[lbo-talk] GMAC, Cerberus, and ResCap

Doug Henwood dhenwood at panix.com
Thu Nov 20 07:31:55 PST 2008


On Nov 20, 2008, at 2:14 AM, John Harp wrote:


> Can someone explain why Detroit's subprime investment's have NOTHING
> to do with today's hearing or the requested handout? I just don't get
> why every comment about it is either about 1)armchair speculations on
> how to be a detroit ceo 2)cheap shots at the uaw.

No one said they have nothing to do with the industry's problems. But for years, gains in finance offset losses in vehicle production. Now there are losses in finance too.

On your numbered points, you do have to wonder how the US auto companies' management have been so bad for so long. And, to be honest, it's going to be hard to get a lot of working class solidarity for the rescue of the UAW; how much sympathy would a Walmart worker have for someone making $50-70/hour?

Doug



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