The spiel...

I am on the list for GM suppliers.  I found this message very interesting.  Much like the financial crisis, little is understood about the problems plaguing the automotive industry.  Like it or not, a sizable portion of our economy relies on this industry.  We depend on it for mobility, jobs and upstream and downstream industries.  I thought it best to share to give some additional insight as to how our nation relies on the free flow of capital.

---

From: GM Supplier Discount [mailto:GM_Supplier_Discount@email.generalmotors.bfi0.com]
Sent: Tuesday, November 18, 2008 10:02 PM
Subject: An urgent message to GM suppliers

	Because our futures are linked, I want you to know that General Motors is doing everything possible to deal with the impact the financial crisis is having on the domestic auto industry. Yet despite our successful efforts to restructure, reduce costs and enhance liquidity, we are facing an uphill battle with the current administration and Congress in securing a bridge loan. That's why we need your help now. Simply put, we need you to join us to let Congress know that a bridge loan to help U.S. automakers also helps strengthen the U.S. economy and preserve millions of American jobs. Despite what you may be hearing, we are not asking Congress for a bailout but rather a loan that will be repaid. The consequences of the domestic auto industry collapsing would far exceed the $25 billion loan needed to bridge the current crisis. According to a recent study by the Center for Automotive Research: • One in 10 American jobs depends on U.S. automakers • Nearly 3 million jobs are at immediate risk • U.S. personal income could be reduced by $150 billion • The tax revenue lost over 3 years would be more than $156 billion Discussions are now underway in Washington, D.C., concerning loans to support U.S. carmakers. I am asking you to support this vital effort by contacting your representatives. Please take a few minutes to call your representatives by dialing 1-866-471-5332. Just state your name and address, and your message will reach your legislators. You can review a script that will help you state your support at gmfactsandfiction.com. Under the "Mobilize Now" section, click on "I'm a Supplier." If you would rather e-mail your representatives, use the link "I'm a Concerned American." Please share this information with friends and family using the link on the site. Thank you for helping keep our economy viable. Sincerely, Troy Clarke
	The marks of General Motors, its divisions, slogans, emblems, vehicle model names, vehicle body designs and other marks appearing in this email are the trademarks and/or service marks of General Motors Corporation, its subsidiaries, affiliates or licensors. ©2008 GM Corp. Buckle up, America! General Motors Corporation 100 Renaissance Center 482-A00-MAR Detroit, MI 48265

Media doesn't get it...

I'm mad as hell and I'm not going to take it anymore!

The M3O (Mass Market Media Outlets) have contributed more hysteria, misunderstanding and confusion to the current financial problems than the entire membership of the FASB. I am no longer going to use the term "main stream media" anymore as it no longer adequately describes the reach of mass market media. All throughout the problem period these past few weeks, the M3O mischaracterized the proposed stabilization plan (a better term than rescue or bailout) as a free ride for a few market insiders and corporate entities. In reality, the proposed plan was a purchase of radically discounted equity in a market stalled by the burden of toxic debt (meaning high risk and even some default). At no point was the federal government going to give a handout to anyone.

A concerned citizen, with a modicum of ability, could have easily begun to piece together the origins of the crisis and the basics of the possible resolution. What happened was that every talking head, pundit, news outlet and other mass market outlet started screaming about "bailouts" and "interfering with the free market" (as if the onerous regulations of SARBOX, the SEC and cruel mark-to-market accounting rules are not interference enough). The American public, rightly concerned about funding a program with no hope of return pressured their infinitely malleable congressional representatives and the whole initial house of cards collapsed in a flurry of grandstanding.

Add to the sound and fury the din of angry liberals/conservatives, goldbugs and TLC conspiracy freaks and the public all but stampeded to halt any meaningful action on the crisis. If the American public (read rest of the world) can not grasp the basics of a global economy and why having free flow of capital and credit is important, then having a hysterical media harp about "free rides" and other ridiculous comparisons will not aid that understanding. To be fair, the government did nothing to help educate the population on the issue. I am not sure that anyone would have believed them, but at least make an effort!

Our society has become extremely complex. Every action has implications far beyond expectations (for good and ill). And yet we are making decisions largely from a place of fear and emotion. As citizens we owe it to ourselves and our society to be as educated on the facts as possible. Almost nothing offered by the M3O is of any value. The details we must understand are challenging to grasp and open to interpretation. Taking a purely partisan approach (whether ideological or philosophical) is ridiculous and dangerous in the extreme.