The Really Actual Final Paper_Essay

The Really Actual Final Paper_Essay - The Aftermath of...

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The Aftermath of Systemic Errors December 10 2008  With the culmination of the decisions recently made by congress to  loan 700 billion dollars to the financial industry, yet another industry  is looking for Washington to help them out of a bind.  Ford, GM, and  Chrysler, the three largest car companies in the United States are  asking congress for 25 billion of the 700 billion dollars loaned to the  financial industry.
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AEM 414 12/10/08 The Aftermath of Systematic Errors Now, in what is just the beginning of the end of the financial crisis, we are beginning to realize the impact of the credit crunch on one of the largest industries in all of the United States. The U. S. Big Three car dealers, Ford, GM, and Chrysler, have found themselves between a rock and a hard place, so to speak. With the culmination of the decisions recently made by congress to loan 700 billion dollars to the financial industry, yet another industry is looking for Washington to help them out of a bind. Ford, GM, and Chrysler, the three largest auto makers in the United States are asking congress for 25 billion of the 700 billion dollars loaned to the financial industry. GM and Chrysler say the loan is imperative to their ability to make it through the end of 2008, while Ford is in a slightly better position but will run out of cash-on-hand early in the first quarter of 2009 if not given some assistance from the government (Newman). CEO’s from each of the Big Three currently made their way to Washington in three separate private jets which garnered much criticism, not only from the media and television personalities, but also the general public, given the state of their companies. Moreover, they arrived with what seemed to be no plan at all in terms of how they would use the money to become profitable, or any other long term sustainable strategy for their companies. The showing was all in all an embarrassment not only to themselves but to their companies and the thousands of people they represent. Congress has allowed for them to have a second chance to present their case, because a number of issued must be addressed before they can justify giving these companies a bridge loan of some 25 billion dollars. Those issues range from the current business structure of their companies in terms of how they plan on remaining competitive in terms of labor cost, distribution, and model 2 | P a g e
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type. We must also note that Congress is limited here as well by the many variables impacting choice theory such as the size of the problem, time limitations, attribute correlations, incomplete information, as well as other comparable choices. (Lecture 5) Through further inspection of the case at hand, we will come to find that each of the Auto Makers as well as Congress and other related parties were subject to a number of decision errors and behavioral anomalies which led to
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This essay was uploaded on 02/20/2009 for the course AEM 4140 taught by Professor Schulze,w. during the Fall '08 term at Cornell University (Engineering School).

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The Really Actual Final Paper_Essay - The Aftermath of...

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