Bailout Opinions
December 5th, 2008 at 12:57 am by Eric Halvorson under Eric Halvorson's Blog
Today, a prominent local businessman predicted the automakers will get their bailout. Bill Mays of Mays Chemical said he believes there’s no choice but to support the auto industry — to ensure its continued survival.
Mays and his company’s controller, Eric Gillespie, spoke to me as corporate leaders who once had a strong tie to the industry. Now, their shipments to the automakers represent less than ten percent of Mays Chemical operations.
Mays and Gillespie said, about three years ago, they reduced their ties to the auto industry. The car companies “did not treat their suppliers in the most positive way,” Bill Mays said. So, the company decided to devote more attention to other industries that are “more appreciative” of the company’s service and prices.
Both men said they recognize the economic importance of the auto industry — especially in our part of the country. That’s why they believe the government will help the car makers. But, Bill Mays wondered what that would mean to the foreign car companies which employ American workers in American plants.
Mays also shared his concern about the businesses that still serve the auto industry. He said the ripple effect on those suppliers would be devastating and would drive small, minority businesses into bankruptcy.
Tags: bailout
Eric,
I understand the problems with the Congressmen not wanting to bail out the Auto makers and giving the CEO’S a hard time BUT what about the bank CEO’S?
The banks gave money and lead people to believe their houses were worth more than they really were and loaned accordingly. As an example, just 2 months ago we tried to get our home refied (which we did) and we were told our home was appraised for 158000 and were loaned nearly the full amount. After getting the loan, we were told that our home was not worth nearly as much as we were told due to the drops in mortages. Our payment raised several hundred dollars a month. (which we did not know it would raise until after getting to the closing table but by then we had no choice)
The Goverment bailed out the banks and the banks STILL are giving false information to give a loan. I work for a supplier to the Auto makers and if Detroit is allowed to fail then all the suppliers will fail as well. The unemployment will be horific. Families will break under the stress. More homes will be lost. The opinion is for the Auto maker’s CEO’S to step down. WHAT ABOUT THE BANK CEO’S and the lenders that allowed the subprime mortages and the false infomation given to the people when aquiring loans? Should they not be held accountable for their actions as well? Why are the Automakers being given such a hard time when an open check was written to the banks even after the heads of the Goverment knew their was corruption within the system?
I just don’t understand. What I do understand is I will (as well as my wife and son) will loose our home if Detroit is allowed to fail. We will be lucky if we have food on the table (that is, if we even have a table). Please try to understand there is more here at stake then just the Automakers. All of us “little guys” will suffer as well.
ERIC;
I BELIEVE THE HELP FOR THE AUTO INDUSTRY IS A NECESSARY EVIL FOR OUR COUNTRY TO PROSPER..GRANTED TO INDUSTRY HAS MADE SOME POOR DECISIONS IN THE PAST AND HAVE ALLOWED THE UNIONS TO PUSH THRU SOME COSTLY BENEFITS,,(JOB BACK)..YOU CAN’T PAY PEOPLE TO SIT AT HOME AND NOT BE PRODUCTIVE IN THERE FIELD..
THE GOVERNMENT AT THE SAME TIME SHOULD HAVE PUT A LITTLE TIGHTER REIN ON THE FINICIAL GROUPS,,THE GOT 300 BILLION WITH NO ACCOUNTABILITY..THINGS WERE SUPPOSED TO IMPROVE INTEREST RATES AND FREE UP LOAN MONEY,,I BELIEVE IT HAS DONE JUST THE OPPOSITE..HAD A SITUATION WHERE A RELATIVE WAS LATE ON A CREDIT CARD PAYMENT,,NOT MISSED BUT LATE(BANK OF AMER),,THEY IMMEDIATELY INCREASED THE INTEREST RATE TO 29.9%,,THIS IS THE SAME BUNCH THAT IS RESPONSIBLE FOR THE WINDOW CO. FIASCO IN CHICAGO..
THANKS FOR LISTENING YOU GUYS & GALS AT CH 8 DO A GREAT JOB..
ERIC,
I HAVE JUST ONE QUESTION; AS THE AUTO DEALERS SHUT DOWN THEIR PLANTS BECAUSE OF THEIR FINANCIAL CONDITION, ARE THEIR EMPLOYEES BEING PAID AND IF SO AT WHAT LEVEL?
THANK YOU.