Big Three Bailout. What about just buying a lot of cars?

[edhopper]

If they gave people a $10,000 coupon to by a fuel efficient car, $10 billion would buy a million cars. Wouldn't a million more sales bail out the Big Three?

$5,000 would mean 2 million cars, Ford's total sales this year.

[formercia]

1. And require that they be small, fuel efficient models.

None of the shenanigans that allowed people to by Hummers.

[marketcrazy1]

2. the simple answer

to your question is - NO!

[razors edge]

3. But then the auto companies

would have to actually produce something for the money they are going to get.

That defeats the whole purpose.

[formercia]

4. They want to turn the bailout into instant profit

so they can up the value of their stock and pass and dividends to shareholders.

[razors edge]

5. Yup.

They want to make money the old fashioned way, steal it.

[edhopper]

6. I didn't ask why

they are going forward with the current plan, or why the Big Three wouldn't want to do this.
I asked why this wouldn't be a better option.

[crispini]

7. Hell, I'd buy a car. I need one.

A $10,000 check towards a car would go a long way!

[msongs]

8. cars are overpriced - when prices fall drastically, sales will improve

it's the supply and demand strategy big business loves so much. so offer your local dealership half price and tell them they oughta be glad to get it lol

Msongs

[Fovea]

9. If you believe that the sum of the problem

is that not enough people are buying cars.

The current oil price is a canary in the coal mine.
When the world economy starts rolling upward, look for gas
prices to leap ahead of demand.

Any solution that decreases energy independence throttles the infant in the crib.
While the new cars may be more fuel efficient, though without the draconian requirements of a federal bailout I dont see that happening,
the net effect on the economy would be to spike fuel demand.

As I have said since the beginning of this mess, the big three need to be set to making high speed passenger rail everywhere, before we climb back up on the
oil consumption merry-go-round. Because the merry-go-round stopped being fun a decade or three ago, and we just keep turning up the speed.

We simply have to change rides now if we want to keep the economy from throwing up in our lap again.

[TexasObserver]

10. When they're willing to zero out all stock and fire all managers, we can talk.

Until the stockholders have lost all their equity, and until all the current top management are gone, any bailout of any auto manufacturer is premature.

We've already done that with the banks, and it was a gigantic fraud that has accomplished little for the public.

[edhopper]

11. That should

be part of the deal. The $10,000 wouldn't be no strings attached and could be directed at only high fuel mileage cars.