when the Big 3 automakers were being interviewed, they all sounded so desperate. But when questioned about how they got to the meeting, they all came in private jets. Now they are driving up in hybrid vehicles. but they are also saying, “If we are turned down, there are other things we can do.” Well, before they hit up the Govt. for a bailout, they should exhaust every other avenue. Unless they want me and everybody else in this country as major stockholders. I think they thought it was free money.

I think that if any of the 3 start to go downhill, someone or some company will buy them up, they could split up like the oil companies did many years ago. It might be scarey for awhile, but if they don’t have a plan, and they have other possibilities, I bet nothing bad happens to them.

I believe with the millions of job lossess this year, the financially draining war, the millions of homes in foreclosures, the thousands of business bankruptcies we are already heading into a depression and the loss of the big three will propell us there a bit quicker. I’d like to send a huge thank you card to Bush and company (his republican cronies) for ruining this country, do you have their addresses?

Isn’t the automakers’ bailout a perfect time to stipulate that U.S. automakers begin to convert their commercial and personal trucks and vans to natural gas combustible engines. Would that not kill 2 birds with one stone? We help keep these companies afloat while also trying to accomplish energy independence? If not then let’s let survival of the fittest happen. Everything is cyclical.

Doesn’t matter if one or all three go belly-up. We’re at the beginning of the Greater Depression. This country has had it. We’re doomed and there’s nothing anyone can do about it. In a year or two from now, the world will look like “Mad Max.”

Absolutely not, but I am depressed when I think about the outrageous prices of poor quality America cars being constantly built.

James Michael Collins
Colorado Springs, CO

maybe not a depression but it will be depression for a large number of Americans. You can not work out of a recession if you reduce the amount of income (Taxes) coming in. If this loan is written up like the former Chrysler Loan than everyone will win and the Auto Industry can be dragged, kicking and screaming, into the 21st Century.

Absolutely! America is on the brink of a Depression now… After all, it took them almost a year to admit to Recession! The Wall Street boys and Big Banks got a bailout without questions. Why is it that government is making it seem like the working class can be thrown to the sharks? If we, the taxpayers, can bailout out Wall Street and the Big Banks - then by God we should help the auto manufacturers, their devoted workers, not to mention all those affiliated with the auto industry. I say, if Washington doesn’t approve a package for the auto industry, then Americans need to throw all the Washington politicians out… not wait to vote them out - Throw them out!

Last I checked we were in a depression. The problem is where we want to be in 5 years, talking about bailout number 10 or bite the bullet, rebuild these companies and retrain their employees for the new economy. It was done once, very quick, remember tanks and WW2.

I don’t know… I have never owned an American made car because I have never found the same quality as I have found in an import. I think if there is going to be a depression it’s going to happen anyway - with or without a bailout for the American auto industry.

Put another “3 MILLION” out of work? Absolutely a depression.

Jack you’re great! Yes, Bail’m'out. The BIG Three has put America and the world on the map. They have done so much for the richness of the American people. The Tax money that they have generated for the Governments is astounding and the run offs from their products has kept many Americans working for years. Yes, Bail them out.

Yes

It’s serious. This almost reminds me of the airline situation a couple of years ago. Maybe automakers should look at changes made then by companies like American Airlines and devise a real plan.
jamie, st charles mo

A depression will happen when it needs to happen. It has nothing to do with bailing out any one of these companies. It has to do with a correction in the economy. There is an imbalance in the system. The automakers can’t do much If working Americans don’t have the money to afford the vehicles

Dartmouth, MA

We lost AMC and we lost Oldsmobile (yes a GM division) with nary a goodbye wave. If the products made by the big 3 were sorely needed, wouldn’t the loss of one or more of these manufacturers cause an economic vacumn that would provide an opportunity for someone else to move into that market segment? Let’s not forget this is Capitalism working here!! Do we let it work, or do we prop it up in an artificial way?

That’s what they’d like us to believe Jack, but come on, didn’t we go through this same thing in the 70’s, and they were supposed to start manufacturing fuel efficient vehicles? What happened to that?

I still don’t think they’ll go under if we don’t give them the money, they need to do what everyone else does, tighten your belt, cut everything you can, and start all over again. Also replace the upper management completely in all three with younger, brighter minds. It shouldn’t be too hard to find anyone smarter than those guys……

Jack

Why all this concern about American companies closing their doors. This has been going on in this country for 20 years. Lot’s of people have lost their jobs unnoticed. The truth is it’s the last Industry of day’s past. A gleaming example that all was well in America. The truth has reared it’s ugly head….

yes for the auto workers most of us are already there

I don’t think that the loss of any one of the Big Three auto makers will lead to a depression. It will mean jobs will be lost, which will have an effect on the economy, but cars will still need servicing and spare parts. And, there will still be a market for used cars and used car salesmen. The challenge will be finding new jobs for the unemployed.

If Ford or GM go down, the answer is yes. However, I believe that we are going into a depression anyway. And this is the reason why. We will never trust Wall Street or our financial institutions ever again. The only way out, is to change the entire system, and jail the scumbags.

Is anyone else embarrassed by the auto union’s unbelievable contract for their workers? Does any other company in the U.S. pay former employees (not CEO’s) 80% once they are let go? No wonder the automakers are about to go under. Let’s merge them all into one car maker and throw away all the excesses and start fresh. Maybe, for the first time ever, I might consider buying an American car.

Since the “big three” automakers have far more capacity than customers, the loss of any one of them would actually strengthen the position of the remaining two. Because the fixed costs for plant, equipment, and tooling are so high for automobile manufacturing, the companies lose money at a geometric rate when sales fall below their breakeven point. Higher sales volume is just about the only way to cover fixed costs to make a profit.

Jack its like having a surgery where the chances are 50-50 if you dont you will die and you will you still might die……either now or later but you have to do it.

I do not believe that the loss of Chrysler would do substantial damage, but both GM and Ford would tumble this already depressed economy down that final slide. With over 20,000 job eliminations announced today, mine included, it seems that “Any link broke is the one that will break the camels back!!!”

Jack, the only thing I keep hearing is fear. It is fear that led us to the Iraq war. It is fear that led us to this huge bailout of Wall Street. It is fear that has us throwing money at every company coming by asking for a bailout. I have not heard one person on Capitol Hill, I have not heard one person in the White House, nor have I heard one person in the media ask, why the fear? We need to just take a breath here, figure out a plan and execute it in a concise and measured fashion. Right now, it is free money at the Washington bailout store.

Jack, we’re at the pearly gates of a Depression already. The crash of the Big three will just help to ‘expedite’ the process. Soon we’ll also see inventories accumulate at the ports, mainly with European and Japanese imports. Bottom line, vehicles will eventually have to sell at one third of the prices we’ve been used to paying. We need a great big world war, retool the factories to make tanks and weapons, kill off the excess and start new again.

Jack, I’m not an economist which means I have some common sense and have studied history. In my opinion, no the failure of one or all of the auto makers will not cause a depression. It will mean that more people will buy cars that are smaller and are more reliable, more fuel efficient as well as less expensive. Now as far as the future, I believe that we are headed towards being a third world country, maybe not in my life time but in my grandkids because we are losing too many manufacturing jobs to China and India.

Let’s merge the big 3 into one U.S. car maker. Start fresh with all the good ideas and scrap the old, tired ones. Maybe in a few years I might consider purchasing an American made car for once.
Chatham, New Jersey

Jack,

Most assuredly yes! It will create higher unemployment and more loss of home and who knows what else to follow. However, like the automakers and autoworkers, they are not the only ones that are feeling the depression. But they do make up a great percentage of the workfare and this country needs them. Hopefully they will do the right thing and agree to a paycut themselves as their situation could be alot worse. Half of something is better than a whole lot of nothing!

Daniel Ambrose,
Atlanta, GA

I believe the automaker bailout will inevitably cause an even more devastating financial crisis regarding the economy. I don’t think however it will lead to a “Depression”.

I doubt it. Industry people like to point out that car sales make up a substantial portion of retail sales; problem with this point is that foreign car companies and surviving domestics make up the bulk of US sales anyway.

When you add the job losses and closed businesses to what’s happening now, it would be disastrous (and this is coming from someone who’s never owned an American car). I think they get it now, and should be given a chance to get it right. Unlike the financial gurus who got us into this mess, the Detroit CEOs admit they made mistakes and are willing to learn from them. Mistakes are an important learning tool. And I think we’re crazy and short-sighted if we don’t give them a chance.

Jack I don’t think the loss of any one of the three auto companies would by itself cause a depression, however it would certainly be another brick building the road to one. The other half of this question is will a bailout of the auto companies prevent a depression at this point? Or will it even delay the inevitable failure of these companies?

Yes it will, BUT of course this can be prevented if only BIG OIL would step in and bail them out. Last time i checked cars ran on gas and Big Oil had record profits this year. It makes sense. Big Oil bails out auto industry and American cars will keep running on gas. Every body wins right?

The loss of the auto industry will not lead to a depression. We are already in a depression (economists will make that pronouncement a year from now!) and that has led to the loss of the auto industry - along with management blunders, of course.

Not if those companies are converted into other businesses that keep people employed at a decent wage. Lets convert those factories into green energy companies that will benefit all of mankind and not just the wealthy auto executives. A car is nothing but a money pit. It always requires maintenance and burns some type of energy. Solar panels and wind generators make clean energy for years and years with only minimal maintenance. It is an investment that keeps on giving.
Public transportation is cheaper better for the environment and will still be running tomorrow even if those auto plants close. We can not keep doing what we have been doing or the future looks bleak.

The air of change has taken hold here in the US and change will be difficult and trying for the industry. I think the president of Ford should lead this effort since he helped lead the restructuring of the aerospace industry while at Boeing. There are very talented people in the industry who just needs a leader with the vision and guts to set it on the right path.
Dan
West Bloomfield, Mi.

Bailing out the automakers so they can create more cars that we cannot buy. They can invest in new technology but what will happen to the dozens of cars sitting at the dealers. The money they get will not be used to fix anything, they need to be restructed. An idea is to take back all the cars that have not sold, and create jobs for their employees by using them to tear apart the cars the world population doesn’t need. They need to invest in cleaning up their mess, rather than investing in new technology that will be overpriced. All in all everything is failing due to the demand in GREED. No one wants to take a loss.

Jack,
Is it only a coincidence that the only car makers in trouble are unionized?
Had it been Toyota or Nissan who were in trouble, we would not even have given them a split second of a thought. They employ several hundred of thousands of people too in the US.

Maybe one consession we should demand is to eliminate unions from companies we bail out. If we don’t do that, the car makers will remain in trouble and will have to come back for more.

The same goes for the airlines. I have not heard Southwest Airlines asking for any government bail out.

Niels
Missouri

Jack,
It most certainly could. And, this will even be worse than the great
depression, as when that happened we manufactured everything
here in the United States, from tooth brushes to automobiles. There
were jobs out there to be eventually found. We did not import oil,
and we did not owe billions to foreign countries.We did not have
the largest deficit in history.
Remember over recent years our so called financial experts telling
us there could never be another despression due to the checks
and balances. Wonder what happened to them??

It is not looking too rosy. With the trickle down effect on the suppliers and all the other smaller companies that make parts and such they will lay off their workers and America is becoming what China used to be a third world country. It saddens me to think about how great our nation was in 2000 before Bush and company took office.

Yes Jack, But let’s put the blame where it really should be. This mess we are in did not start until the greed got out of hand on Wall Street. Yet, the government gave them money to get out of the problems they created for themselves and the American home buyer. People can’t buy cars if the loan sharks on Wall Street are sucking them dry. How do you shut down manufacturing while greedy investers get help for the mess they made for everyone else? And while we are at it, see if the Congress and the Senate will work for what they are worth. $1.00 a year sounds right to me. FRED LIVINGSTON, AL

Instead of BIG 3 asking money to the goverment either for bailout or as a loan, they should be asking BIG OIL for it. After all they (BIG 3) had been working for BIG OIL during the last 30 to 40 year. Now, while BIG 3 is in trouble BIG OIL had posted their biggest profits in our faces and in front of this worlwide economy situation. They deserve each other. Oh come on!!! Let’s talk greediness!!!

Some economists say the loss of one could lead to the loss of the others. But some say that if one or more of them goes under they can come out of bankruptcy leaner and stronger. The real question is do we want to take a risk as to which result is correct.

I don’t know that anyone can say for certain that it would through us into a depression, but it would definitely put us one step closer. The automobile crisis isn’t just a problem that effects just “the big three.” There are millions of people’s lives either directly or indirectly connected. If the auto industry goes under, it will start an avalanche of related failures; more unemeployment, more forclosures, more bankruptcies, more cutbacks of essential services. The snowball effect will make any hopes of a strong ecomonic recovery unlikely for any time soon.

Not a true financial depression, but a real “Depression” for those of us (millions around the world) that bought good GM products.

We have owned 5 GM vehicles since 85 and all were excellent maintenance free and our current(Buick Ronduve) is by far the best….A full size SUV that gets 23 mpg all around driving.

If GM goes down we and millions more will be stuck with the equivelant of an “Edsel”. No spare parts and no market for your used vehicle.

What company is next to ask for a bailout? Soon I will be working for free….we are as doomed as doomed can be.

I don’t know if it will send our Country into a depression Jack.
But I’d be willing to bet the thousand’s of hard working people that lose their job, and their families that depend on them, will be very depressed!

Recession? Depression? Who really agrees on an exact definition for these? The old joke about it’s a recession when your neighbor looses their job vs. it’s a depression if I loose my job is as good as any definition. So it will be a depression for 3 million more Americans if the Big 3 all fail.

It may not, by itself, lead to a depression but in conjunction with all of the other problems with the economy it could certainly move us closer. It would result in the loss, directly and indirectly, of hundreds of thousands of jobs. The country just cannot afford that kind of job loss in one fell swoop without catastrophic results.

Unfortunately yes. It would cost far more in social security, loss of taxes and lack of consumer spending than the $34B currently being asked for.

It is a problem because the executives are so inept. What is needed is a realistic plan to keep afloat combined with a vision for becoming the world leader in green technology that would make Detroit the leading inovators in the world. Unfortunately all that is being offered is job cuts!

When Michael Moore, and even I, can come up with a better plan than the CEO’s are presenting then we are in serious trouble!

Don’t you believe that putting all the auto makers employees out on the street along withthose working in businesses that support the auto industry will cause a depression? How about the fact that the auto industry is a major player in defense? If you really want the auto industry to heal itself mention the word “Nationalize” several times during the Congressional hearings.

Jack, the only depression I will feel is the one that will be caused by the bailout. Do not give these morons another cent!!!

No. It’s like the “sky will fall, if I don’t get my bailout”! Too much fear building up over this bailout of whoever thinks that they need it. Those that feel that they are in trouble, should restructure their companies and cut the spending!

A loss of only one of the Big 3 would most likely lead to a deeper and longer recession. If all of them go under,that’s when depression is possible. Many ancillary businesses are tied to the auto industry and millions of jobs.

we are ready at a depression everyday hearing numberous job losses since the iraq war began..the big ceos want the autoworkers to cut their retirement funds ( who are making the parts everyday) more than 20 years..why should they take a hugh scarifice of their hard earned money to take care of their families?..the big ceos should cut their salaries, cut bonuses, and cut old management jerks who are giving the american people old ideas instead using new ideas…china,india, and other countries are taking our jobs for manufacturing,computer industry etc..Is this economic depression going to stop for good? all americans are fed up with it now!

If anyone in their right mind thinks that the fall of the Auto industry closing its’ doors will have little affect on the nations’ economy has their head in the sand! This is not the first time the banks have been bailed out. They and mortgage companies are responsible for this mess. The only thing you have to do is study the industry, and the industries that are tied the Auto companies. Everybody that has a job is saying let them fall on their faces. When they close their doors ask yourself when do you think I’ll lose mine? The government of Japan help their Aut companies and other counttries have as well. We have lost a lot of jobs in this country that will never return. Let’s not lose these jobs. We have a Ford Focus and it’s a great car! Be careful for what you wish for, it might come to hurt you and your familly. Save the Auto industry!

It depends. If they go into bankruptcy and restructure they come out leaner with a chance to return to profitability. The country has to be prepared for the ripple effect of the lost jobs but they also have to recognize that the auto industry has been bloated for years.

The only sure thing is the government can’t keep bailing them out I can’t afford it! Maybe I should form a company and ask for a bailout, LOL. Kinda like the scenario from the movie The Mouse that Roared; declare war on the US, lose and apply for foreign aid.

Of course it will, Jack. We’re talking about MILLIONS of US jobs when the ripple effect is considered. All of the people saying that if one or more of our auto makers fail everyone can just drive a foreign made car and everything will be great are ignorant. Think of all the jobs that will be lost and the lost revenue, not to mention how much more money we will be injecting into foreign economies. It’s time to reinvest in America.

Jack - By every measure, human and otherwise, the loss of the 3 Automakers will signal the decline of American Civilization as we know it. Therefore the answer is yes. Millions of jobs lost will severely damage the average american an lead to another depression.

I don’t believe that it will! What will lead us to a depression is that the government keeps GIVING money away with no oversight, transparency, and the real knoweledge that they are really stealing that money, the government gives Mexico money to fight the drug cartels, yet it’s costing us a lot of money to keep the border patrols in prison for doing the job of protecting us from those same drug cartels…hmmm..yes that makes since to any normal thinking american…and the depression will come if they don’t bail out the people who really drive this countries economy…US the little people…main street…the so called middle class that I think is now “middle poor” …Jack, I love you by the way…you’re so real!

Not for Honda and Toyota

yes, however what I don’t understand is the huge bailout to Wall Street and the big banks with seemingly little if any interogation, while the Big 3 have to jump through hoops for a small fraction of the Wall Street bailout.
In support of the big 3, I drive a nine year old Camaro, which runs like a top at 260,000 kilometres and counting, still gets 25 miles to the gallon. Hmmm, of course it was made in Canada………..

Writing from Kingsville, Ontario, Canada

I’m tired of our industry leaders scaring me into making a decision. The losers in this auto industry financial crisis will be the workers. There will be job losses with or without a bailout. I would like to see a pre-chapter 11 plan worked out and all of the CEO’s and their high paid excutives dismissed from their jobs. The thought that no one can run these companies other than the industry leaders we have is just not true. We can find competent leaders from our diverse population and give them a fair wage and lets get the job done.

Jack,
Seeing as how thank to the Unions the car manufacturers are doingmuch better than most of the rest of the unemployeed people out there, the Union members will think that they are in a depression. I predict that if the BIG THREE bite the dust, the Germans (Volkswagen), Koreans (KIA) or the Japanese( Honda, Toyota etal) will snap them up and begin turning out the vehicles America needs instead of the vehicles the car industry tells us we need. All while paying reasonable wages, demanding good job performance and turning a profit. The Unions served us well but it is time they went the way of Jimmy Hoffa.

No…it won’t lead to a Depression because our government with its limitless money will bail them out. Does anyone else see the irony? We want to bailout the automakers so we don’t lose more American jobs, using money we are borrowing from China. Wow. The fact is Honda and Toyota simply do it better…no Union workers. I’m not against unions but I am against how they take advantage of the system. I would love to know if I got fired I would still retain 95% of my salary. Maybe they were built in a way that led to the foundation of the Middle Class but next to nothing about that union today reflects the current state of it. Simply stated, I lose my job tomorrow, I get $450 a week from Unemployment.

I worked in the steel mills in Pittburgh back in the early eighties. A regional depression occured, with unemployment in the area around 23% when the bottom fell out the steel industry. That ’s why it was called the Rust Belt. No bailout then, whole towns were devastated. I survived and have moved on. The economy and the american people are resilient.. It changed the face of Pittsburgh for good. We will survive the loss of some of the auto industry and move on and possibly come out better than before.

Of Course it will.

Can the USA handle more unemployed workers?

There is not alot of job creation…..so what are these people that will lose there jobs, to do? They will just join so many other American’s out of work with no jobs and no prospects.

It is so sad.

Letting the auto comapnies fail will send a signal that businesses had better keep an eye on what consumers want to buy and not look for handouts after bad business decisions that should not have been made.

Given their track record, does anyone really think the Big Three could manage the money they are asking taxpayers for?

I didn’t think so.

If we go into a depression, it won’t merely be the auto industry failures that caused it. Eight years of trickle-down economics will cause the depression. And once again, the Democrats have to clean up the mess and be accused of raising taxes to pay for Republican spending sprees.

unfortunately i would agree that no help would be too much for your economy to handle at this time, however i wonder why the big three were so short sighted. They should have been using there huge advertising dollars to get people thinking about smaller engines such as a turbo charged diesel engine that deliver torque and great fuel economy such as many european autos have, while they develop the hybrid or electric . Americans have always believed that bigger is better, is it a status thing? Because status and 2 dollars will get you a cup of coffee when your economy is on the brink! Good luck

As if all this bailout talk doesn’t make us depressed enough…get real!

Regardless of what happens to the big 3, we will go through another major depression within 3 years. History repeats because we don’t learn from it and with the loss of most of our manufacturing jobs to China and India we allowed this to happen or as it is perfectly said, we did it to ourselves. So Jack, tighten your seat belt and the one around your waist because times are going to get very tough.

There will be even more of a depression if we give these morons our tax dollars without a good plan for an all electric vehicle that is identical to the EV1 made in 1996. If we allow them to pour money into the volt which gets 100 miles less that the EV1 did then consumers will just go elsewhere. Currently France is building an air engine car that will go from Los Angeles to New York on one tank of fuel that is converted to air. Unless these companies get on board with this type of technology then we are going to lose these companies anyway because nobody is going to buy their product. And so far in the hearings today all I’ve heard is about hybrids. Hybrids as opposed to all electric or air is a sell out as the protesters so accurately shouted at the hearings today.

No it will not lead to a depression, but it will lead people to wonder why the wealthy companys allways gets help from the government,
when the a normal person working two jobs can never get a bail out
and small things in life. What the auto industry needs to do is put every vechile on sale for half price. I bet then all sells will go threw the ruff. Instead of giving them money they will never be able to spend in this lifetime. Twenty four million a year for one person is just a shame, but the poor needs to pay for them to stay rich. America is getting backward, everyday and needs smart people to operate the country. Need stupid rich people who don’t know about struggle…

Yes, this will be the start of complete economic failure in the world. The global greed and the lack of smart brains in both government and business have caused this problem.

Did the loss of the slave industry cause the country to fold up and go back to Europe in the 19th century? That was a huge economic blow to the South along with the devastating effects of the Civil War. We survived that, I think we can survive these overpaid, bloated United Auto Worker jobs going away.

When people around the world start buying these new air engine cars made in France next year these three stooges from the oil industry(GM, Ford, Chrylser) wont stand a chance at keeping their companies afloat. So let them go bankrupt now before we lose more tax dollars to bailout them out when they are going in that direction anyway.

So what ! If we stay on this bumpy road, potholes are all we can see for miles. Left turn I say, left turn.

Jack –
What good does it do to give the automakers more money to build
more cars and increase their inventory when people don’t have the
money to buy the cars and can’t get credit?
Lois Camp
Birmingham, Al

I would be greater than the depression. It would symbolize the failure of our economy, political system and way of life.

NO loss of one of the now “lesser” three will be a blessed event. They will emerge from their Chapter 11 filing hopefully gaining some wisdom into what it means to run a company in a manner that is focused on the long term and not on a short term basis designed to maximize annual bonuses. They will learn how to effectively deal with an employee base that has lost its work ethic. They will learn that when they do away with thousands of American jobs by offshore sourcing, that the American people have a memory of their actiions. Now is the time when America MUST develop a LONG term strategy and give up the concept of quick short term gains.

Jack, we are on a downward spiral and we are sitting on the edge of disastrous and catastrophic. The difference will be whether our automotive industry survives. Our lawmakers need to take immediate action to stave off catastrophe and hopefully keep us from plunging into a deep depression. I know it is unpopular, but something needs to be done to help our automakers ASAP! We are already up the creek, don’t take away our last paddle.

Josh in Maryland

No one is telling these auto CEO’s the truth-this is the 21st century. Their designs are from the 20th century and are obsolete. Like the stagecoach. Kiss them goodbye and move on.

Jack,

Depression? Well, the Big Three CEOs will certainly be bummed if they don’t get the bailout. I really hope there’s a reasonable way to save the auto industry, not the executives, mind you, just the industry and the folks who do the real work. The auto industry is the baby, the execs are the bathwater. Let’s not throw them both out.

Jim
Reno, Nevada

Instead of giving the auto makers our money, why don’t we give them our business? Why doesn’t the government order 1 million plug-in, CNG or hybrid cars for all government offices and agencies. Put them to work!

hi jack
yes if the big 3 go under alot of workers will be affected,parts companys,truckers,train transport,ads to pay for news media ,trade overseas and most of all unemployment compinsation will be sky high,people will not be able to pay bills or send their kids to college,alot will happen and we will all have to drive foreign cars.
clearwater,fl

Yes it will, but I believe that we are already in one. Up until the Great Depression, all economic pull backs were called depressions. The term recession was coined to differentiate anything less significant. We are now headed into another great depression because we basically stopped making stuff, AKA adding value, and now export cardboard to China in exchange for stuff we no longer make and or can afford to buy! So much for the much vaunted ’service economy.’

NO I ,don’t think so

If 3 million jobs are actually at stake, it would seem the word depression could be used. Unemployment is over 6% now, I don’t know what percent it would go to. Seems curious to me that in only two weeks ago the auto makers didn’t have a plan and they whipped this one up. Hmmm, seems they are trying to sell the sizzle.

Not anymore. Most everybody is already depressed about the state of the economy.

Bob writing from Paris, France

Jack,

No, not a depression, but a restructuring in the auto industry. The loss of any one of the Big 3 automakers will force a consolidation in an industry that has needed a shakeup for years. As such, the two remaining North American automakers should pick up market share, thereby restrengthening their business and saving many jobs.

I hope that people will look at this in the big picture. How bad it would be with the loss of hundreds of thousands of jobs, not only the auto workers but all the businesses depending upon them. This is one industry that needs to be kept going, with changes. Certainly all the people depending on this industry (the main street folks) deserve help as well and maybe more than the banking institutions who have been taking advantage of the people for many years. A huge restructuring is needed in their case.

It would dig a deep hole in our economic and social fabric. We must take prudent steps to stem the current financial situation and set the agenda to come out stronger in the long run, Let’s remember the longer term paths we must take to assure our place in the world. Time flies even when you’re not having fun!

Bailing out the auto industry will not stop a depression, the only thing that can is a ‘fix’ to all things that’s choking the economy. A bailout doesn’t even gaurantee they won’t go under, unfortunately there will still be jobs lost.

Not at all. The financial crises the automakers are in right now is not the direct effect and result of the slowdown of the global economy. It is the fault of their bad management and the lack of forecasting market conditions and adapting to the global economy as well as the production of products competitive in the world markets.

Not just a depression but catastrophic for America.

Not only will we lose our largest manufacturing industry, but the service industries like hospitals, restaurants, bars, local electric and gas companies, community police and fire departments, retail outlets, and on and on.

The millions upon millions of persons affected will not be paying payroll or property taxes, not have health care, draining social services.

Until we can substitute this primary manufacturing with something else it cannot go down. Just think if everyone bought American, we would all be doing our part.

Jack, the bigger question is: what will become of the American manufacturing industry if we let them fall? Remember that what won World War II for the Allied nations was the immense power of American manufacturing.

Sure, let the companies die, and let some foreign automaker buy them out; then if we end up some day going to war with that foreign country, are they going to help out the American military by building our war materiel?

Um, no, I didn’t think so.

When I read polls, etc. where the question is “should we bail out the Big Three” there is always a huge NO.
I think people need to consider the repercussions of letting them die. There is more to it than just the auto industry….just think of all the business that depend on them. If we let them just fade away we’ll see unemployment, failing business, all across the board. It will destroy the US lives as we know it.

If the carmakers go down, you can kiss the recession goodbye and say welcome to depression. The loss of those jobs for the automakers and support industries would be a disaster. I just spent the past several hours watching the grilling of the CEO’s by congress and I believe that the industry will comply with any sanctions that Congress can come up with.

Another loss would be with the defense infrastructure. Who will build the tanks, APC’s and Hummers if they go under? Do we really want to rely on overseas automakers to build when the need arises?

Jack, I know its called a bailout, but I also think you call it a loan. Yes if they don’t get help we will see something bigger the the great depression. It looks like we would have more people out of work than the great depression. We bailout the cool cats on wall street and markets is down with all our retirement moneys almost gone. The big three need the bailout and the middle class need help also.
Tom
Boone, N C

We are in a depression, but isn’t it an oxymoron that the government is telling the auto industry what they need to do to keep their business? I mean, the government is being run in bigger and bigger debt every year so they make it bigger by giving away money to Wall Street with no strings attached then they make the auto industry jump through hoops and beg for a loan. They don’t listen to their constituents. People didn’t want a bailout for Wall Street , but they got it and Congrees doesn’t even know who got the money nor how much. The auto industry isn’t asking for free and clear money, they are asking for a loan. Chrysler did it before and paid the money back, before it was due with interest. I think these automakers brought much of this upon themselves, but I trust them with taxpayer money a lot more than Wall Street and their phony numbers.

The auto industry is so intertwined, I can’t imagine what would happen to this economy if one of these companies were to fail! Ford seems to be in best position, only wanting their part of the Bridge Loan as a line of credit if the current economic crisis continues but If GM or Chrysler went under the hurt would be felt everywhere. The effects of would not only be felt by the manufacturers. There are thousands of suppliers who supply products to more than one company, and there many dealers who sell more than one brand of cars.

Reorganization under the bankruptcy laws wouldn’t be the worst thing that could happen to the auto industry and I don’t think it would lead to a depression. (The real question is why they’re getting such a grilling in front of the Congress when the Wall Street money changers got shovelsful of cash no questions asked.)

The auto industry is so intertwined, I can’t imagine what would happen to this economy if one of these companies were to fail! Ford seems to be in best position, only wanting their part of the Bridge Loan as a line of credit if the current economic crisis continues but If GM or Chrysler went under the hurt would be felt everywhere. The effects of would not only be felt by the manufacturers. There are thousands of suppliers who supply products to more than one company, and there many dealers who sell more than one brand of cars.

Holly - Columbus, OH

Absolutely not ! This is the Capitalistic System at work. People are worried about Warranties on cars - do you realize how many companpies would love to pick those Warranties up? Come on, we need real men and women to deal with tough times.
Joanne Buck
Minnesota

YES!!!! We cannot afford to lose 1 in 10 jobs. That’s millions out of work. The government needs to bailout the auto industry. It pains me to say that. I’m so sick of these big corporations getting a pass & the rest of us can eat cake, but I understand the total impact now. I do wish the government would bailout the homeowners as well. There are too many people losing their jobs and homes.

It will not be that bad if it is handled properly. Chrysler should go Bye-Bye and both Ford and Chev. should find a way to join forces. Some means should be taken to bailout those stupid union contracts so the auto makers can compete on the world level.

It will be a depression to me if I can’t service my year old Saturn. If GM is not given a bridge loan or if they discontinue Saturn, how are all of us who “bought American” service our cars?

Jack, if one of the companies go down, there will be a domino effect. We’re on the brink of a Depression now. As an Autoworker, we have taken concessions for the last two contracts. We don’t make $70 an hour, and many of us our college educated. We take pride in our work, and make quality vehicles. When we get done working our shift, our body aches so bad you need help getting out of your car, or to get out of bed. Ford has 13 top safety vehicles this year. Buy American that might help. We pay a lot of money in taxes. If our manufacturing jobs disappear, so will our tax money. Cities will be in a budget crunch. Police, Fire, city services, gas stations, restaraunts, bars, party stores, will close. Schools and Hospitals will be effected, and homes will be foreclosed. My home will be one of them. This will affect people across the country, such as glass, steel workers, suppliers, and so on and so on. Depression, in a heart beat!

Jack, we are in a neo-depression right now: tolerable, albeit rising, unemployment and an intolerable number of dead end, serf-like, jobs. A classic depression is a market correction so long overdue it feels like catastrophe. If we don’t get a bankruptcy-catastrophe soon the taxpayers will boil like frogs (slowly and oblivious to the inevitable). I’m for getting the catastrophe over sooner rather than later.

My grandfathers did not suffer WWII so only a few could enjoy prosperity while the majority (and vast majority of younger Americans) fight over scraps. The “its who you know not what you know,” mentality needs radical electroshock therapy. If the big 3 can’t take care of themselves, then institutionalize them or let them die in the streets. The corporations have personhood and this is how we treat people in the USA–no special rights for corporations.

It probably will lead toward a much deeper recession. Sen. Corker had the Big 3 on the ropes and Sen. Dodd called him off. Who’s side is the committee on?

Bill (Georgia)

If the auto industry is so important why don’t the Ford heirs invest back some of their wealth? Why don’t the past and current auto executives and dealers invest back some of the fortunes they derived from the auto industry?

I say let the government match what they loan or invest back.

The give nada the auto companies get nada!

Not further than we are now!!

These guys had all the time in the world to not be where they are but choose to ride the system.

Let the auto market readjust itself period.

No wonder they need bailout money, the union pays workers that were “let go” 95% of their salaries, which are thousands and thousands of jobs. The bailout money is needed to pay for salaries of non-workers alone! What kind of depression is that?

We are headed into a depression regardless of what happens to the “Big 3″. We must act now to keep it short-lived. At the end of WW II Europe and Asia were in shambles. America used the Marshal Plan to rebuild their infrastructure. Our intervention in their economies was profound, not nickel and dime. That is what the U.S. needs now. We need to put a massive number of Americans to work rebuilding our infrastructure. We need to fire up our steel mills, build heavy machinery, fortify our power grid, beef up our military and police forces, and build more refineries and power plants. The list is great and so is our need. Big Business has failed us because their leaders are short-sighted, focused only on the immediate profit. Our government has failed us by letting Big Business make their decisions for them. That is the change that Obama is talking about.

No. GM needs to go through bankruptcy, and get rid of some of its long-term liabilities to survive without continual subsidies, a bitter pill but still a reality. It’s no longer competitive - that’s what bankruptcy is for. Airlines in bankruptcy still have mileage point programs, and we frequent flyers stay loyal believing our millions of miles have value despite Chapter 11. The same is true for GM etc. Propping up GM short-term will result in greater consumer concern about longevity than bankruptcy and restructuring. You cannot run away from reality and make false arguments forever. Why should my tax dollars get spent to delay the pain and the necessary?

I don’t think American is able to comprehend the fall out for letting the Big 3 fail. It is tunnel vision thinking. The tentacles of this industry are far reaching, way beyond just the auto companies, suppliers and dealerships. You will see many more businesses fail because more people will be jobless. You will see larger local and state coffers go down even more. You will see more people going to emergency rooms because even more people will be uninsured. It goes on and on. As the old saying goes “be careful what you wish for”. I think that is what we will all be saying.

It looks to me like the depression has led to the loss of the big 3 automakers. Well, their own stupidity may have had something to do with the loss, too. I still think, however, that whatever gap that is left by the demise of Corporate Greed, Inc. will be filled by somebody who wants to make and sell automobiles that make sense.

Hey Jack….instead of bailing them out, why not loan them the money and have the CEO’s and other executive big wigs make the payments each month out of their own mega million $$ salaries…or tell them to go talk to their oil buddies who have shown nothin but profit for several years…..sounds good to me…ya betcha!!!!

I believe that without a viable energy to fuel economy, transport, manufacturing, the U.S. is in for a depression whether the auto industry goes down or not. Cars are not the problem. JOBS are the problem.

Let’s forget about all this mambo jambo and forgive all the debts of the orinary citizen, be it mortgages, credit cards, student loans, etc. Let everybody start from a clean slate come january 20th, 2009. That way the people who allegedly are supposed to be helped get the money!

The Bush administration treated financial industry differently from automobile and other industries. The treatment implies prioritized measure of importances. I believe we need to follow the capitalism principle in order to have real capitalism. Temporarily fixes using socialism approach will continue to create problems for us.

Jack, I think failure of one or more of the the automakers (even as poorly as they manage the industry) will cause deeper economic problems (job losses, business failures, etc) throughout America in the companies that supply them. The recession will deepen if not move toward depression. Bail them out with these stipulations:

- They will be run by a “turn around” company or a Management team that knows how to run a company efficently & profitably and not by the current management. They all should be fired in my opinion.

- force them to develop & manufacture efficienct & better quality products.

America really needs keep manufacturing activities in this country or we will be dependent on China & India too in addition to the Middle East.

The next Great Depression, or Super Depression ( because we love excessive hype) is already in the infant stages. And history will prove that consumer greed and suicidal trade policies, fueled by political ambition, were the root causes. Although the auto industry itself is what we look to as the premier American corporate success model, it is also the poster boy for inept management and failed technology. This depression will happen not because Detroit failed, but because consumers preferred the bliss of ignorance and believed the fairy tale that their government was protecting their interests.

Yes, I don’t think there is any question about that outcome. I don’t think the government should be lack in it’s responsibility to the taxpayer. But, where were all of these question/concerns when it came to Wall Street companies. This auto company situation, to me, appears as a double standard to our congress.

The only thing we know for sure is that we don’t know. But if untold billions, or even trillions thrown at the financial sector did not free up the credit market, what will it take if we increase unemployment ,decrease consumption, increase foreclosures, and sink the housing market even further? We could be circling the drain while the economy eats itself.

Loss of one will almost certainly lead to loss of the other two as their suppliers are shared. I’m unsure that anything can stop us from falling into a depression given the current state of our economy but if we do fall into a depression only manufaturing will get us out with a reasonable standard of living so, for that reason, they should be bailed out. Demands should be tacked on so that they pull manufacturing back into the US again, though.

Look around you, Jack, we are already in a Depression.
Brownwood, Texas

I’d hate to find out the hard way.

We are headed for a Depression no matter how you slice it. This $34 billion will only be a start for what it will take to revive the American automakers. Detroit has waited too late to try and put out the cars that the American public wants and needs. Nothing makes me think that their new business models will work now. If the people leading these companies knew how to make a profit, they would have done it before getting down to one month before going bankrupt. No one bailed out other companies to save worker’s jobs. What makes the auto workers jobs sacred? Their legs can stand in the unemployment line just like the IT workers, textile workers, and manufacturing employees.

There seems to be a lot of optimists and a lot pessimists about The Big Three failure causing a depression. Unfortunately I’m one of the pessimists. If we do nothing, not only will the people in these huge corporations go under, but the ripple effect will cover the entire country from sea to shining sea. Countless millions more will lose their manufacturing jobs as a result of such a economic calamity. I don’t see how we can allow it to happen.

Jack
Why not ask Allan Greenspan he has all the answers, thats why our economy is in such good shape. I would not give these three amigos a dime.

It definitely could put us in a depression. 1 out of every 10 US jobs are related to the auto industry. We can’t afford to find out what that kind of increase in unemployment would do to our economy. While reports say that Ford’s the healthiest of the Big 3 and may not need the assistance, not providing these bridge loans will drag down the ENTIRE manufacturing industry.

Jack,

I think we might can stand if the smaller, Chrysler, were to go under. I think having either Ford or GM go under would probably send us right into a depression. Having more than one would put so many more people into the unemployment line that we would be in a depression for sure.

I’m curious to know just how many realize that these folks we are trying to bailout have some of the highest wages and greatest benifits available anywhere. How in the world does anyone think they are going to be able to continue this great setup and sell their product to some poor sap earning minimum wage? Let them go under, what’s the point in building cars that can’t be paid for. Sad but true.

If the GOP let’s our only big industry go Bankrupt & let millions of worker’s lose their jobs, who do they think is going to fund the unemployment & health care for these people. If we are in a recession now (which took 11 months for the GOP Adm. to admit) we will surely be in a Depression if this industry goes under. We will also have to bail out all the lenders to these companies, AGAIN! This is another political ploy by the GOP to let the foreign auto industries in their red states take over more American jobs!

YES!!! and YES!!!! The USA NEEDS a manufacturing base!!! IT is a necessity and possibly Ford and GM could merg into one–start making “smart” cars and resonably priced. I’m 64 and bought Fords all my life until 4 years ago when I purchased a KIA Sonata and have had NO trouble. 30 mpg and a 10 year 100,000 warranty. WHY oh WHY did GM or FORD not do this????? Car was reasonably priced–I’m a secretary making $20,000 and that is all I could aford and still have a warrentied car.

The FEDS by now should know that these auto makers are playing the same cards like finance giants. If there is no bail out the sky is going to come down on us. Actually it is better for the auto companies to go bankrupt and fix their home under the umbrella of bankruptcy court.

No, losing one automaker will not take us into a depression, but the ripple effect will. Many businesses in this country rely on the big 3 - from tire companies, to paint makers, to major television networks. If an automaker went down, it could be the beginning of a domino effect worse than the foreclosure crisis.

Depression? Mental or Economic? Once Bush is gone that should immediately improve our collective mental health and economy.

Seriously, I don’t think we can afford to let the Big 3 go down, nor can we allow them to continue business as usual. I just can’t believe their alleged predicament. Their Balance Sheets didn’t evaporate overnight. Methinks I smell some fat cat rats. Liar, liar, pants on fire!!!

Let them fail. Cars will continue to be manufactured by Companies that are able to exist without subsidies. These successful Companies will obsorb the market share of the failed “Big Three” and create jobs and opportunities for industries that previously served the “Big Three”.

When a grocery store fails, the same amount of food is sold. The employees of the former grocer go across the street and work for the more efficient organization.

The way we do business in this Country has changed. Long gone are the neighborhood Grocers, Hardware Stores and Pharmacies. They have been replaced with more efficient operations.

Bottom line Jack, Cars are not selling. So even if you dress up the auto makers and put lipstick on them, the cars still won’t sell and the automakers will go under anyways.

Jack, no depression at all! First, all overseas American Corporation should be forced to pay higher taxes, therefore this forces them to bring back the jobs to the USA. Secondly, those over paid High School diplomas at Detriot are always welcome to work for McDonalds.

Ana, Massachusetts

Do we really want to find out?

Depression will be for the CEO’s who will be losing their outrageous salaries and may have to work for a living like the rest of their employees. They still do not get it. They are only offering a 20-30% reduction in their salaries. Not much when you consider the millions they take home every year.

No, it will not. It is meddling by the Fed, and our government officials, that will lead us to a Depression. The first thing to do is disband the Fed, and go back to a dollar standard, then cut back on taxes for the next four years, until income and capital gains taxes are disappear. And bring back our the troops, ships, planes, back to the USA, and put them on the borders…

The oil and the auto companies were hand in hand when things were going well. Now, that things have gone sour, the auto people have turned to the American People for a bailout. Why can or do they not go to the oil companies for help.

This reminds me of a plaque in the living room of my parents’ home, that went something like this,

“When I did well, I saw you ever. When I did ill, I saw you never.”

If we lost all of the Big Three auto companies, I am sure it would lead to a depression. But the loss of just one or the absorption of all three auto companies into one, not so much.

The first new car I bought was in 1974 a Dodge. In the first year it had the transmission go out three times and the chrome fell off the bumper. Next new car was in 1977 a Datsun I drove it for 12 years with no problems. If the big 3 trigger a drepression they brought it on themselves.

No, it would be a blip in the market followed by an improved market because one of the surviving two would pick up its best assets and make better use of them. A minor pain followed by something better. The effects would be two major unions that would finally be willing to talk turkey and lead to dramatic modification in guarantees, medical, pension, and COLA administration, then changes in auto design, plant usage, distribution contracts, marketing strategy, etc. That is not to say that they might not need loan guarantees…… The federal govt should be paid first or deferred payments at a higher interest rate.

Yes, without question. The trickle down to dealerships and suppliers has already begun to rear it’s ugly head. I don’t believe our congressional leaders are very well versed in this matter, or they would have expressed concerns when the big three chose to ignore fuel efficiency in their vehicle design. The piper is waiting to be paid, unfortunately the taxpayers will have to foot the bill.

When the market crashes and big business goes bankrupt, prices fall and unemployent goes higher and higher I would call that a depression.
When the cost of goods go higher and higher and we are working but affraid to spend for a short time, I call that a recession.
I doubt our goverment knows the difference. They tell us it could take up 2014 before the economy corrects its self.
If the auto industry fails there will be someone there to pick up the pieces for a great price.

Bail them out, but only with some conditions. They need to stop making huge SUV’s that use so much gas. They need to look into alternative fuel cars and cars that are better for our environment and economical for the buyer.

Is that a chance we want to take?

Why doesn’t anyone ever talk about the 800lb ape in the room? If we continue to buy foreign products and send our dollars overseas then eventually we HAVE to be broke here!