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November 27, 2009

Auto Bailout

The only auto companies that need the bailout are the "big three" although they are technically not the big three anymore. Toyota has more American content in its trucks than Chevy or Ford. The problem was greed, same as the financial sector. When you look at the product line that GM and Ford have you can clearly see that they wanted to put all their eggs in one basket, that of the SUV. Despite predictions of fuel shortages (and you're kidding yourself if you think they didn't see that coming), environmental concerns and the fact that aging baby-boomers don't need a big rig they just want cars, these guys still focused on SUV's. Why are Honda and others not having the same problem? That is the question. These companies, and banks made greed based bad decisions and now we, you (I'm Canadian but if affects us too) have to pay for it. You cannot give mortgages on a wink and a handshake and you cannot continue to pump out vehicles nobody can afford to drive and not think you will have a problem down the road. I feel bad for the workers who do their best everyday to make the best product they can. They will be the ones who suffer here, not the CEO's with their insance pay. Good luck to us all.

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