Mitt Romney posted an op-ed piece in the NY Times today with the title of this diary. It is very interesting reading. I agree with it to a point. I agree that Detroit has been screwing themselves for years at the expense of the American people and the future of the American auto industry. They have gotten themselves into the mess they are in and the American public should NOT have to pay for their screw ups. In a perfect world I would agree with Mitt and just let them go belly up, but I can't.
Unfortunately, we are already in a financial hole so deep that I fear that if we don’t help them It may drive us directly into a depression. We’re talking about 3 million jobs and God only knows how many car dealers and part makers would be affected. Their sales are already dropping through the floor, as most other businesses are right now. If they file for bankruptcy, their sales will plummet to a point where the company will not be viable and they will have to shut their doors.
Many have mentioned that if we bail the auto companies out, then we will have to bail other companies out that are going belly up also. This is only partly true. I have heard both Obama and Frank say, "any company that has the potential to drive the USA into a depression must be bailed out, otherwise they should fail". Like it or not, we have no choice.
As much as I hate putting OUR money into these companies for their own stupidity, I don’t see another way out.