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.

As Americans, it is our fundamental right to have our voices heard; this includes what we have to say about the auto bailout and our access to payday loans. Americans care about the auto bailout because it has everything to do with our tax money. Budgets are tight, so Americans are extremely vigilant about where their tax dollars are being spent. Americans are also concerned about their financial freedom. Some states are eliminating access to payday loans, which in essence, is eliminating financial freedom.

Auto Bailout

The Big 3 auto companies are struggling to remain above waters

The Big 3 auto companies, GM, Ford, and Chrysler, are begging Congress for money to help them avoid bankruptcy. The Big 3 are up against more than just Congress. A recent CNN poll claims that 6 out 10 individuals are opposed to the auto bailout more than half of the people polled are not in favor of bailing out the nation’s biggest automobile companies. Opposition increased when Americans learned of the poor performances by auto executives, and the private jet they flew to get to the Congressional meetings. Opposition to the bailout can be found across the nation, including the Midwest, where the auto industry employees thousands of Americans. With such widespread disapproval it will be interesting to see which way Congress votes. What do you think about the auto bailout?

Is the Government Listening?

Many Americans have absolutely no interest in saving the country’s major auto companies, but the auto companies are desperately pleading their case. On the contrary, many Americans are interested in preserving their financial freedom, including their right to payday loans, while several politicians are trying to eliminate payday loans nationwide. There is something wrong with this picture: Americans don’t want to bailout the auto companies because they would like to see their hard earned tax dollars go towards a more legitimate cause. Yet, the government is considering granting the Big 3 their bailout wishes? And Americans want to preserve payday loans and financial freedom. Yet, the government is trying to abolish payday loans? It sounds as though the government isn’t listening.

Use Your Voice

No matter what the issue is, Americans have the right to be heard, and Americans are catching on to this. If we want something bad enough we will use our voices to get it. Take this year’s election, for example. Our country desired change, and there was a record turnout for the presidential election. Barack Obama was elected president, due in part to his promise for change. Obama will surely bring big changes to the United States, but it is unclear if those changes will positively or negatively affect Americans. Obviously, the majority of the country believes Obama will bring much needed, positive change. He wouldn’t be president otherwise. However, Obama is one of the many politicians that would like to eliminate payday loans nationwide. You used your voice to put Obama in office, now use your voice to tell your president that you want to keep your financial freedom and your access to payday loans.

The guys in the boardroom may stink – but we shouldn’t take it out on the workers

The Big 3 of Michigan have certainly messed up over the years – they gave us so many lemons like the Edsel and the Pinto, just to name two, and then they crammed the gas hog SUV’s down our throats with gas prices skyrocketing all the while, forcing people to get quick payday loans just to be able to drive to the bank to remortgage their home to fill up the tank. However, they still employ thousands of people that work in their factories, work with dealerships, designers and engineers, and financing staff. These are institutions of American industry, of American culture – two of the most famous sports cars of all time are the Corvette, and the Mustang, both made by GM/Chevrolet and the Ford Motor Co. There have been controversies, yet there have also been great triumphs. GM, Ford, and Dodge (a division of Chrysler) were all prolific producers during WW II, building tanks, planes, trucks, and equipment at an unprecedented rate that couldn’t be matched by any other nation in the world, even the efficiency obsessed Germans. Certainly, they were valuable then.

Just because they have grown decadent, doesn’t mean they can’t get back in shape
True, they haven’t exactly performed their best as of late. However, if they are allowed to die off, then there would be a loss of almost $200 billion in revenue each year, from each company – $600 billion taken out of an already troubled economic climate. That’s a recipe for disaster. Also, what about the 2-300,000 employees that makes up the total workforce of the Big 3? The unemployment rate is already up, and that many more people out of work of what are middle class jobs – Ford, GM, and Chrysler are union plants, and workers make over $20 per hour – would be a crippling blow to the economy of the entire upper Midwest. The manufacturing base of the United States would be all but gone, as small as it is already. Let us hope that our lawmakers have the sense to give them the quick payday loans that they need, because the emergency funds would do them, and the nation, some good.