I Want a Bailout Too
Where Do I Get My Bailout? 1.
Slowing sales 2.
Cash burn 3.
Growing liabilities 4.
Difficulty getting customers financing 5.
Negative impact on business from declining consumer confidence 6.
Growing inventory due to slowing sales 7.
Negative impact on employees and suppliers if business continues to deteriorate 8.
Poor business decisions, failure to recognize and adapt to changing markets, bloated infrastructure, high level of employee entitlements, etc.
9.
Liquidity issues Other than #8, is this a description of my business, your business, the business next door?At this point in time it is a description of the majority of businesses out there.
Who amongst us deserves a government bailout? Who is to big to fail? Whose failure would create to large a ripple effect on the rest of the economy?Whose failure is irrelevant? Who becomes the arbiter of all of this? If there is a business that exhibits the attributes of #8, does it deserve to be given the largess of the taxpayer so that it may or may not get it right the next time around? The Big Three Unfortunately, the great majority of us are not to big to fail and no one in government is realistically going to come to our rescue if we need it.
The auto companies, hat in hand, will no doubt be given some type of a rescue package so that they can go on.
Is this the right thing to do, or should they be allowed to reorganize after a bankruptcy filing? Auto manufacturing is a very difficult and highly competitive business, particularly since we do not really compete very well with the foreign manufacturers that build their cars in the States as well as overseas, adapt to the quickly changing technology, are facing consumer confidence at multi-year lows, have demand for cars that burn alternative fuels, have bloated cost structures that makes competing on price extremely difficult and the financing crisis that leaves eager buyers unable to buy the cars.
What we, the people need to make sure of this time (particularly since they will be using our money to do it), is that the money given to the auto makers, in whatever form, comes with an incredible amount of strings attached that will force them to make the tough choices and the serious structural changes required so that we will hopefully not have to do this again.
Number one should be that the leadership teams should be replaced because they have proven that they do not have the capability to run these companies successfully, particularly under duress.
Just like you and I have got to do without a government bailout, auto companies need to get lean, get mean and make good business decisions.
Is that to much to ask?
Slowing sales 2.
Cash burn 3.
Growing liabilities 4.
Difficulty getting customers financing 5.
Negative impact on business from declining consumer confidence 6.
Growing inventory due to slowing sales 7.
Negative impact on employees and suppliers if business continues to deteriorate 8.
Poor business decisions, failure to recognize and adapt to changing markets, bloated infrastructure, high level of employee entitlements, etc.
9.
Liquidity issues Other than #8, is this a description of my business, your business, the business next door?At this point in time it is a description of the majority of businesses out there.
Who amongst us deserves a government bailout? Who is to big to fail? Whose failure would create to large a ripple effect on the rest of the economy?Whose failure is irrelevant? Who becomes the arbiter of all of this? If there is a business that exhibits the attributes of #8, does it deserve to be given the largess of the taxpayer so that it may or may not get it right the next time around? The Big Three Unfortunately, the great majority of us are not to big to fail and no one in government is realistically going to come to our rescue if we need it.
The auto companies, hat in hand, will no doubt be given some type of a rescue package so that they can go on.
Is this the right thing to do, or should they be allowed to reorganize after a bankruptcy filing? Auto manufacturing is a very difficult and highly competitive business, particularly since we do not really compete very well with the foreign manufacturers that build their cars in the States as well as overseas, adapt to the quickly changing technology, are facing consumer confidence at multi-year lows, have demand for cars that burn alternative fuels, have bloated cost structures that makes competing on price extremely difficult and the financing crisis that leaves eager buyers unable to buy the cars.
What we, the people need to make sure of this time (particularly since they will be using our money to do it), is that the money given to the auto makers, in whatever form, comes with an incredible amount of strings attached that will force them to make the tough choices and the serious structural changes required so that we will hopefully not have to do this again.
Number one should be that the leadership teams should be replaced because they have proven that they do not have the capability to run these companies successfully, particularly under duress.
Just like you and I have got to do without a government bailout, auto companies need to get lean, get mean and make good business decisions.
Is that to much to ask?
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