I don't post too often...but this whole bail-out mess has gotten me a little frustrated. I guess the new goal of business is no longer to make a profit, but rather to grow so large that you become 'too big to fail'. Then it doesn't matter what you do, you'll always be around, right? I hope I am disproved. Oh, and in case you thought I was being completely original, I found this image here.
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You live in MI now, you know how much the state is hurting. If ine of the car companies fail, the major impact will be the little people, not these major big guys who run the companies. They can always get a job somewhere. Just my two thoughts.
Anonymous,
Yes, I live in MI now, but that has only helped to reinforce my belief that no government intervention should occur in this case.
Yes, it would initially be devastating, and yes, I understand that the people that would suffer most are the low and middle class, but that doesn't make it right to allow these inefficient companies maintain the status quo that has put them in their current predicament. With enough strings attached (such as an oversight board that basically acts like bankruptcy court, but without the stigma of that name), I would not be opposed to helping them out a bit. However, I hope that the lawmakers understand what a sunk cost is. When the auto manufacturers come back in 9-12 months needing more funding, they need to have the guts to say no, and forget about what they've already sunk into trying to save them. I am also not opposed to a pre-packaged bankruptcy, where warranties are covered by a government guarantee in case of manufacturer insolvency, but the auto-makers are largely opposed to this with the belief that the average consumer wouldn't purchase a car from a bankrupt manufacturer. I personally wouldn't buy an 'American' car, period. Never mind the fact that many 'foreign' cars are actually made in the US.
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