Three Million US Jobs At Stake|Payday Loans In Uncertain Times

Many Americans could be facing rough times ahead, and payday loans may be a viable option. Millions of jobs are at stake if the three big auto giants go under.

DANGER OF RUNNING OUT OF CASH

Chrysler LLC, General Motors Corp., and Ford are all in talks to try and access 14 billion of the 700 billion allocated funds in TARP [Troubled Assets Recovery Program] to avert “running out of cash” and certain bankruptcy. Perhaps a payday loan might be in order. Initially, the Bush administration was hesitant to intervene, stating through White House Press Secretary, Dana Perino, that “we would prefer that markets would determine the ultimate fate of private firms.” However, with a troubled economy and Congress immovable, the Bush administration declared that it would step in and prevent the “precipitous collapse” of the U.S. auto industry. That certainly was good news to GM and United Auto Workers President, Ron Gettelfinger, who welcomed the president’s comments. Without intervention, certain disaster for the auto industry looms on the horizon.

“IMMINENT FAILURE”

That’s what Treasurer Brookly McLaughlin said the White House was prepared to prevent when being questioned about Congress’ inability to act. Many hundreds of thousands have already been laid off from their jobs according to the government’s findings in the month of November alone. And it couldn’t come at a worse time. With the current state of our economy, the troubled auto giants aren’t helping Wall Street with their jittery nerves.

GLOBAL IMPACT

The “Detroit’s Three” has global impact. If even one of the major U.S. car companies went under, the effect would extend around the world. From part makers, to painters and suppliers – - it’s not a pretty picture. In fact, it would not only cost our economy billions, it would have far reaching ripple effects throughout our nation and all its related industries. That would translate to the rest of the world which in turn would weaken their economies, especially for Europe and Japan. BASF, the world’s largest chemical company, is already feeling the impact by suspending operations at 80 different plants affecting 20 thousand workers. Edmunds.com, a website that studies the auto industry, has pointed out that other industries are at risk. Smaller, regional companies supply the workers for the auto industry with, for example, gloves or goggles. Obviously, these are items that do not go into the making of a vehicle, but the workers need them to produce cars. It has tremendous capabilities to be far- reaching. Carlos Ghosn, executive officer of Nissan, has stated that car manufacturers are will need to think about “preserving cash…lowering inventories, and reducing head count [employees].” With uncertain times, payday loans may be the buffer between security and the unknown.

WHAT HAPPENED?

It was a perfect storm with the combination of stringent state and economy fuel standards, the recent credit crisis, and fuel costs. With the government’s appointment of a new “car czar,” our government is moving into unprecedented new ground. The government will be able to regulate anything from “executive compensation to corporate jets.” The U.S. has invested in our industries in the past, from the railroad in the early 1900’s to the aerospace industry more recently; so it’s not unheard of, however, not quite to this extent. Much of what will be laid out most likely will be by the incoming Obama administration.

DON’T RUN OUT OF CASH!

Learn from the “Big Three,” and avoid disaster. Consider protecting yourself from unexpected shortfalls with payday loans.