News of the day: GM loses billions, Barack wants to fund bailout. Has anyone really thought about this? Initially the thought was to lend the Big Three up to $25 billion to produce fuel efficient cars - not a bad idea as I am sure GM would sell at least a dozen $40,000 volts to the Hollywood crowd to drive to the award galas. But wait, next GM wanted $10 billion to close plants and layoff workers to enable a GM-Chrysler merger. Now we are going to lend them billions to keep workers employed, which frankly is the most admirable goal and I give credit to Mr. Obama to make this his primary mission.
Has it ever occurred to anyone the main problem is no one wants to buy the cars the Detroit Three produces largely due to poor styling, inferior design and poor quality fit and finishes?
Better still does anyone realize outside the Detroit Three there is only one unionized plant - Honda in Indiana.
Would bankruptcy be that bad? Renegotiate outdated labor contracts, payoff debts at a reduced level and emerge smaller and more profitable companies - worked for the airlines. Won't cost the taxpayers except for possibly absorbing pension plans.
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