the guy who predicted” the financial meltdown.

that’s bs.

the cause was fannie mae and bush and greenspan and snow and mccain and even hagel ALL said that if fannie mae was left outta control it would cause a financial meltdown.

You’re an idiot.

Don’t buy any “American” cars. Hell, even if you don’t care about any of this stuff, you’ll get more from your money with a Japanese or German car – and it’s easy to find one made right here in the late great USA.

Re Schiff, this is true:

Gold is down, which he was saying to buy back in early summer when it was $1k/ounce, while also predicting massive Inflation for Fall 2008(which we’ve had Deflation instead).
I had exposure to foreign ETFs (something he deals in) and they tanked hard, but still feel that eventually he will be very right about metals. His forecast window is off, but his reasoning is sound.

rhodeymark on December 8, 2008 at 5:26 PM

Those of you that are thinking of trying some of Schiff’s strategies have to remember one thing: He is not short-term, but thinking medium to long term.

Don’t use his writings to in effect day trade between gold, USD, foreign stocks, etc. You will lose money trying to time it perfect just like stocks.

Phase in an amount each month over the next 12-24 months out of USD investments. Then watch as the dollar continues its long-term slide and you are more protected in your buying power.

Virg Bernero is a moron thug, incompetent as all hell and arrogant like you cannot believe.

benrand on December 8, 2008 at 9:50 PM

I had never even seen or heard of him before. But, I sure as heck thought he was some union/mob thug by his looks, mannerisms. You just confirmed it. Hope he doesn’t read HA and send one his ‘boys’ down here to convince me to unionize without a secret ballot.

I am not joking, two fo them here have been shuttered, left to rot…and I have a feeling he did it for kickback reasons. One of them is right next to campus, with a nice spot for more student housing.

He is a slimebag of the highest order.

CNN Anchor: Let me just say this – All big three CEOs are working for a dollar a year.

Peter Schiff: They’re overpaid.

Me: (LOL)

TightAggressive on December 8, 2008 at 5:44 PM

I laughed out loud. He was right on. My ex-wife’s family was a GM family. What an entitlement mentality. The UAW was good, and management bad.

I hate southeast MI with a passion, except the ex and my boy. His Catholic grammar school is an oasis amongst the desolation.

Michael Lewis’ “End of Wall Street’s Boom”