Should Taxpayers Rescue General Motors, Ford, and Chrysler?

November 20, 2008

Onsite Computer Services in New Orleans regularly visits our Microsoft business clients and lately the conversation is always centered on some aspect of the economy.  A frequent topic du jour of Onsite‘s small business clients is the possible government bailout for General Motors, Ford, and Chrysler.  The opinions of our clients vary from “… let them fail,” to “… the ripple effect to other industries will fuel impending global economic doom if the government does nothing.”

The Big Three auto manufacturers are pleading for a $25 Billion ‘bridge’ loan to provide a liquidity ‘life-line’ during the present economic tightening.  ‘Bridge’ loans are defined as interim financing for an individual or business until permanent or the next stage of financing can be obtained.  Some contend the problem is the Big Three business model is doomed to fail with huge unfunded retirement expenses for retirees.  Permanent financing from the private sector is unavailable because no one believes the Big Three, in their present form, can avoid eventual bankruptcy.

In the immortal words of Warren Buffet, “It’s only when the tide goes out that you learn who’s been swimming naked.” Critical mistakes in managing a business can be overlooked during the good economic times; however “… when the tide goes out…” and we face tough economic times, management mistakes become obvious and critical.  As the Big Three deplete their cash reserves during this economic narrowing, their mistakes in managing labor for the past forty years may lead to their demise.  What do your think?

If you’re searching for New Orleans computer service or repair of your Microsoft based system or network, then call the Microsoft specialists at 504-469-6991. Onsite Computer Services, Inc. in New Orleans

You may also be interested in Onsite Computer’s Blog.

This New Orleans On-Site Computer Service post was provided by Eli Lucas. Eli can be reached at eli@onsitenola.com. Onsite Computer serves the Microsoft computing needs of small businesses throughout the Greater New Orleans area including Uptown, Lakeview, Broadmoor, Mid-City, Metairie, Jefferson, Kenner, Westbank, French Quarter, and the Warehouse District. Please visit our website for New Orleans Computer Service.

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