Here’s it comes. Here it comes. Here comes Detroit’s nineteenth nervous breakdown. Will it be their last? Obviously not. But just in case you thought there was a hope in Hell that GM won’t transform itself into American Leyland, sucking taxpayer cash into a black hole for years to come, the Detroit News’ reporter/cheerleader Alisa Priddle presents “Analysts: Big 3 woes imperil U.S. economy.” Otherwise known as rapper 2 Big 2 Fail’s ode Obama’s Your Mama. Priddle assembles the usual chorus of backup singers. “Every direct job at an automaker in the United States creates five more jobs, said Sean McAlinden, chief economist and vice president for research for the Center for Automotive Research in Ann Arbor. Two of the five are related to suppliers or dealers; the other three are spinoff jobs at businesses where auto industry workers spend their paychecks… By contrast, one Wall Street position creates a total of about 2.5 jobs, yet Congress expedited aid to the financial services sector this year.” Yeah, fuck them banker bitches and their $700 bil. “Declining auto sales have contributed to the nation’s economic downturn, but that hasn’t diminished the industry’s importance, said Charles Chesbrough, senior economist for CSM Worldwide in Northville, an automotive market research firm. ‘We won’t see a turnaround in the economy as a whole,’ he said, ‘until we see improvement in the auto industry.'” As Mad Max said, “If it’s all the same to you, I’ll drive that tanker.” Hang on; what’s this? A dissenting voice?
“‘I don’t believe the auto sector deserves special consideration,’ [chief economist for Comerica Bank in Dallas Dana] Johnson said. Bailing out financial institutions was necessary to prevent “terrible contagion effects that could collapse the economy,” Johnson said. ‘That should be the standard. To argue national prosperity depends on them (automakers) operating, to me, is much more of a stretch.'”
Priddle sets ’em up. Priddle knocks ’em down. “It’s not to those who have seen the Big Three eliminate more than 100,000 jobs in the past three years. Allowing an automaker to go under would wipe out portions of the supply chain, dragging down healthy foreign automakers, as well, that would have to scramble to find other suppliers to provide their parts. Automakers also buy $15 billion a year in advertising, not counting the huge amount dealers spend.”
Look for the jobs, jobs, jobs “debate” to heat-up this week. BIG STYLE.
nineteenth nervous breakdown
Dude, what is this, about your 50th breakdown as well? It’s all you seem to write about on here. Sure, it sucks but it’s going to happen. There is nothing anyone can do about it now. It’s out of our hands. Besides, with Rick at the helm you can be sure it will be a quick death.
“‘I don’t believe the auto sector deserves special consideration,’ [chief economist for Comerica Bank in Dallas Dana] Johnson said.
Dana Johnson should talk. Comerica was just handed $2.25 Billion and they didn’t need it at all. What are they using it for you may ask? It sure as hell isn’t going to be given to people who need it. Ralph Babb sent an email to employees saying it would cover administrative and workplace growth costs.
**On a side note, Dave Littman was a far more brilliant economist for Comerica than Dana Johnson will ever hope
Look for the jobs, jobs, jobs “debate” to heat-up this week. BIG STYLE.
I am actually surprised that both the Freep and DetNews have not talked more about lost jobs. You have to remember that bad news is nothing new here in Michigan. However, I do not know just how far the job loss will reach. It probably will not hurt the coasts very hard nor will it hurt the South but the Midwest is screwed. Hell, there isn’t even any more rust in the Rustbelt. It’s now going to be the Invisible Belt…there I just coined a new term for the Great Lakes States. In Michigan we have lost, what, 600,000 jobs in the past half decade. What’s another 40,000 gonna do?
I grew up in Michigan. It’s a beautiful state, for sure. I still have family there. They are frustrated at the political and economic climate.
But I think it colors their outlook; taints their judgement. Almost everybody I know there is convinced that the entire US is having economic hard times as bad as Michigan. And that’s not true.
So the state keeps voting for the same people who keep doing the same things; driving them further and further into economic lows.
My family is trying to keep the faith, but I’m glad I don’t live there.
Sand.
Anyone has a link to this whole “every automaker job creates five more” thing? A quick scan of the CAR website didn’t yield any useful information.
we’re actually getting incentivized TV advertising now because the dealers (who traditionally make up about 30%) have been pulling out like crazy.
Man I love this site.
“Otherwise known as rapper 2 Big 2 Fail’s ode Obama’s Your Mama.” That is rich.
Every city (or State, for that matter) dominated by Democrat doctrine (more unions, more government, more corruption, more politicians on the take, more people depending on the government) is in the same boat: New Orleans, Detroit, California ($7B deficit).
Notice it’s only the US carmakers that are going under. And not for lack of trying. We just bought a 2008 Ford Edge and my wife loves it, by the way. Ford is making good vehicles. Vehicles good enough we chose it over the Japanese
It’s Democrat doctrine that’s killing the Big 3.
With GM bleeding $1B per MONTH, no bailout is going to save them.