Car Companies and Government Economics

In case you're in the mood to hear grown men argue and interrupt each other over economic issues, here's a video:

Peter Schiff is a very smart man and has been saying things along these lines for almost two years now. The beauty and danger of the free market capitalistic system is the lack of ceiling and limit, but that comes with no safety net.  The government has to let these companies fail so that they can re-structure and re-adjust to the current circumstances.


And why not have Ron Paul weigh in on the issue? No matter what everyone thinks, when it comes to finances and economics in our country, Ron Paul has always sounded much more knowledgeable than Obama or McCain. Worth listening to at least.


And here's Jim Rogers talking about the market and learning economic lessons from the past, and teaching the CNBC anchors some lessons along the way:


So.... let the market handle it, stop the bailouts, keep the government out of it, abolish the fed and its horrible system, go back to a gold standard?  Sounds like some difficult and unpopular decisions for the long-term success of the country.  We'll see if politicians start thinking further down the road and not just till the next election.

Thanks for the tip...

Just a friendly reminder from your neighborhood Metrorail map:
"Don't eat or drink cigarettes while riding our trains. This is offensive to other riders."


Mmmmm delicious cigarettes. Is this good enough for Failblog??

On the road... this time

While I personally don't agree that the federal government and American taxpayer should bailout the automotive industry, at least when Rick Wagoner, CEO of General Motors, was planning this second trip to DC to beg and plead for billions of dollars, he picked a car instead of his private corporate jet. (Story: Breitbart | FoxNews)

Maybe a little humility is what the Big Three need right now. No, check that. They need a fresh start. Clean house and start over.

I think it is a good thing that the big dogs are starting to think about the way they present themselves a little bit. Flying to DC in a private jet was a bad move. This choice to drive is an improvement. And he is driving a Malibu hybrid... which sends a good message as well. Granted, even though it is a hybrid, combined fuel economy still doesn't break the 30 mpg barrier. In his caravan of vehicles, there was also a Chevy Cobalt XFE, which Wagoner frequently boasts is the most fuel efficent in its class. Once again, a good message to send, but bottom line, even the XFE gets only a combined 29 mpg (mpg estimates provided by fueleconomy.gov). Yes, he always cites the 36 hwy mpg, but that's not the whole story is it? Maybe someone should have driven alongside him in a Prius or Insight and kept track of who had to stop for gas more and whose trip cost the most. Maybe then the reality of GM's product line shortcomings would set in. But probably not. Ooooh, or even better, pull one of the secret, remaining EV1s (Who Killed the Electric Car? | 20 Facts about EV1) out of mothballs and take it for a spin. Hm, right.... 120 mile capacity.

Just in case we forgot how the last visit to Washington went:

So who knows how this will all work out. I don't think the Big Three deserve a bailout, but at least they are starting to think a little bit about how they present themselves and what the American public thinks. The Big Three CEOs even offered to cut their multi-million dollar salaries down to only $1 as a display of good faith and to try to win the public's approval and support. Once again, that is a wise PR move (Flip-flopping, a little desperate). These guys are trying to make a case for the bailout, but I think it is still an uphill battle. Not to mention, their salary isn't the the only source of revenue. Most of these guys are making even more in bonuses and benefits and such, just look at the Forbes breakdown of Wagoner's total compensation. He is getting over $6.3 million in "Bonus" and "Other" categories, so cutting his "Salary" to $1 is nothing more than a placating photo op and headline. He is still racking in the dough.

Anyways, hope you enjoyed your heavily documented road trip to DC, Mr. Wagoner. We'll see what other tricks you got up your sleeves in the upcoming weeks and months.