This fellow is rather naive. There is a purpose to the jobs bank that helps the company run better - keeps its workers through cyclical changeovers of car models. But there is little purpose to some other upcoming payments. The Senator who came close to establishing the compromise understands this.
#1 issue is GM's upcoming payment to the Union to create an off balance sheet healthcare company for RETIRED workers. Yes, GM runs around today, as does the Union, telling all how they lowered their employee costs. But a good chunck of the "lowering" hasn't been paid for. A $6B check needs to be written in '09 for the '08 negotiation creating the off balance sheet healthcare for RETIRED workers.
Yes, the American taxpayer, so far, is being asked to provide better healthcare, for RETIRED GM workers, then they themselves are promised.
You didn't know this? Ask your Congressional representatives why they didn't tell you. If they babble on, slap 'em, wake 'em up, and make sure you don't create a blueblood retirement class because you were so stupid and slug like to accept what Govt is about to do.
Then ask them about the $4B they gave to the Fiat family a few years ago. After the babbling, ask for a clawback on executive comp BEFORE taxpayer funds are provided to the management team. Do you know that all executive retirement plans are fully funded, separate from the partially funded employee ones (which the Govt insures with your money!)? Why are the huge executive awards not on the negotiation table? Yes, those payments were made in the past, but they were just as uneconomic as the one employee plan I tell you about above. If they want funding by the taxpayer, they too have to give up their ill gotten gains.
I wonder what this Brit thinks of his own country whose currency in the past year has imploded against both the USD and EUR. The author reminds me of Alpha, always throwing rocks without checking his glass house.
Yo duck... the short answer to the prospect of a massive decline in the American dollar is "So What"... as related in an earlier article. Imagine that? People are so jaded and just so totally absorbed by a miriad of distractions all the time that they simply express themselves by saying 'who cares'? They are in effect saying... 'there's nothing we can do about it, let it happen.' If they can't wish it away, they will just ignore it. Petty amazing that when there's a mess to clean up, nobody wants to bother with it. Is that an overstatement of the 'fat and lazy American syndrome', or what? If I have been doing all the right things for my family, I'm thinking we might have some hope of surviving the worst of it. I love my family, but the average American can't seem to look at their unwillingness to do something about a fast approaching financial collapse, that they don't want to face the fact that they are turning their head and like everything else they do nowadays, is ignore the problem. If they were asked whether or not they love and care about their own family... those little helpless kids who need them... would they deny them and say 'there's nothing we can do'? Well... I'm afraid that's exactly what they're doing, by not facing their own demons of willful neglect through ignorance. All I've been able to do beyond saying my peice here, is saying my prayers to the Almighty God for His help and guidance for those that don't know what to do. A few hundered dollars to people by the incoming president isn't going to be any help and is going to be just one more nail in the coffin via higher taxes. STRIKE ONE for the new guy in the presidential hot seat.