re: #480 garhighway

The solution to the auto industry’s problem was the solution eventually found for GM and Chrysler after their respective multibillion dollar bailouts - bankruptcy reorganizations. Even then, both those companies are in poor shape - and the combination of bad management and awful union deals contributed mightily to their positions, especially when you look at those companies’ exposure to the financial meltdown through their financing arms (GMAC in particular).

Ford didn’t go that route because it vigorously reorganized and trimmed the fat and problems within the company and renegotiated its debt.

GM and Chrysler took the bailouts. All those bailouts did was leave taxpayers on the hook and string the companies along for a few months more until they entered expedited bankruptcies. Those billions would have never been spent had the companies directly proceeded into reorganizations - and for that I blame Bush. And then I blame Obama, who extended additional bailout funds to both companies, even though reorganization was critical to turning those companies around.

What’s worse is that the feds then took ownership positions in GM. GM is clearly seeing that people are loathe to buy GM cars because GM’s Whiteacre can’t wait to get the feds out of their ownership position so that the company can begin issuing new stock but the feds are dragging their feet.