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Thursday, June 19, 2008

GENERAL MOTORS RIVER DAYS

With the bar exam about a month and a half away, I have been unable to sufficiently perform my duties at detroitarmy.com. Based on your opinion of lawyers, the bar exam may or may not be a legitimate excuse, but whether it is or isn't, is neither here nor there. It is what it is. If my staff ever grows larger than one (myself) and about 2/3 of a person (my much appreciated contributing writers), large commitments such as this hopefully won't take such a toll on the frequency of information provided.

Anyway, while I am presently unable to spend the amount of time on each story that they deserve, I have to mention that the GM River Days Festival begins tomorrow, and ends with the 50th Annual Target Fireworks on Monday June 23. There will be plenty to do over the four days, as new and improved waterfront activities have been added to last year's already lengthy list. It's always fun to be down by the river on a beautiful day, even if the national musical acts aren't very impressive (Hey, I love some old school Brian McKnight just as much as the next guy, and needless to say, B Mcknight worked miracles with the ladies during my high school days, but that doesn't by any means give justification for him being the headlining act).

Below I've provided a few informational links regarding the GM River Days Festival...

Detroit River Days Official Site
Waterfront Comes Alive for GM River Days
TellusDetroit.com

Detroit Army

3 comments:

Anonymous said...

Since I'm only 2/3 of a person, I guess you can keep this one off the front page too.

"S&P rates all three automaker's debt B. For issuers rated B, `adverse business, financial, or economic conditions will likely impair the obligor's capacity or willingness to meet its financial commitment,' according to S&P's ratings definitions. http://www.bloomberg.com/apps/news?pid=20601087&sid=aeU3MwKXQDyg&refer=worldwide

The quote above came from an article on bloomberg.com. The bulk of the article outlines the numbers we all cringe at every time we look. While GM's and Ford's horrific performances and bleak outlook are clearly laid out in terms of bleeding losses, Chrysler is saved some of the harshness of reality due to its status as a private company.

Since the owner of this blog is taking the bar, I chose the particular quote above to comment about whether GM and Ford may be forced to pay of debts, resulting in a “dooms day” scenario for Detroit. It is unfathomable to me that the Detroit auto-makers may actually close the doors (besides Chrysler because who knows what's going on over there), but as the US economy continues to slide deeper into a recession and gas prices continue to sky rocket, our "backbone" becomes increasingly more fragile. If GM and Ford cannot pay off their debts, as the most reputable financial forecasters are predicting (and if not predicting, at least not confident they will be able satisfy their financial obligations), where does this leave the city? In other words, (a question for the soon to be lawyer) will the companies be forced to "fulfill [their] financial commitments"?

Hopefully, equity prevails and the obligees' will work with the companies to create a solution that will not cripple the American auto-industry. And if the courts and creditors have no compassion, the companies better hope Democratic idealist prevail in bailing them out. Only time will tell.... Detroit may need some help that the law will not provide.

Anonymous said...

"It's sad to think that a company like GM could be kicked out of the world's most venerated market gauge. If removed, GM would join a growing list of former Dow components that are just not as relevant as they used to be, such as Sears, Eastman Kodak and U.S. Steel. But make no mistake. GM's time has come." Yahoo news.

Well nobody cared much about the previous comment, but as the yahoo writer suggests, the financial impact of GM and the Detroit auto-industry is going by the wayside.

As a Detroiter (well suburban Detroiter), this is difficult to consider, but the global market place, unions and whatever else we have all heard about for years is truly only effecting our home. We wanted Romney because he "would be good for Michigan." However, we live in a country and a world where 1 city and 1 industry cannot be a driving force on the economy as a whole, and it is unlikely that politicians will take substantial steps towards freeing the big 3 from their financial problems.

I'd like to say that I buy into Jeff Daniels commercials, but we cannot rely on recruiting outsiders to improve the Detroit economy. I'd also like to say that I don't believe Greenspans recent statements about unforeseen hurdles standing in the way of the US economy turning around, but he has been a pretty good forecaster of future economic conditions. While it may be time to dump GM from the Dow, it is not time to give up on Detroit. Americans need to take a strong look at what's happenning in this country. "Made in the USA" used to mean something. We (Americans) need to realize that the loss in market share may not effect the financial markets, but it is just another economic force driving our country deeper into a recession.

Anonymous said...

With all the negative press, I felt it was necessary to post something positive about GM. Read the link below. It details a plan to introduce a 40 mpg car in the US. Now that is something that American consumers may be interested in when the prices at the pump reach upwards of 5 or 6 dollars.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aEJvUUe4iUlU&refer=worldwide