Let's face it the US auto industry has been on a collision course with reality for at least 3 decades. Every thing about it from it's view of the environment (S.U.V.s, Hummer), to it's antiquated production techniques have left it miles behind foreign car makers. These companies are so top heavy in management, and that management has been completely oblivious to economic reality. These firms are poster boys for America's industrial decline.
I won't even mention that a couple of thousand dollars of retired workers'
health care costs are built into each new vehicle. Was there ever a better argument for nationalized health insurance? A Toyota or Honda built in Canada does not have that economic co-efficient of drag.
However we really don't need an analysis of failure at this point as the failure has already happened. The question is what are the costs if we allow the big three to fail. Frankly, bankruptcy when it comes will come in threes. It is almost beyond contemplation what that bankruptcy would mean. The human cost would dwarf any Wall Street failure and the picture
would resemble best the darkest days of the early thirties. How can we throw a 150 billion at AIG and balk at throwing a lifeline to the big three? Can America afford to see 3 or 4 million more out of work?
President elect Obama wants to double up on a rescue package and he wants it now. He wants a 50 billion dollar rescue package and he wants it now! It is passing strange that the government will give 150 billion to one ailing insurer but won't move on saving the auto industry. The repercussions of a failure to act now are just beyond contemplation. Please don't allow this lame dunce to fiddle while Detroit and the industrial heartland burn.