[Dan40]

puppster,



I agree with what you are saying, IF, the auto mfgs. were to disappear. It COULD be a calamity. And for every facet of our economy, not just auto related. But that is the "SCARE TACTIC," that Detroit is trying to use. They actually said that if the bailout money is not paid, GM would be gone by January 1. THREE WEEKS? If I were a congressman I would have adjourned the meeting at that point, Telling them to get out and stay out since we do not negotiate with terrorists.
Bankruptcy laws contain many levels of protection for companies. What bankruptcy laws do not contain is registered voters that are UAW members.
That is the only thing our politicians are considering.
If bankruptcy protections did not work, THEN would be the time to consider bailouts. The big 3 are trying to hitch onto the credit crunch as the root of their problems. That is a lie, the credit crunch is simply the final exposure of their decades long mismanagement. They have been operating on the business model, "We lose money on every sale but the volume makes up for it!" for 20 or 30 or more years. Now they get exposed by the lack of volumne. The big 3 are not good investment risks, They are not good credit risks. They HAVE already been rejected by the people that are in the loan business. Congress knows nothing about the loan business [or any other], they are the last to approve a loan to anyone.
Imagine someone you barely know comes to you for a loan. A HUGE loan, more than you have!
They tell you that they are broke.
They tell you they owe billions to others in front of you.
They tell you they have no idea how they will pay you back or even IF they will pay you back.
They tell you their credit rating is at 0.
AND, THEY TELL YOU, YOU WILL SUFFER IF YOU DON'T GIVE THEM THE MONEY.

Who wouldn't jump on that deal?

Does anybody have any experience loaning money to someone with bad credit, huge debt, no income, no plan, and a horrible history?
How did it work out?

Bankruptcy, with a complete overhaul of ALL their business plans AND a complete change of management might be the best [and maybe only] thing to save the US auto industry.
We have decades of experience of knowing that giving people and institutions money they don't deserve and haven't earned, doesn't work!

Dan