say just let go. Let them go into chapter 11 which is something that should
have been done a long time ago. However, GM has been given 60 more days to
come up with a more acceptable plan and Chrysler has been given 30 days.
The feeling is that Chrysler is less viable than GM. However I am not sure
about that one. It's time to stop throwing tax money at bad investments and
these companies as presently constituted are bad companies and thus bad
investments. If chapter 11 was good enough for the airlines, then it is
good enough for the auto companies.
Obama says that we should not, must not and will not allow these companies
to go away, or maybe he was talking about the U.S. auto industry. However,
when a politician uses words like that you should know that the opposite
usually happens. Just look at any Democrat who says that about a tax
increase. Hold on to your wallet as a tax increase is very likely coming.
Obama and the government know nothing about the auto industry just as they
know nothing about the financial industry. What makes anyone think they
know what is best for these companies? They don't and that is a huge
problem. Besides, I don't want the government in the business of running
auto companies. I was never a supporter of the financial industry bailout
and I was not a supporter of the auto bailout either.
In the case of the financial industry, many companies who did not want the
bailout money were forced to take the money even if they did not want or
need the money. This bailout was about taking control of the financial
industry, not bailing it out so that it could stand on its own once again.
The same is true of the auto industry if the government doesn't just get out
of the way and let the bankruptcy laws work as they are supposed to work.
That's the course of action which should be pursued. How many more
bureaucrats will get a job as a result of today's announcement? Several I
fear. Will the government mandate the colors of the cars? Who knows
because they can mandate whatever they want to if they are not stopped and
stopped now.
What I believe is the proper role of government is a subject for another
blog entry which will not happen today. Suffice it to say, government
control is not free enterprise where companies can and do fail. The auto
companies are going down that road of failure which happens when companies
use an outdated business model and deal with irrelevant unions. Again, the
unions are a subject for another day.
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