Industry News: Former Car Czar Says All Stakeholders Should Have Given Up More

[William Maley]

William Maley

Editor/Reporter - CheersandGears.com

December 17, 2011

Steven Rattner, the former car czar that oversaw the federal bailouts of General Motors and Chrysler, said on Thursday to the Detroit Economic Club that the Obama administration's Auto Task Force should have forced all the stakeholders, including the United Auto Workers, to make more sacrifices.

"We asked all the stakeholders to make very significant sacrifices. We should have asked the UAW to do a bit more. We did not ask any UAW member to take a cut in their pay," he told the club.

Rattner also revealed that the US Government gave GM too much money, but on the side of caution.

"We put more cash into GM than we probably needed to — and we knew this. It's part of why GM is so well-capitalized today."

Source: Detroit News

View full article

[loki]

Duh!

any more than $.01 was too much.

never count on "gov" to make a rational decision with money....or to "hurt" a powerful lobbying group.

Edited December 17, 2011 by loki

[Drew Dowdell]

I guess you'd prefer to see GM liquidated Loki..... and Chrysler... and probably Ford too. No they wouldn't have been bought by another car company. Fiat couldn't have done the deal they did without the financing. No other car company, not VW, not Toyota, not Honda, not Nissan/Renault, not Benz could have swallowed GM with special financing much less on their own.

I have no qualms with the Government giving GM and Chrysler money when they fell on hard times. Toyota, Honda, and Nissan have been getting government handouts from Japan and local governments in the US for YEARS now.

The payout back to the government in income tax will more than make up for what we've lost on the deal. Incomes that wouldn't be there had GM succumbed and taken Chrysler and Ford with them while severely damaging Toyota and Honda in the process.

[loki]

Yay for mercantilism olds!!!! (i'm assuming you should know exactly what i'm talking about) ....that is all.

[Drew Dowdell]

Yay for 2 - 4 million more unemployed, which is what you'd prefer.

[lt1george]

This guy is just like his name RAT. What kinda car does he drive or should I say own ? This guy is NOT in the real world.

EVERYONE but guy's like him have to sacrifice. He can stick it where the sun doesn't shine.

[loki]

Yay for 2 - 4 million more unemployed, which is what you'd prefer.

better than economics of war.

unemployment is temporary, economic warfare hurts everyone(except those promoting it,powerful and the rich)

[Drew Dowdell]

In case you haven't noticed, unemployment isn't temporary lately.

[balthazar]

never count on "gov" to make a rational decision with money....or to "hurt" a powerful lobbying group.

QFT

[loki]

In case you haven't noticed, unemployment isn't temporary lately.

only if you're looking at stats....which are a political tool to push intervention policies.

http://mises.org/daily/4962

edit: and http://mises.org/daily/2589

Edited December 19, 2011 by loki

[Drew Dowdell]

The government unemployment stats are notoriously understated for political reasons. There are far more long term unemployed out there than the government reports. To argue with me on this would only further cement my point.

[loki]

i'm not arguing with you about how understated they are(political reasons-- from above; "which are a political tool"). i'm arguing that the stats are "Nourishing the Mercantilists"(in the first article) which you want instituted when other countries are doing the same thing.

[Drew Dowdell]

Folks, this is a clear example of the US being 94th in education. OOOOOh look! I used a statistic!

[loki]

indeed olds.... i agree the original post is an example of why we are the 94th in education!

[Croc]

Why am I seeing any of loki's posts? His are supposed to be hidden according to my site preferences, for obvious reasons.