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Is The House Of Cards Falling? 100 Auto Suppliers Now Want Access To $700B Bailout

Agent009 submitted on 11/17/2008 Official Bell & Ross Timestamp: 12:09:01 PM

13 user comments | Category: Misc News | Source: | SOURCE: online.wsj.com

Auto-parts makers are requesting access to the government's $700 billion financial-industry rescue fund, and Democratic lawmakers are planning tough conditions -- including a government oversight board -- on a proposed aid package for Detroit's troubled auto companies.

Democratic lawmakers Monday plan to unveil a bill that would give the Big Three auto makers access to the $700 billion Troubled Asset Relief Program set up in October to help ailing banks and other financial firms. As written, the legislation wouldn't include auto-parts makers.

Parts makers are seeking to change that in a letter signed by nearly 100 companies and being sent to the House and Senate on Monday. In the letter, the Motor and Equipment Manufacturers Association, a trade group, will ask that its members get equal access to TARP funding sought by the car makers.

 



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Is The House Of Cards Falling? 100 Auto Suppliers Now Want Access To $700B Bailout

About the Author

Agent009

"If everything seems under control, you're just not going fast enough."

— Agent009 (View Profile)


User Comments

Designer1

All I have to say is that, the country is truly full of thieves. It is ONLY the rich screaming that they've lost money and the government is paying all the attention to them, what about us the average people? it is US who lost their homes and jobs, are we going to have a part of this bailout money? This is a bailout to make the rich richer, plain and simple. Anyone that supports it is a true idiot and has no education what so ever.

— Designer1 (View Profile)

Posted on 11/17/2008 1:01:25 PM | reply to this comment | Votes: 1   

Agent009

While I am not discounting your point, I have an example of just how bad the housing loan issues were.

A Project Manager that I sort of know is losing her house to the bank. As a single mom she is desperately seeking a solution to her dilemma.

But here is the catch...

She is single with one child.
She makes (I am guessing here) about $60K annually.
She got a mortgage with $0 down at a good rate, but she got an INTEREST ONLY loan for 5 years for a $400K home.

Now the interest only is over and the principal comes into play, and there is no way in God's green earth this woman will EVER afford the home. The true problem is she NEVER could have afforded the home and NEVER should have even considered the home in ANY capacity.

Yet this College educated (Masters) woman still feels that someone should help her keep this home.

As sad as it is, there are situations such as this abomination that there is no way to save it. Her own naivety screwed herself over. Yes the checks and balances at the mortgage company should have prevent such a loan from ever being approved, it is still up to the individual to maintain financial responsibility.

— Agent009 (View Profile)

Posted on 11/17/2008 1:26:41 PM | | Votes: 6   

09CTSVforMe

What is the WORLD made a single mother making $60k per year think she could even remotely pay for a $400,000 house?!?!?

THIS is the problem with this houssing crisis. A person in that situation should be shopping for $100,000 homes, not $400,000 homes.

No personal offense to her, but she seems to be exactly why I don't put much value on a person's intellect just because they have a degree. A Master's and she couldn't figure out $60,000 vs. $400,000?!?

Wow. That's a shame.

— 09CTSVforMe (View Profile)

Posted on 11/17/2008 5:31:44 PM | | Votes: 4   

Bored

@ Agent009,

Gotta be Cali (...or NY state) if the home's that expensive.

@ 09CTS,

Please don't take this the wrong way, but don't be so quick the judge this lady's intelligence. Yes, it's wrong to be in that situation. But you need to remember that there are millions of people in this world that will do questionable things for the sake of doing what they think is best for their children.

Maybe the father is a dead-beat, a felon, deceased, suffers from a physical/mental disorder due to an accident, and/or just flat out is a good soul who has the absolute worse luck. Any decent single parent is going to try to do whatever is in their reach to give their child the best possible situation to grow up in. It's human nature.

Again, you are correct to be upset that there are a lot of individuals who abused the system "trying to keep up with the Joneses" and have contributed to the current recession. But I seriously think this lady was just trying to do the right thing not for herself but for her child.

— Bored (View Profile)

Posted on 11/17/2008 11:13:28 PM | | Votes: 0   

DR1665

It would seem that America is faced with two options these days: We let companies fail and deal with the repercussions of being responsible for our actions right here at home, or we just socialize industry in general. The flood gates have been opened thanks to the inactivity of the American people to voice their opinion. Perhaps there was a new episode of "Deal or No Deal" on the night the representatives were expecting all those calls one way or the other. Don’t know for sure, but the more free money is being handed out to those who have squandered good things, the more sloppy organizations there will be getting in line for their piece of the pie.

Whatever happened to “only the strong survive?” Why do we, as Americans, have such a fascination with the notion of everyone getting a trophy and being successful? It used to be that hard work was rewarded. Today, it’s more like being the biggest cry baby always wins out.

— DR1665 (View Profile)

Posted on 11/17/2008 1:21:12 PM | reply to this comment | Votes: 3   

mscottc1

AMEN, I couldn't agree more.

— mscottc1 (View Profile)

Posted on 11/17/2008 1:42:52 PM | | Votes: 1   

woood

The guy who sold and approved the loan of the woman with an MBA should be fired and his boss and his boss's boss all the way up should have their finances/bonuses/executive salaries, etc. investigated and charges files against them for greed.

— woood (View Profile)

Posted on 11/17/2008 10:56:08 PM | | Votes: 1   

woood

It takes 2 to tango.

— woood (View Profile)

Posted on 11/17/2008 10:56:39 PM | | Votes: 1   

candywhite

The problem i think lies with the american people.

Everybody has this distorted though that everything is owed to them cuz they are all so great.

Seriously, America got its image because of its hardworking people back in the 50 and 60's. And because everybody could make a good living aslong as they... and watch out here it comes... WORKS HARD.
Not buying houses they cant afford and then whining to the goverment to bail them out.

If you want socialism go to europe. I came from there and i dont like it. I dont like sharing 40-60% of my paycheck with the goverment to support the imbecile.

America is about CAPITALISM.
Thats why it was so GREAT.

Socialism isnt an option.

If they are gonna govermentise everything the way they are im heading back to europe, cuz they have 60+ years of experience and are slowly seeing on how it just is all gay.

— candywhite (View Profile)

Posted on 11/17/2008 1:38:16 PM | reply to this comment | Votes: 3   

EL34

"100 Auto Suppliers Now Want Access To $700B Bailout"

They can go to hell!

— EL34 (View Profile)

Posted on 11/17/2008 1:55:36 PM | reply to this comment | Votes: 1   

WorldofLuxury

That looks like GM's Hy-Wire concept, just fyi (;

— WorldofLuxury (View Profile)

Posted on 11/17/2008 8:17:44 PM | reply to this comment | Votes: 1   

woood

Here's a thought, why not offset cars for parts delivered by the auto parts manufacturers as payment? Of course at a discounted price. Then the parts makers sell these cars off at a little profit and everyone gets paid and cars at dealer's lots gets sold. Just a thought.

— woood (View Profile)

Posted on 11/17/2008 10:59:56 PM | reply to this comment | Votes: 1   

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