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Tuesday, November 18, 2008

Auto Manufacturers No Bailout?

Ford, Chrysler and GM may not be in the auto manufacturing business for much longer, especially if they aren't the beneficiary of a supplemental government bailout plan congress has been squabbling over for the last week or so. Some may argue that the industry "leaders" who have been in financial trouble for almost my entire life are too "American" to be allowed to fail. Honestly, whether something is done or not, I highly doubt they will be able to compete due to their bowing down to unions and excessive pension plan payouts. Don't get me wrong, I am a supporter of unions and workers rights, but when you are running a huge corporation you need to be able to stand up to those unions to keep yourself in business. 
This morning, Treasury Secretary Henry Paulson told congress that the 700 Billion dollar bailout plan is not intended to help individual businesses that are not involved in the banking crisis. My thoughts are that they aren't in Paulson's little Goldman Sachs circle so they will not be bailed out. In my opinion, this whole thing stinks. I do agree that the bailout money should be used as prescribed, but when Paulson continues to change the prescription from day to day of course failing businesses and industries will be looking for a handout. This whole thing has been handled so sloppily that it keeps snow-balling into a bigger fiasco by the hour.
It is unclear whether or not President Bush and his administration will allow supplemental money for the auto industry during his last days in office. With the squabbling continuing on the hill between democrats and republicans the auto-makers will likely declare bankruptcy before any decision or legislation is crafted. 
Source: Yahoo News