It was only a matter of time, unfortunately. And now that Michigan is an election-year swing state and Detroit's auto makers are posting sales declines topping 20% each month, the time has arrived. The issue of a government bailout for General Motors, Ford and Chrysler is moving to center stage.
Barack Obama has said yes to this proposal early on, and last week John McCain climbed on board. So much for change and fighting pork-barrel spending. We're moving beyond moral hazard here, folks, and into a moral quagmire. At least the Chrysler bailout of 1980 was structured so that taxpayers could reap a reward for taking a financial risk on the company's future. That's not what's happening now.
Everyone's got their hand out. We bailed out Chrysler in 1980, and we are bailing them out just a short while ago. When do we let the free market close out these poorly run companies? Politicians keep talking about the free market, but when a company gets too big and is failing, they jump in with both feet and try to look like they are saving the day.
Be the "bad" guy and let them fail. We've given them a $25 billion dollar loan, and yet, they lose money hand over fist. If they can't see that putting all your eggs in one basket is a bad idea (trucks and SUV's), then they need to simply go out of business or sell. It's as simple as that.
Notice how other companies didn't go that route and are doing just fine? Toyota makes large trucks and SUV's, but they also make hybrids and small, fuel efficient cars.
They are doing just fine because they focused on making a reliable car at a good price. GM and other car manufacturers didn't.
Sorry guys, but I'm tired of paying for your idiocy. It's time for some tough love and you to either make cuts, work smarter, or go out of business.
Travis
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