[sgarnett]

The Senate, UAW, et al, just gave up (ie failed) on reaching a compromise a few minutes ago.

I don't know how GM will come out after bankruptcy (they just hired the bankruptcy lawyer), but the stock market futures are looking ugly tonight. It actually held up well through some dismal recent employment numbers, but I suspect tomorrow is gonna be ugly. Rebuilding my retirement is going to mean austerity and no new cars for a very long time, and I suspect that will be true for many others. That can't be good for any automaker.

I'll admit I wasn't convinced that bridge loans to March could solve the problems for GM, so I don't claim to know what the right answer was. Nevertheless, this is going to be a big kick in the teeth for the economy.

This post has been edited by sgarnett: Dec 12 2008, 04:07 AM

[T.O.Dillinder]

My brother is making $ 17.50 per hour ($ 36,400 gross per year)at Lear Seating
His wife was making $ 22.76 per hour ($ 47,340.80 gross per year) working on the assembly line at GM on 2nd shift.
Compare that to your yearly wage.
The 150K hourly workers are in the Skilled Trades (Plant and Machinery Maintanence)with a wage of $35 p/hr., that are working Saturdays and Sundays and are making that wage double and triple that on those weekend days.
The Assembly workers at the Chrysler plant in Belvedere, IL are making over $ 26.00 per hour now.
Financial Institution and Corporate Heads need to quit taking the 7 to 9 figure Bonuses. How can anyone justify that kind of bonus when their company is losing money.
In 1963 my father started at the Janesville plant making $ 3.63 per hour. after his proby period he bought a 1963 Corvette.
I do not recall the sticker price. I think they were around $ 6,500.00 back then.
Anyways, my point is look at what my bro makes and the cost of a new Corvette.
The cost of living has risen at a higher percentage rate than people's salaries, it doesn't matter what your profession is.
If we could figure what the CEO of GM was making in 1963 compared to today, we would all be shocked at how the gap between the salary of a Top Person of a Corporation and the salary of "low guy" Joe has become greater by what some would consider extreme.
If I remember correctly from one of my business management classes from long ago, the CEO made approximately 300 times more than the lowest paid worker in the same company.
Today, using the estimate $ 130 million dollar salary for a CEO (and this is low, I have seen upwards of $ 300,000,000 with all options considered), and my sister-in-law's wage. The CEO makes 2,746.04 times more than my brother's wife.
So don't start hating on Union workers. You can hate on the Union Organizations Heads all you want.
Times have changed since my Grandfather was an original "Sit Downer" at the Janesville GM Plant.
The Unions pushed for what all of us share now days. Paid Vacations, 40 Hour work week, and safety improvements, and for hourly personnel, job security. But like any big organization there is politics and greed ot the top that pollutes the original cause and mode of operations of that organization.
If someone is not working, how are they going to buy your product to keep you employed?
If you price something out of the average person's range, how are you going to sell your product to keep you employed?
Sorry for the soap box, but to lay blame on the blue collar workers of companies is just plain stupid.
Teddy Roosevelt bailed out banks in the 1920's, and what happened?
The exact same thing that is happening now. Funds being use improperly by the Corporate Leaders.
What was the outcome?
The Great Depression.

[mitchntx]

many families can't afford to take a 5-25% (I didn't see the exact number) pay cut.

heavy government regulations and extortion like behavior by the UAW

For some reason people/families today live on the ragged edge. The "need" for a Suburban or Expedition to occasionally take a 5th or 6th kid to soccer practice has some how become a necessitiy. Why can't all 6 scrunch together for the 5 minute commute?

That is merely a single example of hundreds we can all come up with that absolutely proves that as a whole US citizens have become self-absorbed and fiscally irresponsible. We, as a whole, have become glassy-eyed into thinking money derived from a home equity line of credit can be placed in their e-trade account and investing via articles read on Google news is a way to afford seldom used 3rd row seating.

This issue is way deeper than the fault of any union. They just ahppen to be a convenient scape-goat.

My brother is making $ 17.50 per hour ($ 36,400 gross per year)at Lear Seating
His wife was making $ 22.76 per hour ($ 47,340.80 gross per year) working on the assembly line at GM on 2nd shift.
Compare that to your yearly wage.
The 150K hourly workers are in the Skilled Trades (Plant and Machinery Maintanence)with a wage of $35 p/hr., that are working Saturdays and Sundays and are making that wage double and triple that on those weekend days.
The Assembly workers at the Chrysler plant in Belvedere, IL are making over $ 26.00 per hour now.
Financial Institution and Corporate Heads need to quit taking the 7 to 9 figure Bonuses. How can anyone justify that kind of bonus when their company is losing money.
In 1963 my father started at the Janesville plant making $ 3.63 per hour. after his proby period he bought a 1963 Corvette.
I do not recall the sticker price. I think they were around $ 6,500.00 back then.
Anyways, my point is look at what my bro makes and the cost of a new Corvette.
The cost of living has risen at a higher percentage rate than people's salaries, it doesn't matter what your profession is.
If we could figure what the CEO of GM was making in 1963 compared to today, we would all be shocked at how the gap between the salary of a Top Person of a Corporation and the salary of "low guy" Joe has become greater by what some would consider extreme.
If I remember correctly from one of my business management classes from long ago, the CEO made approximately 300 times more than the lowest paid worker in the same company.
Today, using the estimate $ 130 million dollar salary for a CEO (and this is low, I have seen upwards of $ 300,000,000 with all options considered), and my sister-in-law's wage. The CEO makes 2,746.04 times more than my brother's wife.
So don't start hating on Union workers. You can hate on the Union Organizations Heads all you want.
Times have changed since my Grandfather was an original "Sit Downer" at the Janesville GM Plant.
The Unions pushed for what all of us share now days. Paid Vacations, 40 Hour work week, and safety improvements, and for hourly personnel, job security. But like any big organization there is politics and greed ot the top that pollutes the original cause and mode of operations of that organization.
If someone is not working, how are they going to buy your product to keep you employed?
If you price something out of the average person's range, how are you going to sell your product to keep you employed?
Sorry for the soap box, but to lay blame on the blue collar workers of companies is just plain stupid.
Teddy Roosevelt bailed out banks in the 1920's, and what happened?
The exact same thing that is happening now. Funds being use improperly by the Corporate Leaders.
What was the outcome?
The Great Depression.

The History Channel ran a terrific documentary of FDR and then a really interesting comparison to the crash in 29 and subsequent depression to where we are today. It was just uncanny the similarities between '29 and today.

Hoover was president and Mellon was the Treasury Secretary. After the crash, Hoover decided to stand pat and "to let the market correct itself" and Mellon was adamant that banking deregulation was the way for a capitalist society to flourish. FDR was elected in 1932 on a "New Deal" campaign where the nations infrastructure would be bolstered to ready the country to move forward.

Now, replace Reagan, Clinton and Bush for Hoover, Greenspan for Mellon and Obama and "Change" for FDR. Spooky, eh?

FDR's new deal got people back to work, but the banking industry, market and economy didn't rebound till 1943 when US industry was in over-drive to support the european and asian war efforts.

Execs in today's world are really no different than the soccer family described above. While the monies discussed are quite different, the principles are identical to the blue collar workers. There is plenty of blame to be spread around.