President Obama wasn’t indulging in hyperbole last Sunday when he told 60 Minutes that “the only thing less popular than putting money into banks is putting money into the auto industry.” The Freep reports that a new Polk survey shows that 61 percent of Americans now oppose giving GM and Chrysler more money. More tellingly, support for a continued bailout of the auto industry peaks at only 16 percent in the manufacturing-heavy Great Lakes region and drops to as low as 4 percent in favor in New England. And there’s little room to argue that lack of support is based on ignorance or misperception. About the same percentage of people who opposed more loans also recognized that denying them would have dire economic consequences. One Polk analyst describes the emerging consensus on Detroit’s predicament as “it’s a problem, but it’s not a problem for taxpayers.” Cold.
But consumers aren’t exactly stepping into the breach either, as the Freep reports on a Deutsche Bank analysis that says Detroit is staring down another 40 percent plus sales drop. US SAAR could drop to 8.6 million units this month, with GM and Chrysler taking the brunt of the damage on “solvency concerns.”
Remember our bet? I called 8m SAAR. It makes me feel dirty, but a steak’s a steak.
When GM, after getting a healthy shot of bailout bucks, announced their plan of recovery that includes plant closures and extensive job cuts, people changed their tune from “I’m gonna get me some of that bailout cash” to “Oh NSFW!”
Neither GM nor Chrysler have given me any reason (meaning good product at a good price) to support them. I guess the government can unconstitutionally support a failed business, but I will not voluntarily do so.
I am hoping that O’Bummer backs up his words regarding (the lack of) consumer/taxpayer sentiment on bailing out Detroit.
You can everybody some of the time, but you can’t fool everybody all of the time.
Bruce
What businesses aren’t seriously shrinking right now? Even our service sales are waaaayyyy down. People aren’t doing anything they can do without, and a lot of people aren’t driving nearly as much which translates into less service on their cars. The worst part is that there’s no telling how far down the road this is going to continue, either. I admit, it’s got me a bit worried.
Well, most people are opposed to bank bailouts, too, but the banks and hedge funds got about $1T of taxpayer sugar yesterday, so I wouldn’t expect that Washington will shut off the life support to Detroit any time soon.
@superbadd75
What businesses aren’t seriously shrinking right now?
Pharmaceuticals.
superbadd75 :
March 24th, 2009 at 11:01 am
What businesses aren’t seriously shrinking right now?
Government(s)
superbadd75 :
March 24th, 2009 at 11:01 am
What businesses aren’t seriously shrinking right now?
Video Games
superbadd75 :
March 24th, 2009 at 11:01 am
What businesses aren’t seriously shrinking right now?
Booze.
superbadd75 :
March 24th, 2009 at 11:01 am
What businesses aren’t seriously shrinking right now?
Bankruptcy and litigation law firms
superbadd75 :
March 24th, 2009 at 11:01 am
What businesses aren’t seriously shrinking right now?
Collection and repo agencies
Walmart.
Whatever. The outrage over the banking industry, despite even more dire consequences, didn’t make any difference either. They continue to throw money at that ridiculous beast. They’ll do the same here, opinion polls be damned.
Why? Because politicians know what’s best for us. That’s why. And whatever it is they do, it won’t matter, because people will march to the polls next time and pull the lever for whomever has the best name recognition….so those people already in office, already voting over and over to support this stuff despite a vast majority of Americans being against it.
So it will continue. You really expect anything is going to change?
superbadd75 :
March 24th, 2009 at 11:01 am
What businesses aren’t seriously shrinking right now?
Retail liquidation firms.
Hookers
What businesses aren’t seriously shrinking right now?
Religion.
njdave :
March 24th, 2009 at 1:50 pm
Hookers
———————————————
You can’t be more wrong. I just saw it in the news that the sex trade took a blunt hit, since previously a lot of the cost was paid by the company accounts.
Yes, you heard it right. Companies executives used company funds to pay for hookers, a little bit of clever accounting will record that as trip expenses. That part of the business has since seen a big decline. The top of the line hookers lower their asking price by 50%~75%. And everyone below them adjust their asking prices accordingly.
wsn: “The top of the line hookers lower their asking price by 50%~75%. And everyone below them adjust their asking prices accordingly.”
Hmm .. so about how much does an attractive, disease-free hooker charge nowadays? My interest is purely academic, you understand. Just in case a friend asks me. And I’m sure it’d be a purely hypothetical question for him.
50merc,
Actually, the evidence has been reported in the Los Angeles Times in November about how revenue and earnings for women working in Nevada brothels is down big time.
Aren’t the sales (or lack of them) votes on the viability of GM & chrysler? It is the only way the public can vote, with their feet. This vote has been going on for a long time here in the US, and the denials from the domestics just as long. We sometimes fail to remember, that nothing has changed. GM and Chrysler were losing market share all doing the boom (16 Million per year) sales years as well as now. The foreigners are still gaining on them, but at the reduced numbers of total sales. GM and Chrysler are about to go irrelevant, the most dire consequence that could be awarded.