It's a big week in congress. Do we bail out the overpaid, underperforming auto industry? I find it ironic that the politicians are split on the issue, but if you think the housing and financial sectors are bad, just wait and see what today's stock market does (posting this on November 20 at 8:20). I suspect there will be a lot of deep downward movement today. Housing sales in the middle class will come to a complete standstill, new contruction will stop, and housing values will sink to levels of the 40's if not the late 20's. I'm not that worried about foreign car sales as the mass hysteria that ensues will result in foreign cars being run off the road. The problem is your new car will be a Tata GM- Tata is the Indian Car Manufacturer. (mark my words, one way or another Tata motors will buy something in the U.S)
Just incase you're on the fence....I think a quick look at some of the policies of the past 8 years might help explain why congress has no choice but to choose the lesser of two evils. The domestic auto industry did not go bankrupt without a litte help from the Bush administration. As a matter of fact, General Motors of China is a thriving business...they sell twice as many Buick Regals in China as they do in the United States. Ask any Chinese person why they buy GM and they answer quality. How ironic. Check it out for yourself.
So why is it that congress owns some of the responsibilty for the current state of the auto industry. Here's a look at the current trade deal with Korea. Yep, congress totally screwed the auto industry. Quality and cost of goods had nothing to do with it.
Here is a excerpt from the U.S -Korea trade deal.
Moreover, in 2006, South Korea shipped 700,000 automobiles to United States as compared to only 4,000 exported to Seoul. The US has an $11 billion global trade automobile surplus deal with South Korea. The figure comprises 82 percent of the entire deficit, which is expected to increase from $750 to $800 million per year.
Yes congress, maybe the executives of failing companies should trade the private jets for commercial tickets, but when you make policies that stack the deck against the entire U.S population don't grandstand on tv like it's the industry is 100% responsible.
So go ahead and screw me for another 25 billion so I can keep selling houses to people who actually have jobs in the U.S.
Just in case you still have a job and want to buy a house in Palm Beach Gardens please click the link.