Posted on 12/10/2008 5:34:23 PM PST by Kaslin
font size=4>Auto Bailout: As the Big Three get closer to securing billions in aid from Congress, what was once called a "bailout" has turned into a plan to nationalize the car companies. Bankruptcy is still the better idea.
We could have accepted a "prepackaged bankruptcy" in which the automakers negotiate with both creditors and unions to restructure themselves in exchange for a bailout.
It might have included the closure of marginal auto brands and unprofitable plants. And unions would have opened up their gilt-edged contracts for renegotiation, bringing them in line with manufacturing norms around the globe.
But the Democrat-led $15 billion bailout does none of this. It merely replaces the efficiency of market forces and existing bankruptcy law with extensive government control. It also opens up the possibility of a never-ending stream of subsidies to automakers who have steadily lost market share since the early 1970s.
Here's the broad outline of what we believe will essentially be an in-place nationalization of a major American industry:
(Excerpt) Read more at ibdeditorials.com ...
That's been the plan all along...
L
The government is basically getting ready to “Conrail/Amtrak” the car companies. Another boondoggle that will bleed tens of millions monthly and will be “too big to fail”.
/mark
You should start an IBD ping list.
The articles are always a good read.
“The government will name a “car czar” to rule over the industry with “veto power” over any Big Three expenditure over $25 million.”
That’s basically EVERY expenditure which in turn amounts to total government control.
GM will go from being an HMO that builds cars to a Government-run HMO that builds cars.
Thankfully, President George W. Bush will veto the 15 Billion Dollar Auto Bailout just like he Vetoed that Trillion Dollar Wall Street Bail Out.
- Traveler
How about?.....
the Edsel
the Corvair
the Pinto
the Pacer
How about the Aztek? Only now it will be better because it will be built by the government. What a great idea! Just like government cheese is the best cheese, I’m sure government cars will be the best cars.
I was thinking the new government cars would be more like the Yugo or Trabant.
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