funkadelic101
Mothership Connection
Joined: 12/07/2002
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i was sayin that when i eat delicious dealership popcorn its so good i feel like i must b a rich man to enjoy such a great splendor so then i want to buy a humvee
bluflowmasterstreek is awfully mad fer bein' so rich.
im happy go lucky, so suk it bytch
All black labs look the same...
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yammrhammr
Apex, so fast you can coast thru the corners
Joined: 01/23/2003
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flowmaster wrote:you should know! used car salesman for a bankrupt company quite an accomplishment
i'm not a little coward hidin behind a keyboard, thats the first step to acomplishment, in case you ever decide to become a man.
yammrhammr says, "my Apex Mono suspension is race tested and bullet proof "
Gear crushers
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ZR900MAN
Cherrycreek snowgoers
Joined: 09/11/2008
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Some real simple economics lessons can be learned from this melt down of the American economy. UAW workers are not evil, just ill informed and a bit greedy.
Class envy is not going to solve the very real crisis that we face. If the ceo's of major corp.'s were to work for the same wage a line worker it would not save enough money to make difference. Granted it is bad press right now. It is not the wages of the existing workers that is killing unionized shops, it is the out of line and unrealistic benefits. These people are compensated at 200% to 300% more than other people with similar education and skill.
Trade wars never work, they only deepen the recesions that you hope they will end. After WW1 we had a similar situation to what we face now. The stock market had run up unrealisticly high, only to crash. The feds were medeling in the afairs of business under Hoover, who signed the Smoot-Halley tariff act which was designed to protect American workers from unfair trade. Other countries quikly retaliated which caused the oct. 1929 crash. Roosevelt was elected and brought unprecidented federal programs and regulations that caused the great depresion, along with the drought in the mid west and some other factors.
The point is that no federal bailout is going to work. it will only delay the inevitable. I am genuinly sorry that decent men and women who have worked in some pretty tough jobs for a lot of years are going to get hurt. But it cannot be avoided at this point.
Once again if we look to the 1920 to 1930 era in germany we can see what happens when a country tries to "print" its way out of financial problems. As a nation we have come full circle from the largest creditor nation on earth in 1970 to the largest debtor nation today. We cannot tax and spend nor bowrow and spend our way int prosperity.
The time for assigning blame to CEO's or unions has passed. It is time to get our shizz together and make the fiscally responsible decisions that are required.
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funkadelic101
Mothership Connection
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Pretty correct.
BUT, the act you speak of is the Smoot-Hawley act. And it was signed in after the stock market crash of 1929. So it didn't cause the crash, it caused the depression after the crash.
I remember people here saying the way to help US automakers is to put higher tariffs on foreign makes, which is the same answer today as what the S-H act was as well.
What caused the stock market crash of 1929 is much the same as what cause the mortgage crash of just this last year.
Most people buying stock in the 1920's were buying them "on margin" which meant, they were committing to buying stock with around 10% down, and letting a bank finance the rest. The market was rising so fast that people would take the interest hit from a bank loan to buy a stock and then sell it for profit and pay the banks back.
Does ANYONE see the parallels with the mortgage crisis here?
Well, cause when businesses were found to be basically not as profitable as they seemed and not really worth what people were investing into them, their stock prices fell.... And so all these people wanted out, but that meant they had to front REAL cash to get out, and the banks wanted their money... and then all a sudden everyone realized everyone was operating on next to zero capital.
So when home prices fell... people didnt want to pay a mortgage on a home that wasn't worth what they had to pay, so they bailed. If enough people bail, what can the bank do to hurt them? bankruptcy.
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flowmaster
Idaho
Joined: 10/04/2008
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so uneducated unskilled labor is worth $30.00 an hr. tell me another industry where unskilled uneducated labor makes $30.00-$40.00 an hr. I know people who went to college for 6 years and have a skill that make alot less than $30.00-$40.00 hour. My 11 yr old nephew could work an hourly job at GM Ford or chrysler.
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snoxraceteam
Upper Peninsula, Michigan
Joined: 10/01/2003
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The Detroit News
Job Bank pays workers not to work for years and years and years. Laid off autoworkers stay on payroll in job bank program and still receive income until retirement.
Each job bank employee cost the auto industry $130,000 per year. Currently Chrysler has 711, GM 1404, and Ford 1476 laid off U.S, Auto Workers still on job bank. These numbers are way down since the early retirement buy-outs a few years ago.
In 2007 it cost the US automakers 546 million dollars to pay people not to work
Retired autoworkers get pension almost equivalent to full pay.
The average Michigan automaker employee makes more than $100,000 per year.
GM has lost 21.3 billion dollars so far in 2008.
Business Week
Ford CEO Mullaly - 49 million total package, more than 24 million cash
GM CEO Wagoner - 24 million total package, about 6 million cash
Chrysler CEO unknown as Chrysler is a private company and they have not released any records but they have their hand out for bail-out money.
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ZR900MAN
Cherrycreek snowgoers
Joined: 09/11/2008
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You correctly identify the smoot hawley tarrif act as coming after the october ceash, it was june 17 1930. The point remains that raising tarrifs does not mitigate a recesion. Smoot hawley did raise tarrifs on more than 20,000 items.
There was also a run up in housing prices during the 1920's as the economy was described as "roaring". At that time banking laws allowed a bank to call your loan due even if you never missed a payment and were current with your loan. It was not the stock crash that killed the economy, it was the overreaction by government that deepened the problem that otherwise would have sorted itself out much quicker.
If America does not get over the idea that the government at all levels can solve all your problems not only will it bring us down but will crash the entire world. Ever heard of the dark ages after the fall of rome?
Remember it was the financial crisis of the 30's that brought us a charismatic leader in Germany even though Churchill and others were warning against it.
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