"Keith nuttle" wrote in message
...
Keith nuttle wrote:
Charles Momsen wrote:
This article:

http://www.telegraph.co.uk/news/worl...m-economy.html

says US carmaker failure could cut 4% from the GDP. But the cost of a
bailout is no less than 6% of GDP!

No brainer!

Let them go bankrupt!

I believe this underestimates the effect. While the loss caused directly
by the personnel working for the big 3 maybe only 4%. There are other
losses that are not being considered. In an area like Indianapolis there
are many business that are dependent on the auto industry. The prepared
food industry will be hit hard as layoff will directly effect them.
There are similar industries that will be effected that are several
generation removed from the company manufacturing cars.

The other cost is a general cost. When polosi caused the failure of the
first bailout bill the market lost about 30% in 15 days. The market has
not recovered. I have seen data indicating that if the auto industry is
not bailed out, the stock market will loose another 2000 points. As I
remember about the time of polosi's tantrum, 401k plans had lost nearly 4
trillion dollars. With the subsequent losses in the market it is many
times that in all of the companies that have been effected by the
democrats bad mortgages, and the lack of credit.

Just for the record the market lost another 6% today. That is another
2000 points since election day. It has now lost nearly 50% of its value
since the end of polosi's 100 days. I believe that is slightly more than
4%GDP Every day that congress drags its feet the market suffers.

The 50% is the largest losses since the depression in the 1930's when the
market lost 80% of its value, and the only thing that turned it around was
a war.


It must be Obama's fault. After all, he's not the president. Dick (I've been
indicted, along with my buddy Al) Cheney is.

Too bad the judge didn't issue an arrest warrant. He's clearly a flight
risk... he might go to his undisclosed location. LOL

--
"j" ganz @@
www.sailnow.com