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Friday, December 19, 2008

Great news!

Bush is rescuing the auto industry.

Comments (8)

Is that backwards? Isn't the auto industry rescuing Bush, by cashing his signed checks after 8 years of illegitimacy with no faith and credit?

It gives me a warm holiday feeling to know that I'm contributing my family's share of this ($240, maybe?) so that the lame chimp can kick the can down the road and see to it that these distressed companies do not go into bankruptcy "on his watch", although to call what he does a "watch" is to dignify it inordinately.

Will the taxes I pay on my my 12.50hr job BE ENOUGH to keep the 40/hr workers afloat?

Kiss of death for Chrysler and GM: they better hope that a European or South Korean manufacturer will buy them for pennies on the dollar. Ford will be the lone independent of the "Big 3" in less than two years.

What a waste.

We have a system for handling distressed businesses. It's called Chapter 11. If the federal government wanted to get involved, the best solution, IMO, would have been to put the money as DIP (debtor-in-possession) financing for the auto companies if they entered Chapter 11. That way, there would be an established process by which the companies could reform their operations, under judicial supervision, and providing both the necessary powers to reform their agreements with suppliers, dealers, financiers, labor, et al.

Instead, we've continued the ad hoc approach which worked so well with the financial sector.

Yeah, Bush is a chimp and is bailing himself out more than the Big 3 ... it is interesting how much you all criticize when he is following the same path suggested by economics thinkers and potential policy makers who support Obama. I am sure if the Big O(bama) did the exact same thing, good idea or bad, many of the same critics would be full or praise.

It's never too late, I call for a bailout to resurrect Studebaker and American Motors Company (after all, now is the time for more Gremlins on the road - grin). While we're at it, Packard and DeSoto made some pretty good cars in their time, let's resuscitate them, more jobs, sounds good.

I am sure if the Big O(bama) did the exact same thing, good idea or bad, many of the same critics would be full or praise.

I think there's a lot of truth to this. There are a couple of good reasons for it. First, Obama will be around to deal with the consequences; Bush won't, and it's pretty clear that he's just making sure (at our expense) that the wheels don't come off for GM and Chrysler before he leaves office. Second, we don't have any track record of success with Bush, and we have a significant record of failure and incompetence, all the way back to his time as Governor of Texas and beyond. Nothing there to inspire confidence. A lot of what informs public feelings about Obama is hope, but it's not irrational in the context of what he has done so far.

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