I have a client who retired from the Automobile dealership business, we were talking about the bail out and I made the comment if I failed in my business I would go out of business..end of story.
But we don't manufacturer anything: Realtor provide a service to sell other peoples products, we don't actually produce this product we are the middle man and are paid a commission for competing the transaction.
The Big Three Produce a product: My friend went on to say, if two of the three American car companies go out of business the third would HAVE TO FILE BANKRUPTCY TOO!. Why is that, well lets take the dashboard of a car as an example, the company that makes dashboards (make 80%of all dashboards) makes them for all three of the big Auto companies. If two go out the dashboard manufacturer would have to go out of business so the last remaining car company would have no place to buy dashboards and even the healthiest auto company would have to file bankruptcy soon after the other two. Now Add auto glass, Seats, starter motors,Etc...
Real estate is not the same: If the big three real estate chains filed for bankruptcy the independent contractors (agents) could go to work for any other firm who would be glad to take up the slack or start their own firm. This move would not hurt the local sellers of property that are relying on our services, but in the Auto business the local employees and area businesses will be negatively impacted for a long time maybe never recovering.
What do you think the Government should do?