would the demise of Big 3 effect the global economy? ( Archived) (10)

would it be an adverse thing or the silver lining of the this dark economic cloud that covers the world?

it wouls adversely effect the world economy...but maybe we need that shock to bring us back to our senses!!

I'm just curious cause most of those receiving bailouts out claimed they where globally involved and them not getting bailed out would effect the global economy... Isn't the automotive industry similar in some respects?

yes...it employs a million and a half people. if they were to become unemployed, there would be less money to purchase goods from other economies, thus slowing down their economies. No cars are made exclusively in one country anymore. Therefore parts and assemly would cost jobs in many countries

So it would not be as devastating to the worlds economy as Citicorp or AIG , or the other financial investments firms going under?
Or did those organizations just have a better "pitch man" to secure the loans?

Yes!!! The employees at the foreign plants could no longer enjoy their $8.00 per day salaries..

When the US auto industries first started to branch out many years ago to locations around the world, many critics saw far ahead to scenarios like today with possible economic collapses and job losses all over to people employed in , tied to the US auto makers.
When Toyota decided to gamble and risk setting up plants making their cars in the US, Japanese critics predicted failure against the 'big three'.
They were proved wrong as the critics assumed that the 'big three' would adapt their technologies to actually make better US cars...they didn't and as someone already has pointed out, they lost. Now they cry for your tax money...
The automotive industries should, of course have never set up overseas, or in Mexico. Much smaller countries have been able to produce far better cars both in quality and with faster technological advances as far as fuel efficiency goes. It is curious also that Russia, a large country could produce nothing better for the 'average citizen' than a Lada... yet at least they could design space capsules that came back down on land, in their own country without having to rely on a drop into an ocean and involve so many ships for recovery...
Something went drastically wrong somewhere, but look on the bright side of the economic meltdowns...hardly any banks in South America got involved with the US housing mortgaging mess and are relatively free of the problems here or the US. They turned down investing in the US 'financial packages' Their moneys , low in values compared to the US dollar are still in better shape and will not be facing devaluation any time soon...
You simply cannot operate a financial system or a country based on debt...

I know this is almost too simplistic a question, but where does all this money go?? it does not disintegrate... which means someone has it... for every debit there is a corresponding credit.. golden rule of accountancy..

Thats in the auto workers alone, when the ripple goes out, there are car salesman, auto parts dealers, etc. Not to mention w/ there being more on unemployment, the less goods that are going to be bought such as TVs, cars (foriegn cars if all there is), homes, etc.

To throw that massive amount of unemployment would be a serious blow to our recovery from these economic times...In my opinion of course.