big 3 and the news

[radrambler]

anybody else yelling at the t.v ?
im watching fox news. i cant watch the Clinton New Network.
nobody says hey the big 3 cant make **** if credit to everyday people isnt available......its how the business works.doesnt matter what anybody agrees to in changes of business model or u.a.w. gives in and drops some $
alot of good points are made by the comments on the news but they miss the point.
the true volume of people can no longer buy new cars because the auto industry and BANKS have to have credit to lend to make the industry work.WHICH ISNT GOING TO CHANGE FOR A WHILE.I SAY YEARS.
without credit moving they are going to spend our billions to survive for a little while and go under anyway and the saving of jobs and failure of companies doing business with the automakers will be another news story.
SAD ...SAD ..SAD....
i just wonder if you guys think the same about whats happening with the U.S. AUTOMAKERS ...

tom

[surreyboy]

the problem isnt the banks dont want to lend, they would love to lend, they just dont want to lend to people who walk away from their obligations and default on their payments.

[rwhite692]

Regardless of how we feel emotionally about the merits of any particular industry, the fact is that ANY company, in ANY industry that does not have cash reserves, and diminished access to credit, when faced with a huge decline in sales, is going to have major problems surviving.

The US automakers have been vulnerable to this scenario playing out for a long time. They used to have a war chest to fall back on, but have been "swimming naked" for years now. And the tide has gone out.

I really hope they do continue to get help from the government and investors, as the reformation is going to take years, not months. They will have to become smaller companies and will also need legislative help from the government in order to prevent the foreign transplants from continuing to have unfair tax advantages from the individual states.

[3SuperSports]

Interest rates need to increase. Why risk cash for next to nothing in return?

[radrambler]

the problem isnt the banks dont want to lend, they would love to lend, they just dont want to lend to people who walk away from their obligations and default on their payments.

....and thats why credit in this country isnt flowing in this country.
THANKS
you must have missed my point....
not to argue ...but thats has always been the case with lending.except where high risk loans are given..and thats the business those companies who lend that way are in...or were in....
MY POINT WAS THIS
...if credit isnt flowing in this country the automakers as well as other industries cant make money, no matter who they are .

nobody is talking about that on the NEWS........
automakers only make money based on LARGE # OF SALES that are mostly done via car loans.....if banks arent lending to anyone except the 700 plus score range .the automakers cant make the money they need to make it .
so govt loans to those compaines will just prolong the failure of those companies.then you have a bigger problem they gave away our tax money and the downsizing or lack of jobs because of failure will kill the economy
AND I DONT HEAR THIS ON THE NEWS.....I WAS WONDERING IF OTHERS HERE ARE MAD BECAUSE THEY ARENT REPORTING THIS .

MAYBE I SHOULDNT HAVE POSTED THIS ...i just hate to see the industry going in the toilet.....

TOM

[bigtyme1]

My therory is, give the money back to the taxes payers in large amounts and most people are going to buy new cars that are allready on the lots. Why is the big three concerned about production when they can't even sell what's on the lots? Get rid of SAAB, HUMMER, VOLVO MAZDA and go back to an all american made vehicle with todays technogliy. SAAB and HUMMER is a big looser for GM, SAAB it's self took a loss in the millions last year. and has really never made a profit since GM took them over.

[3SuperSports]

I saw on the news yesterday that there are a growing number of people who have stopped paying their mortgages (even though they can afford to) because they expect the government to step in and pay it for them.

[Fluid Power]

lending is the key issue for the sales. My friend has several dealerships here in Columbus, and he said 20-25% of the people cannot get financing. For the record, he owns GM, Ford, Toyota, Lexus, MB, and Caddy dealerships. So the no financing problem is across all brands. They sold 7 caddies in November!

How about tax rebates to people who buy a car from the Big 3? Just an idea....

[Jim Nilsen]

Interest rates need to increase. Why risk cash for next to nothing in return?

NOTHING IN RETURN ????????

When they raised the interest rates on the ARM loans and loan payments doubled and they raised the interest rates on the banks and they had their payments go beyond what they could pay and they raised the interest rates on credit cards and they lowered the available limit to make them look like a higher risk and raise there minimum payments all because they wanted to make believe that they were all a higher risk when there was no defaults in the loans or no missed payments it made it so the loans or payments could not be made and that is what started this mess.

Simple GREED that you want to condone!

If you lowered interest rates it would make overall payments lower and stimulate life into the economy and give people the ability to pay back.

Do you really believe that the people loaning money don't make enough in interest to make a living?
They are killing the economy and they know it. They are doing just hat you said taking from people more than they can afford just to crush them and steal property and other assets for less than they can sell it for to make a profit again on that. It is greed that got us here and more greed will not get us out. The whole housing and banking fall was based on your philosiphy.

Maybe they should raise all of your interest rates on what you owe just to make the point to you. Some interest rates doubled for some, what if your did? People with good credit had their credit reduced for no reason other than someone could.

Sorry for the flame but you better be careful about what you ask for or it just might kick you in the ass.

There is no blanket statement that give a good understanding of what is going on other than someone somewhere needs to go to jail for the fraud that escalated it all.

If you raise my interest rates for no reason other than greed you are part of the problem. In 5 years I have paid more than 50% of my house value in interest and you don't think they make enough? All of the ARM loans were stupid and wrong and the people who took them were stupid suckers, while some weren't able to pay and be good risk most were good and failed because of stupidity on their part and greed on the banks part. They took the peoples money and then made it impossible to pay double the payment and then took the houses and will sell them for a big profit ,not a loss. Very few areas actually were inflated beyond the value plus the payments made when it came to forclosures.

I hope it doesn't happen to you or anyone.

Lower interest rates and put a cap on them. If they were to lower the cap on credit card interest alone from 42% in some states and 36% in others the amount of available cash for the lower base consumer would be in the billions.

stop the GREED.
.

[Jim Nilsen]

I saw on the news yesterday that there are a growing number of people who have stopped paying their mortgages (even though they can afford to) because they expect the government to step in and pay it for them.


Most of this is bacause the banks don't want to refinance the ARM loans that raised their payments to double. These people were not a risk but are treated like one and they were stupid, YES VERY STUPID, to sign up for them but the banks are not treating them like they should and are wanting to steal the houses back and take all of the money paid and right now the bank can make the payments to their lender with the government bailout money they received. When you hear their stories you have to wonder who isn't listening and you know why they are walking away. I was totally appauled and in disbelief that the banks would do this but they are. I still can't believe that some haven't gone berserk and retaliated violently to the greed. There are people being pushed to the edge by greed. These people aren't all looking for the federal government to come in and pay for it. They are hoping that by not paying the federal government will step in and redo the ARM loans and do justice to the greedy bank that is in charge of them. These people just want to refinace and have the ability to pay and are just tired of the fact that they are being taken advantage of because of an ARM loan they can't get out of. It is sad that most don't see what is going on. Redo the ARM loans and the problem will be helped a lot. You have to really listen to these people stories to get an idea of what is happening. I couldn't believe it until I listened. I was as mad as hell about it too!!,when I heard they were walking away ,thinking that they were deadbeat people who had no pride or morals but they are just people being taken to the cleaners. It is the banks that have no morals and are proud of it ,it seems.

ARM loans should never have been legal to begin with since it was obvious that most could never pay the higher interest rate payments once they happened . most thought that after 2 to 4 years they could refinance but the banks beat them to the punch and made it impossible. Who do you think new that was going to happen?

This is the biggest land grab scam by the federal reserve and the world banks that has ever existed. Most don't see it that way because they are obscured by the media and their own anger.

I'll stop now, calming down, whew.

[Jim Nilsen]

Regardless of how we feel emotionally about the merits of any particular industry, the fact is that ANY company, in ANY industry that does not have cash reserves, and diminished access to credit, when faced with a huge decline in sales, is going to have major problems surviving.

The US automakers have been vulnerable to this scenario playing out for a long time. They used to have a war chest to fall back on, but have been "swimming naked" for years now. And the tide has gone out.

I really hope they do continue to get help from the government and investors, as the reformation is going to take years, not months. They will have to become smaller companies and will also need legislative help from the government in order to prevent the foreign transplants from continuing to have unfair tax advantages from the individual states.


Exactly

[Jim Nilsen]

anybody else yelling at the t.v ?
im watching fox news. i cant watch the Clinton New Network.
nobody says hey the big 3 cant make **** if credit to everyday people isnt available......its how the business works.doesnt matter what anybody agrees to in changes of business model or u.a.w. gives in and drops some $
alot of good points are made by the comments on the news but they miss the point.
the true volume of people can no longer buy new cars because the auto industry and BANKS have to have credit to lend to make the industry work.WHICH ISNT GOING TO CHANGE FOR A WHILE.I SAY YEARS.
without credit moving they are going to spend our billions to survive for a little while and go under anyway and the saving of jobs and failure of companies doing business with the automakers will be another news story.
SAD ...SAD ..SAD....
i just wonder if you guys think the same about whats happening with the U.S. AUTOMAKERS ...

tom

I agree and the money was given to lend and now they are holding on to it. It's a scam and we are being taken to the cleaners by fear ,lies and stupidity by the media,bankers and politicians

[3SuperSports]

Sorry. I was actually thinking about the prime rate. Go try to buy a CD for more than 3%. It aint easy.
You're right, the ARM's are rediculous and it's a scam to get people into something they can't afford. Too bad there aren't laws against such things.
I'm not too worried about the rates charged to me. I went with a fixed rate mortgage, I pay off my one credit card every month and we live below our means. Because a company I worked for went bankrupt a few years ago, I lost a large retirement fund. I still hope I can retire, but with the healthcare the way it is and where our social security system is going......maybe not.
What the banks charge customers and credit card company's can charge is a different story. I know.

I don't think our public education system is doing a good job of teaching kids what it really takes to make it in life. You have to spot scams for yourself and take responsibility for your actions. The government can't protect everybody from themselves.

[Jim Nilsen]

Sorry. I was actually thinking about the prime rate. Go try to buy a CD for more than 3%. It aint easy.
You're right, the ARM's are rediculous and it's a scam to get people into something they can't afford. Too bad there aren't laws against such things.
I'm not too worried about the rates charged to me. I went with a fixed rate mortgage, I pay off my one credit card every month and we live below our means. Because a company I worked for went bankrupt a few years ago, I lost a large retirement fund. I still hope I can retire, but with the healthcare the way it is and where our social security system is going......maybe not.
What the banks charge customers and credit card company's can charge is a different story. I know.

I don't think our public education system is doing a good job of teaching kids what it really takes to make it in life. You have to spot scams for yourself and take responsibility for your actions. The government can't protect everybody from themselves.

Ahhh yes the other interest rates. You are right about raising the investment rates for cd's and checking and any other interest rate that the banks use your money for investment. I was offered a new checking account from Citibank that would have given me 4.99% on my money and I couldn't believe it was true. Then I looked at the stipulations and found the negative side of it and it ruined the temptation for me. I would have been making more in interest than they charge me for my car payment from them, it is crazy to think of it. It also would have been crazy for me to do it after ereading the fine print. The charges for certain things in the account would have eaten up any money that was made over 1.9%. It was another scam that the underwriters should be put in jail for and the language made illegal.

We have all been hit at so many different angles that it is inconceivable to know them all and spot them.

You seem to have a good understanding of this and I hope that others get grip on it all before too long.

People need to have credit to buy new cars and if they don't get it the whole thing is a setup to print more debt and leave it in the hands of those who have been setting us up for a long time. the cars are collateral and if the cars are supposed to be saving us money in the long run from higher gas prices the ability to pay is there in the cost per mile which leaves the high mile cars as saving the most already for that owner so they can take less and the low mile cars more desireable if the people can't make the payments and they have to sell them. If they build the right cars and people buy the right cars with this money it could work. If the wrong cars are bought with the money it will also fail.

I wish them luck cause they really need it.

[Jim Nilsen]

I was listening to the news and then saw it on the cnn website and have seen it before and it is somewhat disturbing to me and wonder if it is to you?

Doesn't calling someone in charge of an American problem a CZAR seem a bit communistic and socialist ?

I'm not so sure I want CZARS running anything do you?

Just an observation.

Down with the car CZAR,down with the car CZAR............

[3SuperSports]

I have a feeling that's what made FORD say "never mind".