National Economy/National Editorial 4 Titled: “More Tax Payer Help” to GM & Chrysler The State of the Union 3 National Economy/National Editorial 4 Titled: “More Tax Payer Help” to GM & Chrysler With 17.4 Billion Dollars already given to the Auto Makers in what is known as the “Great Auto Bailout”, what is it going to take for the two Auto Companies to regroup and hold the companies together? The News Monday has the Obama Administration given the two companies failing “grades” meaning “bad performance”. The Company’s want to be able to get more tax payer money’s to hold up the Automobile Industries. The reason why the American Economy has seen sever changes of late is mostly because people have already liquidated there assists and many people are now unable to participate in the new marketplace. Whether there is that confidence or not, at times, it seems that some weeks the performances of the markets reflect peoples spending and one’s own purchasing power. The companies have already had there methods of keeping track of trends and having their experts shed some light on what is selling and what is not selling. The lack of confidence in the market reflects from peoples own experiences on obtaining credit for items such as cars, property, and communication. Many people are being rejected for credit even while the bailouts continue to take place. It is hard to get new credit and that is what the basic obstacle for the car companies is to sell more cars. The last 5 years plus, the car company’s finance companies have charged people at times high interest to where once the person buys a new car, or used car, he is upside down on that vehicle. The person always is going to be 2000-5000 or more upside down on the one vehicle. Now there is a gridlock of two things between why the car companies are in disarray and why the American Tax Payer money’s ought to or have to bailout two major companies that have always been considered successful. Part of the issue is that the government wants to use the money as a diversion to get the company’s more money anyways. This policy continues where failure is rewarded in the new American Socialist Economy where the tax payer, you and I, do not have the ability to just debate it if so much tax money should go for a particular company or cause? Or does the Tax Payer? I continue to hear the News Network mention the fact regards to loopholes on the tax payer money going out to company’s such as GM, but have yet to hear them the answer to that loophole that can challenge any Bailout whether it be for the auto industry, bank industry, or another industry. The funny thing, the two do have a parallel on both getting that tax payer money, and still it is not easy for one person to obtain new credit for a car. It is the double standard and while people have yet been able to come to grips with the collapse of so many companies resulting through the government policies we have seen, now it is the government via tax payer money’s coming to the rescue. What should GM do and what should Chrysler do knowing that they are going to be powerless on how their finance companies all lend out money to car buyers anyways during these economic times? What is it going to take for the companies to rebound in order for people to keep their jobs and the company’s doors open in their given facilities? While the tax payer gives out more money, how will the 17.4 billion be able to be reimbursed, and do the companies have a strategy in order to be able to sell cars? One thing that continues to be an obstacle is the auto industries bad news continues to make the rest of the American Economy and companies look bad. Currently the U.S. Economy is still very strong. It is a good time to invest in U.S. Companies right now. It is a good time for companies outside the U.S. to lease buildings and do business in the United States. There are a lot of good cities for economic growth potential, and once that prejudice within is overcome then things will improve. To compare the auto companies stock GM now selling at $3.62. Ford is trading at $2.84. Toyota is trading for $65.59. Toyota outsold GM last year, but has been reporting some loses compared to a year and two years ago. The U.S. Auto Companies should not have to rely on any more tax payers money to bail out the companies. The companies need to first come up with alternative strategies. new makes, new features in the cars themselves to be able to sell more cars. The Companies have all been spending a ton of money on advertising on television spots for news, sports, and entertainment, and now the tax payer has to reimburse that money so the companies can continue to advertise, and to be able to exist. In my opinion still with the bailout of the auto industry, it should not have any more affect on the rest of the U.S. Economy, and the fact that the Press Coverage continues to show the parallel between the failed U.S. Car companies and the reasons why the government has to spend more tax payer money to companies that fail. The ways to improve the U.S. Economy is by using some of the tax payer bailout money to create jobs in production and industry in states in the United States. Rather than going to another country, companies ought to consider opening their business in Nevada or other states to where the taxes are lower to operate. Some of these states that promote high taxes on their residence and business owners fail to comprehend that as a whole that hurts the National Economy when Businesses are reluctant to base their business in that given state. California loses a lot of business because of high taxes and businesses move for that reason solely, so the government does have some affect on that aspect of the economy. Currently the 140000 auto workers are in the middle of this failure of the company’s ability to sell cars. What is wrong with the cars, Nothing? Are people buying other makes? Some people are. But what are you promoting to the car buyer in order for him/her to want to choose the GM or Chrysler, or Ford? What can you offer the car buyer in order to preserve the industry from collapse? After this round of bailout money, will this be the last money’s able to be lent to the auto industry company’s? There is a lot to consider, but nobody is talking about the fundamentals of the economy before lending all this money out. The borrowing aspect is the main aspect, and then the promotion and advertising aspect to get people to save money and be aware of the savings if there are any need to be considered. The only way for the company’s to sell cars this year while the next years cars are being produced is by giving 0 Interest on all the car loans. Second, those people already in other obligations to other car loans with high interest loans keep the trade in as close to the principle as possible that will give the incentive for people to want to buy a new car and get out of the car loan that they are in. GM needs to expand eventually and have plants in Iraq and Afghanistan to where the company can produce cars and sell those cars to the nearby market. There is no reason why GM has to go down, and there is no reason for the speculators to continue to talk down the economy from the result of the government failures in policy that has led us to this point. Currently in Southern California, gasoline was a few weeks ago 2.08 and now at 2.25-2.30. What still is not talked about is who is setting that price of gas, and until the consumer is able to feel secure about the price of gas, and what that price would be even at 2.25, the car industry will always remain up and down. The two barriers are credit and policy why GM is losing money the last 5 years in my opinion, but still what is it going to take for the company to be able to produce cars that people want to buy like before in the first place? There seems to be a lack of interest on buying certain cars GM produces. Single people are buying smaller cars nowadays. Married people and Couples used to buy the SUV’s and some are still driving them. What do you have to offer those car buyers after they complete the financing of the cars they are already in? The tax payer is giving, but not getting anything in return for the money lent out or bailout, only it’s the same rhetoric from the leaders on why 17.4 billion may not be enough. Before when the President was campaigning to be President of the United States, not he, or any of the candidates presented the American People with a basis of an economic plan. It was not until after the Election was over the people were able to see first hand where all the tax payer moneys are going from the lack of having an economic plan in the first place. Many people now see that flaw from the election where the media and News Networks didn’t put enough emphasis on that and now it’s the basis of all their shows on TV. What Economic Plan? Now it’s called the Stimulus Package, and it is said that it will create jobs and it is for infrastructure. Now the whole world is using the excuse for the infrastructure as a reason for their own government to change the way they are investing in their own economies. How does GM fit into the global market and how will it be able to sell more cars in the U.S. and in other Countries? GM is Cadillac. GM is a lot of cars and Makes. Ford is a good strong company too. Ford makes the Mustang. There is no reason why the companies can’t give zero interestloans to sell new cars while the lending companies are fair with the trade ins. The current car population can be bought then resold to another area of the world and that can be used as credit for payment on the sale of those used cars in the meantime while people are not only trading in their SUV’s, but buying Mustangs again. GM, Chrysler, and Ford can give their customers a gas card that has the price of gas set per gallon to use as an incentive to get people into new cars. There are a lot of marketing strategies the company’s can use, but who is going to deliver on improving the companies status for new credit based on car sales? With all the Insurance money bailout, one of the obstacles people face in buying a car like a Mustang is the fear that the insurance will be $200.00/month or higher, and too expensive for driving the sports car. The Insurance Companies are also part of the obstacle for people buying certain cars over others by the prices and rates the companies set for coverage showing some prejudice to certain cars. That is a fact. There are great stocks and companies to invest in. Chevron is a great company with many company projects all over the world. The Energy Giant is trading at $68.90, CVX. US Bancorp is trading at 15.64, Oracle Corporation 18.01, GE trading at 10.78, Cisco Systems at 16.95. Intel 15.42. In Market News IBM is trading for $94.15. The bizarre News of IBM last week is that the company announced moving branch to India which will result in the loss of 5000 American jobs. The Company that takes some TARP money then moves a plant to India to build computers cheaper. The company’s spokespeople claim it is for strategy and to remain competitive it must move those jobs overseas. What is ironic is that the tax payer gives companies money, then the company wants to move outside the United States with that same money to build the product there and pay the workers there not taking into account that people here will then end up later buying a product that they had already paid for. Buying the next round of products from that move would be that concept of economics, where the tax payer pays twice on the same money. Every Company is different and every company has the potential to do well by doing business in the United States. Right now the Market Dow Jones Industrial Monday Opens at 7575.00, NASDAQ 1224.50, S&P;P 793.60. Some Industries to consider to investing in, Energy is good like Chevron. Invest in Steel. This is a great time to invest in the U.S. Economy and the American Worker is the best in providing the goods and services for the consumer in many different industries. The talk of the government wanting to take over or overhaul certain industries illustrates how socialist the U.S. Economy has become. The Soviet Union dissolved because its economy dissolved and went broke, and that is what socialist economic policies lead to in the long run for a Super Power. In Order to remain the Super Power, the U.S., and the U.S Tax Payers money needs to be spent more wisely in the future, re-invested to its own economy, own people, and own services, and stop all the deficit spending. The tax payer money needs to be repaid, but who is it going to be? When money is lent out in the fashion we have seen for the bank Industry, Insurance Industry, and now the Auto Industry, what kind of playing field do we give the New Market Investor now to want to invest in the market? How are these companies going to be able to maintain credit without hurting other elements of the economy? Individuals work and production is the basis of the taxes he pays into the system both State and Federal and it is important to maintain a strong work force at all times to continue to generate that Tax Payer Money. GM CEO Rick Wagoner stepped down from his post under amount pressure from the Obama Administration for him to resign. Thank you all rights reserved www.jamestowncalif.com www.jamestownjupiter.com www.jamestowncalifornia.wordpress.com
