Sunday, November 30, 2008

State of the Economy and American Manufacturers

The state of the current economy and the financial worries with the "Big 3" Auto Makers got me to thinking. A couple of years ago I found myself in serious financial troubles and I knew that the situation that I had gotten myself into wasn't one that was going to be easy for me to get out of. I really only had a couple of options and the one that I chose luckily turned out to be the best for me. I had gotten myself into a high interest car loan, had thousands of dollars worth of credit card debt and had creditors calling on a daily basis. The only option for me was to voluntary give up my car which is the same thing as a repossession and then file for bankruptcy. The first six months were very tough, but with less money coming off of my bottom line I was able to finally start saving and then get myself into a nice used car at a "Buy Here Pay Here" lot. After a year or so of paying on that loan, I was able to qualify for a loan for another vehicle that was much more dependable. The bottom line of this story is that maybe the "Big 3" need to hit rock bottom before they can realize their mistakes and learn how to live wiser and more efficiently. In my opinion, I truly believe that Ford will be ok because they have 2 really popular vehicles which are the F150 and the Mustang. The one that I worry about the most is Chevrolet because they have gotten so far away from who they are, that they sort of lost their identity. I don't think that saving the auto makers is the answer. In this case the answer may be just to let them try to correct their own mistakes. Unfortunately, in the process hundreds of thousands of people may lose their jobs. I think that if the government does bail them out they will not truly learn what they have done wrong and things will not really get any better. What do you think? Do you think this is the fall of some of our corporate giants?

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