Should the US bailout the big three automakers?

[What'saCobra?]

Wagoner is a sacrifice. Henderson is not as sharp, but is next in line.

Wagoner was pushed out and left as requested, the move contingent on getting the further money. Just a side-show for the UAW and the public.

If one is not SURE if the government might not be worse in every measurable way, they should put $100 dollar bills under their pillow for the tooth fairy. For instance, despite our President's assurances that they do not wish to "run" the automobile companies, He has stated that He wants America be the first to produce an efficient and low CO2 vehicle for world markets. But, isn't He going to create complete mandates for Detroit, based on secret Presidential Finding letters?

Isn't that how HE is continuing the remandering operations with the CIA?

Meanwhile, back at the ranch, He has also assured potential Government Motors buyers that they should not be worried about buying cars from a "bankrupted" GM, because the US government will stand behind their warranties! Just how much money did President Obama commit to make that statement? Who authorized that expenditure? Who is in charge? Who's oxen will be AlGored?

Wagoner is a window-dressing sacrifice to get the UAW to listen and accept a somewhat more reasonable offer. Pelosi refuses to accept the UAW failure, if a legal bankrupcy is allowed. This is a 60 day attempt to get the UAW to blink. Based on the last 80 years of union history, like PATCO, they will not blink; so the President will muddle through with lots more money, wasted energy, wasted time and wasted authority.

My suggestion: full bankrupcy and reorganize. Soon, 7 days, unless the UAW capitulates. That is what Margaret Thatcher had to do to the coal mines and Reagan had to do to PATCO. Anything else is simply more costly agony.

Imagine, by the way, being on Chrysler's merger team and hearing that you have only 30 days to sell out to FIAT, another essentially government-controlled company. Not a set of pre-conditions that bode well for Chrysler.

According to Wiki:
"On 20 January 2009, Fiat S.p.A. and Chrysler LLC announced that they are going to form a global alliance. Under the terms of the agreement, Fiat takes a 35% stake in Chrysler and gains access to its North American dealer network in exchange for providing Chrysler with the platform to build smaller, more fuel-efficient vehicles in the US and reciprocal access to Fiat's global distribution network.[23][24]
As of March 29, 2009, President Barack Obama has forced Chrysler to form an alliance with FIAT in 30 days as part of his gov't plan.
The new equity holder would have the option of increasing that to as much as 55%. Fiat, the stronger of the two, wouldn't immediately put cash into Chrysler. Instead it would obtain its stake mainly in exchange for covering the cost of retooling a Chrysler plant to produce one or more Fiat models to be sold in the U.S. Fiat would also provide engine and transmission technology to help Chrysler introduce new, fuel-efficient small cars.
The deal is the latest maneuver by Fiat's chief, Sergio Marchionne, who has pulled the Italian company back from the brink of collapse since taking over in 2004. The partnership would provide each company with economies of scale and geographical reach at a time when both are struggling to compete with larger and more global rivals like Toyota Motor Corp., Volkswagen AG and the alliance of Renault SA and Nissan Motor Co.[23]"

Having FIAT help Chrysler build a small "American" car, is like asking Colin Chapman to engineer solutions to the DeLorean automobile. You can bet that at least one seriously wrong thing will be "salted" into the design to ensure its complete market failure. (DeLorean ended-up a rear-engined Tatra, without the excellence.) Colin must have laughed at John-Boy and Jolly Old England all the way to his grave.

But, no one at Chrysler will be laughing when they are skinned-alive by the Italians, with His permission.

President Obama is presiding over the largest loss of American capital and equities since WWII, but deliberately taking from the rich and giving to the black poor.

For lack of a better word, i call it reparations plus grande in flagrante.

But, of course it is only my opinion and i am not on the inside.

FORD, however, remains the only excellent US company left, for about another 9 months. i hope FORD can stay aloof of He Who will be in command. Not forever likely, though. Still, when all these little tiny pseudo-cars are built by Chrysler and Government Motors, FORD will only slightly downsize to American-sized hybrids of advanced design and keep that nitch forever.

Somebody has to pull the horse-trailers, sailplanes, boats, campers, feed, stock, bales, etc.