< HOME  Monday, January 02, 2006

Money for NOTHING, Cars for FREE

In their 1980's hit, Dire Straits sang on behalf of blue-collar workers lamenting the outrageous sums of money and girls enjoyed by rock stars for doing nothing but banging on drums and playing guitars. But, the same can be said of the Big Three Lenders behind the Big Three car manufacturers; only lenders, who generate credit from thin air, get CARS instead of girls, while workers do all the heavy lifting.

GM, Ford, Chrysler and many others in the auto industry borrow tons of pseudomoney to capitalize their operations, not only from banks but from their own financing arms. These creditors literally create credit from thin air, upon which they charge interest (money for nothing) and against which they secure the company's assets as collateral (cars for free).

When the manufacturing arm BITES the DUST, the holding company tries to sell off the financing arm to make away with the all the assets!

[Sing: I want my, I want my, I want my Chrysler Jeep]

So, if you're headed to Detroit for the 2006 Auto Show January 14th, don't be fooled by rows of shiny new cars and teams of lenders with great deals to finance new wheels. Behind the scenes, these exhibitors deliberately carry mountains of DEBT and wage war against their workers.

If you're going, it better be to support workers at Delphi, Ford, and GM, who are protesting the show in defiance of those who would rather pay interest on loans than keep plants open, or pay for healthcare and pension benefits for workers. Stand in solidarity with the people who MADE the cars instead of with the monopolists who finance production with funny money at INTEREST.

Sure, it's nice to look at fancy new cars and dream about driving one (at current interest rates, forget about ever owning one!). If you must, enjoy the eye candy at the show; but when a lender offers a financing deal give him the BIRD and tell him you stand with the workers.

If you choose to ignore my recommendation - remember that ZERO interest financing NEVER lasts! Read the fine print, or get the SHAFT.


At Saturday, January 07, 2006, Anonymous Anonymous said...

This writer has more on the protest at the NAIAS.


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