President-elect Barack Obama said the government needs to provide help to U.S. automakers on condition that management, labor and lenders come up with a plan to make the industry “sustainable.”
“For the auto industry to completely collapse would be a disaster in this kind of environment — not just for individual families but the repercussions across the economy would be dire,” Obama said in an interview broadcast this evening on CBS News’s “60 Minutes.” Government aid could come in the form of a “bridge loan,” he suggested.
Under normal circumstances, Obama said, allowing General Motors Corp. to enter bankruptcy, undergo a restructuring and then emerge as “a viable operation” might have been a preferred route. If that were to happen now, he said, “you could see the spigot completely shut off so that it would not potentially permit GM to get back on its feet.”
[blockquote]Government aid could come in the form of a “bridge loan,” he suggested. [/blockquote]
Behold the 2009 Bridge to Nowhere.
It wouldn’t “completely collapse.” It would continue operations while reorganizing. GM is bloated and carrying the legacy of decades of poor decisions. Time for a normal correction which ordinary business processes will provide.
This is beginning to sound like a chorus of “What’s good for General Bullmoose is good for the USA” but this time from the union line.
Make the industry “sustainable”.
I believe the sincere intentions here. But what can be done that was not done the last 10-20 years hmm? George Will wrote a piece several months back about (then Sen) Obama: “believing is seeing”.
“Be sustainable! The government commands you to be sustainable!” and *poof* it will happen regardless (I did not write “irregardless” – woo hoo) of the market.
“In 5 years all cars will be environmentally friendly in *this* way!” and *poof* it will happen. (Don’t get me wrong. I am horrified Americans are not all driving hybrids, electric, or clean diesel at this point. Fantastic goal. But can the government just demand it – regardless of the market?)
I read that Ford has developed a clean diesel car that it will not sell here because of environmental regulations. President-elect Obama is focusing on propping up these bloated union-strangled companies (I believe that is where more than 50% of the problem lies) but I am not sure he is even aware of how government regulation (and not just government “support”) is part of the problem.
Rough math: $25 billion bailout divided by 110 million voters equals about $25k per voter. May I have mine now? I could use it at a GM, Chrysler, Ford dealer.
Nonjuror [#4], try this: http://www.arlo.net/resources/lyrics/chrysler.shtml
[url=http://online.wsj.com/article/SB122688631448632421.html]Here[/url] is a good analysis of why Chapter 11 is the right choice for GM.
Irenaeus [#5] thanks I needed the laugh.