Republicans: Not our fault

[Ravi]

The Republican leader, Senator Mitch McConnell of Kentucky, said: “We have had before us this whole question of the viability of the American automobile manufacturers. None of us want to see them go down, but very few of us had anything to do with the dilemma that they have created for themselves.”

http://www.nytimes.com/2008/12/12/business/12auto.html?scp=2&sq=senate gop&st=cse

Actually, it is in large part Congress's fault. I have my doubts that the auto companies would be in financial trouble if the economy wasn't in such bad shape. And the reason the economy is in such bad shape has a lot to do with policies and lack of regulation on the part of Congress.

 

[mightypeon]

To quote the leader of the German left party:
"Of course, Capitalists do not understand how the free market works. If they would they would be marxists."

 

[Kevin_Kennedy]

Actually most of the blame falls on the Federal Reserve.

 

[Ravi]

To quote the leader of the German left party:
"Of course, Capitalists do not understand how the free market works. If they would they would be marxists."

Good quote.

We lent money to the airlines after 9/11 when everyone was afraid to fly, to keep them afloat until people were more confident. I can't see any difference now. We should lend money to the car companies to keep them afloat until people are more confident.

Unless McConnell's underlying message is that the economy will not improve.

 

[editec]

To quote the leader of the German left party:
"Of course, Capitalists do not understand how the free market works. If they would they would be marxists."

My laugh out loud moment of the day.

NOBODY knows how a free capitalist makret works because such a beastie is an impossible as a functional communist economy.

 

[KGB]

Good quote.

We lent money to the airlines after 9/11 when everyone was afraid to fly, to keep them afloat until people were more confident. I can't see any difference now. We should lend money to the car companies to keep them afloat until people are more confident.

Unless McConnell's underlying message is that the economy will not improve.

the airlines had an incident beyond their control occur to them....the automakers have self inflicted their own wounds....not even in the same ballpark.....

 

[Ravi]

the airlines had an incident beyond their control occur to them....the automakers have self inflicted their own wounds....not even in the same ballpark.....

The automakers did not make the economy fail.

 

[del]

The automakers did not make the economy fail.

and the economy didn't make the automakers build shitty products.

 

[WillowTree]

The automakers did not make the economy fail.

nope,, but they were in trouble long before the economy failed.. tell me if I'm wrong,,


they produced cars that could not compete with their competitors ,, they cost too much to produce and did not have the quality.. hence people bought cheaper more reliable automobiles,,

 

[Ravi]

and the economy didn't make the automakers build shitty products.

No, and from what I understand they were actually making a profit and out-performing their Asian competitors of late.

 

[Southpaw]

It's interesting that your title mentions Republicans yet the Congressional policies which you speak of were primarily pushed by Dems.

Lowering Mortgage Standards: Primarily the Dems with a few 'Dim'-witted Reps

Gas-crunch: Dems

 

[Ravi]

It's interesting that your title mentions Republicans yet the Congressional policies which you speak of were primarily pushed by Dems.

Lowering Mortgage Standards: Primarily the Dems with a few 'Dim'-witted Reps

Gas-crunch: Dems

Actually, doing away with down payments for low income borrowers was a Republican effort. But that isn't what brought down the economy, nor was what you are talking about.

Thanks for playing!

 

[DavidS]

The automakers did not make the economy fail.

No, but they made themselves fail.

 

[del]

No, and from what I understand they were actually making a profit and out-performing their Asian competitors of late.

ahh, that would explain the need for a bail out.

 

[Ravi]

ahh, that would explain the need for a bail out.

I think it is a loan, and not a bail out. Look around, Del, almost every company is starting to falter because of the state of the economy.

These companies are no more at fault for the economy than the airlines were at fault for 9/11.

 

[Andrew2382]

No, and from what I understand they were actually making a profit and out-performing their Asian competitors of late.

You don't understand much apparently

 

[Ravi]

You don't understand much apparently

Thanks for your insight.

 

[DavidS]

I think it is a loan, and not a bail out. Look around, Del, almost every company is starting to falter because of the state of the economy.

Wal-Mart is doing well. Ford is healthy. Best Buy is ok...

Why is THIS recession worse than other recessions? Because Lehman Bros. failed? Because interest rates rose on mortgages when people couldn't afford them and we had record foreclosures?

These companies are no more at fault for the economy than the airlines were at fault for 9/11.

So our economy has been hijacked by terrorists?

 

[Southpaw]

Actually, doing away with down payments for low income borrowers was a Republican effort. But that isn't what brought down the economy, nor was what you are talking about.

Thanks for playing!

Here's an interesting article for ya.

Minorities' Home Ownership Booms Under Clinton but Still Lags Whites' - Los Angeles Times

All of this suggests that Clinton’s efforts to increase minority access to loans and capital also have spurred this decade’s gains. (talking about the 90s) Under Clinton, bank regulators have breathed the first real life into enforcement of the Community Reinvestment Act, a 20-year-old statute meant to combat “redlining” by requiring banks to serve their low-income communities. The administration also has sent a clear message by stiffening enforcement of the fair housing and fair lending laws. The bottom line: Between 1993 and 1997, home loans grew by 72% to blacks and by 45% to Latinos, far faster than the total growth rate. (I thought everything Billy touched turned to gold???)

Lenders also have opened the door wider to minorities because of new initiatives at Fannie Mae and Freddie Mac–the giant federally chartered corporations that play critical, if obscure, roles in the home finance system. Fannie Mae and Freddie Mac buy mortgages from lenders and bundle them into securities; that provides lenders the funds to lend more.

In 1992, Congress mandated that Fannie and Freddie increase their purchases of mortgages for low-income and medium-income borrowers. (which party was in charge of Congress in 1992???) Operating under that requirement, Fannie Mae, in particular, has been aggressive and creative in stimulating minority gains. It has aimed extensive advertising campaigns at minorities that explain how to buy a home and opened three dozen local offices to encourage lenders to serve these markets. Most importantly, Fannie Mae has agreed to buy more loans with very low down payments–or with mortgage payments that represent an unusually high percentage of a buyer’s income. That’s made banks willing to lend to lower-income families they once might have rejected.

Once the government lowered the standards, the private sector smelled the cash and quickly followed.

 

[Tech_Esq]

Good quote.

We lent money to the airlines after 9/11 when everyone was afraid to fly, to keep them afloat until people were more confident. I can't see any difference now. We should lend money to the car companies to keep them afloat until people are more confident.

Unless McConnell's underlying message is that the economy will not improve.

The difference is viability. The deal last night and the deal with bankruptcy is to get to a point of viability. If you can't get to that place, then it's just a welfare program for the auto companies and their workers.

The UAW who has benefits that are greater than their salaries at this point (who else here can say that?) Refused to budge on anything. That issue alone prevented a deal last night. Everyone else was willing to bargain, but not them. Now, why shouldn't they live like the rest of us? Why are the UAW members so much better than us? Why should we, who don't have it as good as them subsidize their intransigence?