Friday, November 28, 2008
So Congress Gives the Big Three the Dough, But...

A strange thing happened earlier this summer. Gas prices rose to some of the highest prices seen in this country's history. Higher gas prices slowed down the auto industry. Many cars sat on the lot. Trucks and SUVs experienced the curse of under 20 miles per gallon and sat dealers' lots throughout the summer. Smaller cars sold, and that's a problem. Trucks and SUVs are where the largest profits are made--not small economy cars. So Congress gives the Big Three to dough, but what happens next summer when gas prices rise again?
Sure, gas prices are down now. In southwest Missouri, gas is marked $1.51 a gallon. I am enjoying it while I can. In two months, Obama runs the show, and Nancy Pelosi and Harry Reid will compete for attention. When America elected a Democratically controlled federal government, they insured gas prices will remain high. I bet they will reach levels that make us wish for last summer's prices. I predict you will see $6 a gallon at the pump.
Remember, Obama wants to label carbon dioxide a dangerous pollutant. Pelosi has invested in windmill technology and she wants cars off the road. If the Democrats continue their anti oil policies, the auto bailout amounts to nothing more than a bandage on an oozing wound. When fuel prices begin to soar next year, cars and trucks will once again sit on lots. Come next fall, the automakers will be right back to where they started--in trouble.
Of course, Pelosi's plan is to force the automakers to make cars we don't want and don't meet our needs. This is not going to solve the issues facing Detroit. These cars have always provided the automakers with little profit. Have you noticed lately the attacks on the SUV now includes the pickup truck? The family car won't be far behind now. Enjoy the days you have left of taking your entire family on vacation in the family car. Those days are numbered.
Congress will bailout the automakers, but they won't provide an immediate solution to the energy problems that plagued the industry. Detroit faces more than just solving UAW wages, benefits, and pensions, it must deal with the insanity of government and the self interest within. That's two strikes. It's a full count, and the next pitch will be perfectly placed in the strike zone. Makes you wonder who's at bat, doesn't it?
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"Clay, I am proud to have made your acquaintance, and also know you are a committed patriot who's not just messin' around! Thank you!" - Doug Burlison, Springfield, MO City Councilman
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There are more fundamental problems with the way the auto industy operates, as with most industries in this country they are overextended due to there over use of credit. The worst thing they have done is to create disposable cars. This has made the auto market bigger than it should be by requiring the replacement of the average car far more often than in times past. You can pretty much forget about repairing your car if in anything other than the most minor of accidents, gone too are the days when the average person could do the maintanence on their own vehicle. Most don't realize that you can buy a 20 year old car, repair it, update it's safety equipment and have on the road for far less than what a new car cost.
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