Funniest Thing I have read today

[Snowgoose]

Guys tightening nuts make more than I do and it's not the unions fault the auto industry is in the toilet. I don't see Toyota doing so bad.

Lewenza said the problem with the auto industry is not unions but the lack of consumer demand.

http://www.cbc.ca/money/story/2009/03/0 ... ml?ref=rss

Wages and benefits not on table in GM talks, CAW head says
Last Updated: Thursday, March 5, 2009 | 3:39 PM ET Comments354Recommend69
CBC News

The Canadian Auto Workers union is expecting to make sacrifices in contract talks with General Motors Canada necessary for the company to access government support, president Ken Lewenza said.

But "we believe we can maintain our existing wage and benefit package," Lewenza told reporters Thursday. The union will also try to maintain jobs in Canada.

The company and union began what Lewenza called "exploratory talks" Thursday afternoon.

"We've got to find some savings" so Canadian plants can compete with General Motors's U.S. plants to build new vehicles, Lewenza said. The United Auto Workers, the union for nearly all the company's U.S. workers, have offered concessions to GM Canada's parent company, he said.

GM Canada outlined a restructuring plan in February that would cut its Canadian workforce to 7,000 by 2010 from 12,500 today as part of its request for up to $7 billion from the federal and Ontario governments.

The government wants all participants in the industry to make sacrifices, Lewenza said. That is the backdrop to the talks with GM.

"There's a determination to get this done," he said. The union has proposed a March 15 deadline — before the official March 31 deadline — to GM and Chrysler, the other Detroit automaker seeking government aid.

Lewenza said the problem with the auto industry is not unions but the lack of consumer demand.

CAW economist Jim Stanford said hourly wages in Canada are below U.S. and German levels, and productivity is higher. Canadian plants have "a significant advantage," he said.

Chrysler is requesting around $2.8 billion in aid from the federal and Ontario governments.

[Driving Rain]

Taxpayers may bail out GM, Chrysler but buyers can't get car loans
By Greg Weston:


In a week when the Bank of Canada lowered its benchmark interest rate to almost zero, the country's major financial institutions are still charging consumers up to 10% for a car loan.

So much highway robbery strongly suggests the major banks are deliberately attempting to drive customers to finance their family clunkers elsewhere.

Can't blame them for trying.

The latest financial filings for Canada's big six banks predict the worsening economic crisis could turn a growing wave of lending losses into a tsunami of red ink.

The Bank of Montreal, for instance, reported that its latest three-month profits from consumer banking were up 12% to $325 million from a year earlier.

But the amount of money the bank is setting aside to deal with the possibility of bad loans almost doubled from the year before to a whopping $428 million.

It is much the same story at the other big banks.

Scotiabank managed to suck 17% more dough from the pockets of Canadian consumers and commercial customers in the past three months than during the same period the previous year.

But its provisions for bad loans more than doubled in the same time period.

Overall, the six major Canadian banks are estimating their combined load of bad loans could increase a further 57% in the coming year, and an additional 21% in 2010.

As the Canadian Bankers Association is quick to point out, the higher the risk, the higher the interest rate.

In addition to the credit risks inherent in a crumbling economy and higher unemployment, car loans have become a special gamble all of their own, especially when the wheels being financed are made by General Motors or Chrysler.

Collateral

Generally speaking, a car loan is based on the vehicle being used as collateral -- stop paying and the bank can repossess the car and sell it to pay off the remaining debt.

But as one industry analyst puts it: What's the value of a GM vehicle you're using as collateral if the company itself ends up in the ditch?

More risk, higher rates.

Truth is, the big banks haven't been pushing the car loan biz for a long time.

Instead, the car companies themselves got into the lending business to the point attractive financing has become more pivotal to most car sales than leather seats and a cool sound system.

But risk plays no favourites, and all those sweetheart loan and leasing deals offered by the car companies came back to bite them on the bottom line.

Then came the economic crisis.

Most of the money used in the auto financing business is raised in the private markets, and when the current credit crunch hit, investors ran for the exits.

Today, most of the auto finance companies such as GM Acceptance Corp. are on the ropes.

Despite what the ads say, auto loans are hard to get and leasing has all but gone the way of the muscle car.

Ergo, many consumers are being driven back to the banks.

All of which has created some enormous problems for the already struggling car companies, and by extension, for the federal government.

Pumping billions

In short, the feds are about to pump billions of taxpayers' dollars into saving GM and Chrysler.

But what's the point if consumers can't get a lease or a loan to buy a car?

The Conservative government recently announced the feds will commit up to $12 billion to help boost the auto lending markets -- and by extension, kick-start car sales.

But so far no one seems to know exactly how all that is going to happen without putting the public treasury on the hook for potentially billions in future loan defaults.

Taxpayers, start your engines.

[Inverted2]

I looked at car loans recently. Its crazy the bank gets the money at 0.5% and then charges 8-10% interest! Im gonna keep driving my car another 5 years! Besides, my tax dollars are paying enough to the auto industry now anyway!:finga:

[iflyforpie]

No more car payments for me! (Well, except my tax dollars at work ) Just finished a GMAC lease and bought another old Volvo. I guess I help contribute to that whole lack of consumer demand.

[Hedley]

CIBC was the ONLY Canadian bank to post a loss in 2008.

TD bank made a PROFIT of $3.83 BILLION in 2008.
Bank of Montreal make a PROFIT of $1.98 BILLION in 2008.
Royal Bank made a PROFIT of $4.56 BILLION in 2008.

Remember, people, this is PROFIT, not REVENUE.

Getting money from the government at 0.5% then
lending it out at 10% is a good way to make BILLIONS
of dollars in profit every year.

Why BILLIONS of the taxpayer's dollars are pumping into
the banks is beyond me.

Banks, in Canada, are corporate welfare bums. When
the central bank drops the interest rate "to stimulate
the economy", the only thing they stimulate are the
bank's bottom lines.

[Brown Bear]

I never spend more than 6K for a car. A new car is pretty much the worst investment known to man. I will, however spend twice that on a bike. Go figure...

[SkyWolfe]

I just traded my Jeep down for an old Mustang. I didn't feel like paying my monthly dues to Chrysler anymore...

[Spokes]

CIBC was the ONLY Canadian bank to post a loss in 2008.

TD bank made a PROFIT of $3.83 BILLION in 2008.
Bank of Montreal make a PROFIT of $1.98 BILLION in 2008.
Royal Bank made a PROFIT of $4.56 BILLION in 2008.

Remember, people, this is PROFIT, not REVENUE.

Getting money from the government at 0.5% then
lending it out at 10% is a good way to make BILLIONS
of dollars in profit every year.

Why BILLIONS of the taxpayer's dollars are pumping into
the banks is beyond me.

Banks, in Canada, are corporate welfare bums. When
the central bank drops the interest rate "to stimulate
the economy", the only thing they stimulate are the
bank's bottom lines.

Do what I have done. Invest in Banks.

[iflyforpie]

GICs with their lousy returns or savings accounts that are even worse? The banks win both ways.

Anyways, I don't know why anybody would want to buy a new car these days when you can find so many deals on debt row right now.

[Jastapilot]

Lewenza said the problem with the auto industry is not unions but the lack of consumer demand.

Too funny. Lack of credit is not why I will never buy a new vehicle any time soon. I refuse to pay 10's of thousands of dollars for sub-standard shit. Simply put, the vehicles are overpriced because of the unions overpriced wages, second, that overpriced wage doesn't even get me superior quality, so why would I run out and buy, even at .5% interest rates? They can burn, for all I care, but hey, some smarty pants in the government is using my tax dollars to bail them out anyways, so I suppose I should have a warm fuzzy feeling about it.

[SkyWolfe]

[C-FKLY]

Hedley is right about the banks though -- if everyone is losing money, but that money isn't being destroyed, then SOMEONE out there is making lots of money.

[. ._]

Sure the prime rate is down to 0.5%, but it's hard to get a loan when you're unemployed.

[iflyforpie]

Sure the prime rate is down to 0.5%, but it's hard to get a loan when you're unemployed.

Student loans baby! No interest while you are enrolled and you can piss it away on all kinds of things. 10+ yr amortization equals low payments.

[. ._]

That's the plan, baby! September is coming, and by April 2010, I could have my B.A. in psychology!

Working is for suckas!

-istp

[BibleMonkey]

... and by April 2010, I could have my B.A. in psychology!

...-istp

Dr istp, I need psychological marriage counseling.
It all started when I was arguing with my wife
-I said dog is mans' best friend-she said it should be the mans wife.

So I locked them both in the trunk for an hour to see which one would be happiest to see me.
Now she has thrown all my stuff on the lawn.
What should I do?

[. ._]

You gotta get real, and get a good lawyer. (let her keep the GM stock)

-Dr.Istp