Thursday, December 04, 2008

To Bail or Not to Bail

Really, really, wish someone knew the answer to that one. The current automotive situation is of course the top news story here, unfortunately I don't have the time (or inclination) to watch a lot of news. Mitch Albom had a great column that I feel is worth the read. I have picked up enough through sound bites, blogs I read, and discussions on the radio station that I listen to, to form my own opinion.

How the hell should I know? Whether or not the automotive industry should be given a ______ (bail out, loan, hand up, fill in whichever word gives you warm fuzzies) is way beyond my good but limited understanding of business. I do however know a whole lot about throwing good money after bad, and am very afraid that this is what this situation is. Although I do not know if I am for a bailout or not, I am very sure that I want the automotive industry to succeed.

I wasn't wild about the financial bailout, I was disgusted with the way it was handled. Failing in congress and then passing once the pork was added. This however underscores my disgust with the process the Big Three are now being subjected to. It just seems to me that congress is feeling a bit of backlash over the financial bail out and is using this opportunity to feign fiscal responsibility. Seriously, lets all put our heads together and think really hard, can anyone come up with a more fiscally irresponsible group of people than congress.

I would like the fate of the Big Three to be in the hands of the Dragon's Den. I want them to come up with viable business plans, plans I know that I would not be able to create. (Seriously, Americans want high wages, new technology, and cheap prices, good luck with that.) I want people who could come up with those plans and who do understand the business ideas that are necessary to accomplish such plans to evaluate the plans proposed by the Big Three. Not congress, congress by definition is a group of special interests. To put the fate of such a massive industry, where the repercussions of failure would be felt in every corner of the world, into the hands of people with only the agenda of their own corner at heart scares the hell out of me.

I do believe there will be a bailout, but I don't trust that it is the correct answer. But I guess tis is the fate of Detroit, Millin was fired and yet the Lions keep losing. Sometimes it takes more than just a quick fix. For my entire memory Detroit has been on the verge of come back, unfortunately as a life long Detroiter (with that brief stop in LA) I have no recollection of what they are trying to come back to.


Marcel said...

You now understand why there was a great movement for congressional term limits. If they knew they would be out in four years they would not pander for votes. Also, if they knew they would be out the pay and perks voted for would not have happened. The term limits only succeded for the presidency. We still have to work on some for the congress.

Marcel said...

Second thoughts: There is a successful automotive industry in the south. All the foerign makes are manufactured there instead of Detroit. They put plants there because labor was less expensive. Another way to look at it, a Union can get you more money but it does not create the job. Only the manufacturer can do that.