If that confidence is not restored in the consumers, then it doesn't matter that even GMAC has this money to lend out no one's going to go out and buy a car. If you don't think you're going to have your job tomorrow, then you're not going to go out and buy a huge-ticket item like a car. ![]() On the other side of the problem, you have people who don't have the faith to go out and buy anything.Īnd so, the problem is, even though GMAC now is liquid and it has credit to lend, the problem is many Americans are not going to have faith that they're going to have their job tomorrow. And on one side, you have the fact that people have not been able to get credit, even those who are worthy of credit, because credit markets are frozen up because of a crisis of confidence between and among financial institutions. So, we certainly - we've had a kind of double-edged sword here that's cutting both ways against helping our economy recover from what we think, you know, could be the worst recession since the Great Depression. I think she hit the nail on the head, because the problem is one of confidence here, consumer confidence. MABRY: Well, I think Rochelle's exactly right. I think there are people who are hoping for some type of bridge to help.ĬHIDEYA: What do you think, Marcus, this whole issue of too little too late? So, I think that there will be a difference. There are a lot of people who would like to support the American automaker, not necessarily because of a great patriotic spirit, but because they don't want to see the industry fail and three million people - three million jobs go away. I think that people have been so battered by the economy that you've got to get them over a fear of going into debt for any reason. RILEY: Well, our greatest hope is that it's not too little too late. So, in the end, do you think that this is something that's really going to help consumers and families? ![]() So, GMAC is going to get $5 billion from the feds in exchange for preferred stock. GMAC is the division of GM that makes car loans, and without loans, most people can't afford cars. You're in Michigan, where General Motors got a slice of the federal bailout package. ROCHELLE RILEY (Columnist, Detroit Free Press): Hello.ĬHIDEYA: So, Rochelle, let me start with you. MARCUS MABRY (Editor, International Business, New York Times Author, "Twice as Good: Condoleezza Rice and Her Path to Power"): Hi. He's the international business editor for the New York Times. ![]() With us on today's Reporters' Roundtable we've got Detroit Free Press columnist, Rochelle Riley, and Marcus Mabry. We'll talk to our reporters about what the coming months might bring economically and politically. Bush is stepping out of the Oval Office, as President-elect Barack Obama prepares for his inauguration. Plenty of people are hoping that 2009 could give us some relief from high unemployment rates, the home-foreclosure crisis and the struggling auto business.
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