If anyone has any better ideas other than an endless pit of bailouts I'd like to hear them (from Phil Rothman).
You can't be an American male with an atom of testosterone and not have your blood boiling after watching this short film.
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Bailing out the auto industry makes absolutley no sense, and is not consistent with the treatment of other financial institutions in terms of the bailout package. Clearly, the "Big Three" have a solvency problem, not a liquidity problem. They have been losing ground for over thrity years and will no way shape or form pay back any buy out plan they may recieve.
Judgement day will come, they will delay the inevitable with a bail out.
Well Arnold if that is really you, no bailout for you either you girlie man.
Enter bankruptcy, dump the pension benefits on the PBGC (making it incredibly broke in the process), dump the union contract, and find some way to guarantee the warranties.
It would be interesting if they were ESOPs. Presumably the UAW would then be less willing to slowly kill the big 3.
By the way, how about Zimbabwe's? They sure passed Bolivia's record awhile ago.
should read Zimbabwe.
Barney Frank has been in the news again: he told NPR that the $25 billion wouldn't be enough (much more money needed).
I don't know if you've noticed that Henry Ford's $5/day wage is being used by the lefties an awful lot with respect to the auto industry. If we don't pay them so well no one will be able to afford to buy the cars...
My personal favorite lefty statement is that the government will be making money by loaning to the big 3. Kind of hard to convince them that the government is really bad at picking winners.
Mark Perry over at UM-Flint has been taking some heat for stating the obvious: UAW workers cost the big 3 ~$30/hour more than the foreign owned auto plants in the usa.
http://mjperry.blogspot.com/
As of Sunday 12/14 the government is not rushing to help the automakers because they want to "get it right".
http://finance.yahoo.com/news/White-House-says-auto-loans-apf-13826411.html
If in three weeks GM is bankrupt then would that make it any difference to "get it right" at all? In other words, would there be anything left to do with the business which is liquidated?
It seems to me that if the consumer did not take down GM by not buying their cars, the government now does the final blow by keeping the company in the news. I cannot imagine how the the constant talk of bankruptcy can be any helpful for that company's survival - who is buying cars from them?
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