Bloggy Business Today

It was announced that the U.S. government is in its final stages of perhaps providing a $15 billion proposal to save Detroit’s car industry and avoid the collapse of these three automakers. General Motors and Chrysler are the ones in dire need of financial assistance to avoid bankruptcy while Ford just has not yet pushed the panic button and just wants some assistance just in case business does not pick up.

As far as the financial assistance that is being given, it shall be taken out of the taxpayers’ money. But hold on. Isn’t that fund the same as what the laid off employees were being deducted off when they were connected with some of these companies? The big three have cut off thousands of workers and while that did not draw much attention it looks ironic that they will be the ones who technically rescue these automakers and allow the millionaires survive for another day.

Prioritizing the economy’s state and the businesses that evolve around it is understandable. But what has the government have in store for the laid off workers who are now facing problems as far as surviving in the financial part of their lives?

The scenario does indeed look weird. A lot of people are in need of help. But as of now, it seems that the millionaires are getting the aid over the not so fortunate ones. Are we sure the owners of these large auto companies are really in need of help or just don’t want to infuse money to their companies so that they can invest it somewhere else.

These are some things you should ponder on folks. Business is still a dirty game and the wealthy know how to play it wisely.

The bailout is designed to allow GM and Chrysler to avert threatened bankruptcy through March with short-term loans. Ford Motor Co is not requesting immediate help but would like a line of credit in case its finances worsen.

Lawmakers fear if automakers collapse, it would deepen the U.S. recession. But many say market forces, not a government saddled with a record deficit, should determine their fate.

There also is reluctance to provide another federal rescue in the wake of the voter backlash against Congress for its passage of a $700 billion bailout for Wall Street in October.

At the same time, many argue that if Congress provided relief for millionaires in the U.S. financial industry, it should also help blue-collar autoworkers facing unemployment.

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[tags]short_term_loans, ford_motor_co, auto_companies, ford_motor, car_industry, automakers, bailout, millionaires, financial_assistance, recession, general_motors, lawmakers, chrysler, taxpayers, bankruptcy[/tags]

The “Big Three” have laid out their needs and have declared that if they don’t get any financial help soon, they may just be closing shop. Is the U.S. government listening? Unless they have earplugs on, the closure of the big three: General Motors, Ford and Chevrolet, could be the worst economic development the U.S. has ever faced and from all indications, they would do well to heed their call.

The Detroit automakers on Tuesday urged Congress to authorize $34 billion in loans and credit lines, far more than the $25 billion they failed to secure in November when lawmakers demanded the companies offer plans showing they could be made “viable.”

The development came on the same day that GM, Chrysler and Ford Motor Co posted a drop in combined U.S. sales of nearly 40 percent for November and warned that the world’s largest vehicle market showed signs of tumbling further in 2009.

The government has been put in a fix following the worst economic crisis ever to hit the country since decades ago. The pressure is mounting and though some sources say that help is on the way, hopefully it will not be too late to bail out the big three from impending closure or worst, bankruptcy.

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[tags]detroit_automakers, impending_closure, ford_motor, economic_crisis, financial_help, general_motors, economic_development, chrysler, chevrolet, bankruptcy, ford, congress, loans[/tags]

While many of the companies are falling, the long-time loyal investors are pulling out one by one. With that in mind, stock price indexes are falling and everyone is panicking since it is a sign of the worst case scenario that has befallen us from past centuries. Indeed, the stock plunge is disturbing. But on the other hand, if you can spare some cash, try investing in some good stocks that are now available at great bargains.

Now investing in them will not immediately reap dividends. In fact, they should be considered as long-term investments. The financial crisis is upon us but will soon pick up. The only question is when. But if you have spare cash or money in the bank that is just sitting there, why not make a wise investment that you can cash out after some years?

Now this is not gambling. It is following the trend of what goes down will always go up. Time is the only thing that will differ but would not it be nice to see investment in stocks like let us say Microsoft or Sony suddenly skyrocketing more than double once this whole mess gets settled?

Give it much thought. It doesn’t have to be blue chip companies. More or less you know which are the promising companies. Do not be afraid of them falling or filing for Chapter 11 or bankruptcy. If that were the case, they would have done so already by now.

[tags]worst_case_scenario, stock_plunge, blue_chip_companies, loyal_investors, price_indexes, term_investments, money_in_the_bank, wise_investment, stock_price, chapter_11, financial_crisis, dividends, centuries, bankruptcy, bargains, stocks, long_time, sony, microsoft[/tags]

Before, they called it the financial bailout, the much heralded branding for the financial mess that seems to has plagued the whole world in light of the shortage in funds and over-lending that has seen most banks and financial institutions dance with potential bankruptcy which has already claimed a couple of big names today.

With that said, we see that an influx of cash reserves playing in the trillions of dollars or more are being done. But is it really the wise decision to make? Stock traders are rejoicing since the 2-day rise in stocks which went as high as 11% seems to be signs of good things to come. However, did we not see the same trend when the first installment financial bailout was planned and implemented?

The problem has gone as far as affecting Europe and Asia. We have seen the threat of recession and global financial disaster and from the looks of it, it is really imminent. So how do we avoid it?

Save and spend wisely. Much of the bad debts stem from people who simply look beyond their income. We all want large investments in cars and homes but we should know the capacity to pay and not forge documents required just to attain such a luxury.

Put money in safe investments or lockups. No one can say when their income or cash reserves will be used up. People are investing a lot but it would be wise to take your time and study where you will put your money. Do not be fooled by figures. Check out historical data and the credibility of the institution where you are placing your assets.

Lastly, make your own analysis of the economy today. We see different opinions, positive and negative, regarding the world economic situation. For sure, each of us have our own presumptions. Listen to it and do what you think is right. There is no consistent reason and depending on your lifestyle, it would be best to follow your philosophy.

[tags]financial_bailout, world_economic_situation, bad_debts, financial_disaster, financial_mess, stock_traders, cash_reserves, wise_decision, financial_institutions, trillions, influx, recession, credibility, bankruptcy, investments, assets, stocks, banks, philosophy[/tags]