More Bailouts...Now it's American Express

[audtatious]

What's everyone's thoughts on this new trend? The automakers are working with Pelosi and gang to get billions ( and I hear the Unions are part of the negotiations....WTF? ) and now American Express is asking for 3.5 billion:

"American Express Co. which is being hit by slowing consumer spending and rising defaults, is seeking roughly $3.5 billion in taxpayer-funded capital from the federal government, according to people familiar with the situation."

We, the tax payer, are now liable for idiots who use credit cards and the companies that give them credit? Am I missing something here?

[smockers83]

The UAW is probably in the mix because they are set to acquire the health care/pension costs associated with the industry, but in two years. Two years will be too long. The UAW also has to take a step back from their demands and reprice their labor force.

As for AMEX, I'm not really sure. I think you are missing something as am I.

[mattblancarte]

No, you're hitting the nail on the head. This bailout yer' buddies mentality is ridiculous. We should not be forced to invest in these failing businesses.

[marlin29311]

Not AMEX! I like them - they have good customer service and I like my rewards...

FWIW - people should seriously only have like a $2000 credit limit. People have way to much open credit and have no idea how to use it...I like the idea of a charge card - you can't spend more until you pay off your old crap...

[audtatious]

The UAW is probably in the mix because they are set to acquire the health care/pension costs associated with the industry, but in two years. Two years will be too long. The UAW also has to take a step back from their demands and reprice their labor force.

As for AMEX, I'm not really sure. I think you are missing something as am I.

The UAW and such should not be directly in the negotiations themselves as I hear they are. They should be working with the automakers to ensure they are covered, not making sure there is enough bailout money for them to make further demands (which will happen).

[audtatious]

FWIW - people should seriously only have like a $2000 credit limit. People have way to much open credit and have no idea how to use it...I like the idea of a charge card - you can't spend more until you pay off your old crap...

Yeah, it can get crazy. My wife and I both have CC's with over 20k limits and we had to talk with the company to keep them from raising it constantly. The difference is that we pay them off monthly and only use them for trips/vacations, my work travel and ebay/online purchases for protection only. People need to learn to hold off on things they can't afford.

[WDRacing]

Should we bail anyone out? IMO, no. Simply because that's not how free market works. GM should have cut Hummer off 4 years ago. Dodge should stop building trucks that have consitantly had the worst mileage in ALL the various classes. Ford...I don't have any background on their, IMO, bad choices.

If one goes under, the other two will take over the market. Isn't this how our economy is supposed to work? What happened to AMC, AMX, Oldsmobile? They went under...did America implode? No. Will I feel bad for the 2 million jobs that will get the axe, you bet I will. But I'm sorry, it's MY MONEY, not the Fed Gov's. Stop taking from me and giving it to THEM.

Screw AMEX all around.

Enough bailing out

[audtatious]

Hmmmm.....If GM is so bad off then why are they looking to invest more in a China endeavor?

http://www.reuters.com/article...81112

[WDRacing]

China is still a growing market, GM probably wants to invest more with them because of our failing market here.

This reminds me of when Datsun came stateside during the first great depression. Cheap, economical transportation that everyone could benefit from. They were smart enough to read the market, see the needs and have since become Nissan/Infiniti.

The big 3 can struggle like every other bussiness. How many small bussiness have gone under? They didn't get bailed out, neither should anyone else. Unless the Gov can find 700 billion in budget cuts, in which case...bail away.

[dusred]

"American Express Co. which is being hit by slowing consumer spending and rising defaults, . . .

I LOVE AMEX. . . but I think I could tell you why their consumer spending is slowing down. BECAUSE THEY KEEP PUTTING LIMITS ON ALL THEIR DAM CARDS!

Amex is supposed to be an unlimited 30 day line of credit right? And unless you do something to screw it up they will usually leave it open. Recently my employer (just a side note this store has been in business for 25 years and has excellent credit with never a late payment in the business history) had AMEX put a $10,000 limit on the American Express. We were running over $100,000 through there before and now we have switched to other credit cards rather then AMEX. Why did they do this? Beats the hell out of me.

My business that I started 2 years ago, I started it using AMEX as a line of credit to get started. I was running roughly $10,000 per month through there and never made a late payment or did anything to upset them. Well, the other day they called and said they were putting a $600 limit on the card. ? Now I've switched to other credit cards same as my employer's business has.

I have friends who have had the same thing happen on their personal AMEX accounts cutting limits back to $300 and less. AND THEY WONDER WHY CONSUMER SPENDING ON THEIR CARDS HAS GONE DOWN!

Gosh. This is the last thing I expected from American Express.

[audtatious]

China is still a growing market, GM probably wants to invest more with them because of our failing market here.

This reminds me of when Datsun came stateside during the first great depression. Cheap, economical transportation that everyone could benefit from. They were smart enough to read the market, see the needs and have since become Nissan/Infiniti.

The big 3 can struggle like every other bussiness. How many small bussiness have gone under? They didn't get bailed out, neither should anyone else. Unless the Gov can find 700 billion in budget cuts, in which case...bail away.

That's kinda my point. Why are we looking into a bailout of GM if they are simply going to take our money and possibly invest it in something that might not make any money. Same as with the companies who got the 700 billion bailout money and used it for purchasing other companies or paying bonus plans.

[marlin29311]

Hmmmm.....If GM is so bad off then why are they looking to invest more in a China endeavor?

http://www.reuters.com/article...81112

I actually did a senior thesis project on GM - China is probably going to be one of the only ways that GM is going to survive - the Chinese auto market is supposed to double in the next 5 years or so, and there are huge amounts of opportunity for automakers to get their foot in the door to make out well. GM already has a good presence, only behind that of the VW group...

[WDRacing]

The last two posts illustrate the point I was missing. If GM is going to invest in Chinese markets, how is that giving the US more jobs? The US giving them money so they can further invest in other countries to increase their profit margin isn't even remotely fair.

Free market, bad choices = failure.

One thing I wanted to mention. As the prices of gas were steadily going up, just prior to the market crash, the big 3 were putting millions into designing Retro style sports cars that get awful gas mileage. The Challenger, the Charger, the Mustang and the Camaro. Perhaps if they had invested in something else they wouldn't be so strapped right now. But they didn't...and they are.

[96Qowner]

Just as an aside, the only reason the Dems want to offer automakers a bailout is to support the unions, perpetuating the problem.

[audtatious]

One thing I wanted to mention. As the prices of gas were steadily going up, just prior to the market crash, the big 3 were putting millions into designing Retro style sports cars that get awful gas mileage. The Challenger, the Charger, the Mustang and the Camaro. Perhaps if they had invested in something else they wouldn't be so strapped right now. But they didn't...and they are.

Well, we have already given car companies $25 billion in low-interest loans to help them move forward into building more fuel-efficient vehicles. I have heard that that money is locked up in court though so I do not know if they ever received it.....Any input anyone?

[C-Kwik]

They are probably in trouble because they sent out so many of those damned magnets. I have a crap load of them on my whiteboard at home. You would have thought they'd get the hint after I ignored their first 3 offers.