They’re trying to rush the bailout because they, the left-wing illuminati, feel that these companies will bring jobs back here, but they won’t, watch and see.

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If the taxpayers are forced to bail out the big 3, then everyone will boycott their products because they don’t want to pay twice–once through taxes and a second time through buying the product. At least I will and I think lots of people will join me. So say the goodbye that’s been coming to them for a long time.

And, hopefully, enough public pressure will convince the dems that bailing out their union buds is not a wise decision for their political future.

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This has to be excruciating for some. No Big 3 would equal no NASCAR.

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Larry, the idea that the US auto industry is critical to national defense is a good one, but it’s complicated by the permitted death of the US steel industry, ironic in the face of Democratic Party reluctance to drill and utilize America’s national resources for national security (rather than fund nations that don’t like us), as well as other examples of scenarios where “critical to national defense” was or is ignored.

Ultimately, I repeat that the Democrats in Congress cannot individually or collectively afford not to give unlimited funds to the big three for if one of them closes, and their union workers are unemployed then the organized labor campaign funds those members of Congress get are reduced=power reduced.

However, every time the Democrats’ Congress gives money to banks, lending institutions, automakers, insurance companies, etc., it reduces the ability of Congress and incoming Pres Obama to do anything with their domestic agenda as there’s less funding for that.

Certainly there’s a conundrum of how to spur investment in a nation where investment is lagging while at the same time increasing taxes on the 5% of the nation that does the most investing and increasing taxes on gains from investing. The two ideas contradict themselves:
invest to make more money
tax investors making it harder for them to make money

The Democrats’ Congress simply cannot do both. They also cannot cut pork from their budgets as that reduces further their individual ability to market themselves as locally advantageous to voters in the next election.

Oh, the big 3 will get their money so the unions keep their power base and the Democrats get their campaign funds, but it’s gonna be REAL REAL REAL interesting when the big 3 come back for yet MORE money in a few months. The well is only so deep, and sooner rather than later the average American (those 95% of us who were promised tax cuts by Obama) are gonna ask why rich people get bailouts, rich people do not get the tax cuts, and instead our cost of living skyrockets and our job security plummets.

Oh yeah, Larry, when it comes to national security, manufacturing, etc., we here in Akron/Canton/Youngstown/Cleveland know a bit about letting industries die despite their importance to national security.

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Hmmmm. Where’s larry?

In Turkey, where, as they share a border with Iraq, they are quite a bit more informed about what’s going on in Iraq than the average American. The Turks have their own idea where this is all headed; I’ll report upon my return.

In the meantime, I’d like to hear what you guys think of Wesley Clark’s opinion that saving the US auto industry is critical for national defense:

http://www.nytimes.com/2008/11/16/opinion/16clark.html?ref=opinion

- Larry Weisenthal

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Actually the restructuring cost will be well over $25 billion.

They didn’t come to congress to get $25 billion and expect to come back anytime soon.

So there’s a choice here. Give them $25 billion now and temper the terms of the bailout. Or, if they can survive a few months, they’ll probably need a lot more come January in a deal with the Democrats which will seek to control them and create a situation where more money will be needed later. The price will likely be a stronger union and making green products no one wants on the scale of a GM.

A second chance bailout vs. a nationalized auto industry. Which is worse?

The Precedent here is that Chrysler got its bailout, recovered, paid it back, and learned its lessons. So much so they were raided by Daimler. If Daimler hadn’t gutted them, they wouldn’t be in trouble now.

Taking a chance on that is worth avoiding the Democrats getting the government intertwine permanently

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JPM said: “Restructuring Bankruptcies typically need gobs of capital to execute.”

How’s $25 billion sound? Enough?

As for beating the unions, the Dems will never allow it. That’s why they are unlikely to support the bankruptcy option.

Unfortunately, that leaves us tossing $25 billion down a rat hole with a problem that is not going to go away. It will only make the problem take longer and cost more to resolve.

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[...] Why Democrats Are So Eager to Save Detroit Auto Posted on November 18, 2008 by paulswansen Seeing as it’s a Union Bail out and not an Auto makers bail out – http://www.floppingaces.net/…to-makers/ [...]

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Restructuring Bankruptcy isn’t anywhere as easy to do as it is to say. Yet people toss it out like a sure fire fix.

Setting aside the possibility for chasing away a large portion of the customer base for some time, Restructuring Bankruptcies typically need gobs of capital to execute. Since the auto companies have no way of acquiring capital now, they sure won’t be able to do it after declaring bankruptcy. That means outside capital is needed. Where is that going to come from? There’s only one place. Taxes. And likely more money to float through the Restructuring than is being asked for now.

If you really are serious about the union being the cause. Give the auto companies the tools to bust or at least weaken the union. They can get the more aggressive concessions they need to be competitive and the uncertainty that bankruptcy brings is avoided.

To bring competitive parity, you have to strip retirement healthcare and pension from people close to retirement. They have nothing to lose from striking the company into bankruptcy if you try to take that away from them. So getting tough isn’t going to do it, unless the laws are changed to break a strike.

If the Democrats are left to craft the bailout in January, I doubt the union will be weakened by any measure.

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Politic as usual. Follow the money!

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