I have heard and read thousands of words about the auto industry bailout. I have been appalled at the lack of knowledge of just about everyone who is commenting on this situation. There is much blame to go around, but the one journalist who has been writing the best analysis of the situation the auto industry is in is Warren Brown, who writes about cars for the Washington Post.
Over the last few weeks, Warren Brown of the Washington Post has been writing what I think is the best analysis of the situation the automobile industry is in. His article in today's Post, Perceptions of Detroit are Miles from Reality is possibly his best piece on the industry.
Today's article is constructed by providing a Perception statement and then following with his view of the Reality. The best summation is the following:
Perception: All Detroit needs is deep restructuring and federal bailout money for long-term viability.
Reality: Wrong. Detroit needs what America sorely needs -- a Congress with the leadership chutzpah to devise and implement industrial and energy policies that will help to keep native manufacturing industries alive. Detroit's problem isn't poor products or lack of products. It's a national government still wedded to the debilitating siren song of cheap gasoline. It's a nationally collapsed financial system. And it's governmental hypocrisy -- our willingness to pour tax dollars into foreign enterprises, most of them not unionized, while griping about doing the same for homegrown, unionized manufacturers largely responsible for building America's middle class.
I recommend that everyone read the whole article: http://www.washingtonpost.com/...