Should the US bailout the big three automakers?

[What'saCobra?]

Returning to the basics:
Voodoo economics was a derogatory title assigned to a rather straightforward and functional monetary theory as practiced by Ronnie Reagan, a phrase used by Bush I as he fought (and lost to) RR for the Republican nomination for the elections in 1980. Bush I and Bush II both proved not to understand the need for more balanced budgets. And they both learned the hard way not to trust dem deals. Reaching across the isle is an easy way to lose an arm... or an election. Ask McCain (but i doubt that he learned what was taught).
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RR never proposed that "everything has to be for profit". Nor was that proposed as the only requirement for education or healthcare. However, RR did posit that both health care and education and government services would be improved with more competition in every area of labor, products, prices, services, methods, engineering... One way to gain competition is to open closed markets in every area of business and services, including health care and education. Naturally the NEA and UAW don't care for this approach.

However, every investor or lender has a reasonable expectation of a return on that investment or loan. Investors expect dividends and/or potential capital gains (and a fair, orderly and legal market for their share investments), while lenders expect interest payments (rents) and a certain return of principal. For example, the Chrysler loan included interest and a return of capital. The investors of and lenders to FORD, GM and Chrysler have similar expectations. They are not being met.

Direct investments in banks, insurers & companies in return for shares are essentially unsecured if the companies ultimately fail. But, if they are "too big to fail" (the big lie), they will represent a never ending sink-hole of great sucking sounds from Mukkaw Bay to Fleming Key.

Nor are the Big 3 customer preferences being met; viz: the sale of Toyotas, etc. Sooner or later loan terms will be violated, as they run out of cash.

Nevertheless, i think the USA-built car fleet is simply the best we have ever done. Fit and finish are top drawer and function is superb. But, they are perhaps 5 years late and 15 - 20% too expensive.

Further, in their haste to win control of all of the US government, the dems and their media lackeys have badmouthed our economy, our military, our allies, our leadership, our national motives and our economic policies enough to unfortunately aid and abet our national and economic enemies sufficiently to endanger our financial and credit markets and much more.

It is further unfortunate that the incompetent and probably fraudulent attempt at eliminating whatever racist and predatory policies aligned against our "disadvantaged" citizens (if they ever existed) by requiring dirty loan practices by banks that wished to avoid DoJ charges and the loss of the Federal Deposit Insurance status and even their legal charters.

The combination has proved deadly to the automotive sector in particular, especially when we observe the manipulation of the oil markets and resultant gasoline prices.

Wasting taxpayer moneys on government make-work jobs in the public sector (bridges, roads, etc) from 1932 to 1939 didn't bring us out of the depression, because it doesn't create investment and real jobs. It took WWII to induce wealthy Americans and institutions to invest for those promised and likely to be received returns on their investments. The current TRILLIONS of "don't just sit there, do something" spending isn't likely to fix this investment/jobs/credit problem either.

The big three and their unions need to re-negotiate. Only legal bankruptcy can assure us that the discussions and deals will be public and open. Spending money to delay the inevitable is more than just wasteful of our tax money. It is also a lie and they know it. But, the dems are willing to take any chance to our economy, just like our security, to help save the union bosses and campaign donations.

The highly motivated might like to read the latest GM proposal to the US Senate Banking Committee and House of Representatives Financial Services Committee, that contains many embedded assumptions that are unlikely at best):
http://online.wsj.com/public/resourc...plan120208.pdf