Quote:
Originally Posted by funchy  I vote no.
The problem is that the corporation itself is broken, for lack of a better word. GM is a boat quickly taking on water. Bailing out the water only prolongs the sinking, but never addresses the root problem.
In a way, a bankruptcy and major re-organization would be a good thing. I just wish the American auto companies would do something. Instead they jet around the nation in the comfort of their private jets, talking to politicians to see if they can get some easy cash for their company. How is this good leadership?  |
To me, bankruptcy would prolong the sinking.
I agree completely that the govt shouldn't throw good money after bad, and that the auto makers have to come up with a better business model, and an actual plan. It will be impossible for them to do the retooling necessary to be competetive with the Japanese and European car manufacturers without an infusion of capital. Buying a car isn't like buying an airline ticket, it's a larger and longer term investment. Most people will not buy a car from a bankrupt manufacturer, and in fact, probably won't be able to get a loan to buy from one.
If we allow these companies to fold completely, which could happen even with the bailout, it will not only be devistating to that part of the country, but will have a ripple effect for the entire country. The 25 billion, is 3.5% of the total bailout package. The average auto worker makes $57,000, considerably less than the millions that the executives of the financial institutions. It seems like a bit of a double standard...
Is this an ideal scenario? Of course not, but it's something we have to do for the health of the economy moving forward. Who knows, maybe it will actually work, and Ford and GM will actually make cars that people want to buy.