Cartoon of the Day: Detroit News' Henry Payne
CARPE DIEM
Professor Mark J. Perry's Blog for Economics and Finance
Tuesday, March 31, 2009
About Me
- Name: Mark J. Perry
- Location: Washington, D.C., United States
Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan. Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
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8 Comments:
Is this even amusing any more? It's just sad.
I don't understand why so many people are getting upset about the shakeup in Detroit. Car companies came hat in hand to the devil - what did they expect?
They only had 4 options that I can think of for the domestic auto companies:
1) Bankruptcy, and rise like a phoenix from the ashes.
2) Renogiate everything with everybody - assuming this is even possible without Bankruptcy
3) A slow lingering painful death
4) BOHICA (look it up)
The last option is going on now, because the companies were unable or unwilling to undergo the other 3.
None of this is "fair" and none of this is "right" but your parents shoulda taught you that life was neither fair nor right.
I have no problem with the current situation - except that the financial/insurance organizations should have gotten the same flak that Detroit gets.
Hopefully we follow Germany's example with the formation of Volkswaggen.
Lifted from wikipedia:
"Changes included better fuel efficiency, reliability, ease-of-use, and economically efficient repairs and parts."
That sounds oddly familiar...
ExtremeHobo - that was ONE car, and it was specially requested by a dictator. Not a model I particularly want to follow.
After "firing" GM CEO RIck Wagoner, and moving to replace the board of directors, Obama will now ‘own’ the GM problem. If the company shuts down, costing tens of thousands of blue collar jobs, it will be under executives chosen by Obama. It will be Obama’s failure, not just GM’s failure. And what about Gettelfinger? Will Obama be getting rid of the head of the UAW too?” Shouldn't he go as well? After all, the UAW is responsible for the straightjacket that the auto industry finds itself in. Responsibility is very selective in Obama's America.
Warranty service by the DMV.
misterjosh asks: "I don't understand why so many people are getting upset about the shakeup in Detroit. Car companies came hat in hand to the devil - what did they expect?"...
Good point... Why didn't these guys asked to be relieved of the onerous costs of the CAFE standards...
Note the following from the Econobrowser dated March of '07:
CAFE standards are based on the premise that auto manufacturers and consumers are making inappropriate decisions about the kind of vehicles that get produced...
If I were Mr. Wagoner I'd be ecstatic about fleeing that sinking ship. So he misses out on his $1 salary this year...no biggie. I'm sure he will find gainful employment somewhere (ideally out of the domestic auto sector) and leave the rubbish to those who deal best in garbage...Obama and Friends.
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