scfranklin94

Obama's Sweeping Changes for America's Cars

So I should buy a Porsche Turbo now before it gets legislated out of existence...

Whatever Happened to Bankruptcy?

James - propping up failing businesses only puts off the inevitable. Not that I'm a big fan of his, but Krugman is already calling for the next decade to be like Japan in the 1990's - deflation and economic contraction. So we can either spend money to keep people in make-work jobs with zero economic growth for a decade, or we can either let the market run it's course and try to set ourselves up for the best chance for economic growth.

Consider 'Pull' Rather Than 'Push' for the Auto Industry

Let the car companies go into bankruptcy; wipe out the stockholders and allow the companies to downsize their dealer networks. GM should only have Chevy and Cadillac after the reorganization, Buick, Pontiac, and GMC should go the way of Oldsmobile. Not all the jobs will be lost; just those that are unproductive.

The Biggest Problem Detroit's Big Three Face

Allow the companies to go bankrupt; this is the only way GM and Ford can downsize their bloated dealership networks. Hopefully the entities that emerge from bankruptcy will have a way to make a small car for a profit. If we support GM and Ford now, we better be prepared to write another check for every year going forward. The main problem is that the companies have more retirees than workers, but their pension plan is dependent on current car sales to meet liabilities - it will never work.