Oh’s Zany World

Why bail the car companies out?

February 22, 2009 on 5:03 am | In Oh Yeah, Poly Tics | No Comments

Why bailing out the car companies won’t help the economy.

 

We hear a lot about the need to bail out the car companies.

But we don’t ask we they need to be helped. The assumption seems to be that if we give them money to build new cars all will be fine and people will buy the new cars that they build.

 

To see why it won’t save the car companies we need to ask ourselves a some questions:

 

1.     Why have people been buying so many cars in the past?

2.     Do people really need to buy a new car every 2 to 3 years?

3.     Do most people that buy a used car need to buy a new used car every 2 to 3 years?

4.     Is it possible that by thinking that there was a need to buy new that often that people were buying beyond their means?

5.     Is it possible that the car manufacturers were expecting, something, that was not sustainable in the long run?

6.     Should we have looked when interest rates on vehicles went down to 1 to 2 percent and even zero percent, to seen if something was wrong with the car buying model we were using?

 

I am not going to give the answers I believe are correct. I am just going to put these questions out there, that you may have something to think about.

 

A shopping we should go,

 

OH

 

 

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