I remember a time, not too long ago, when I was denied an auto loan. Why? Well duh, I had bad credit, no steady source of income, and an address no more permanent than my hair color...
It's a good thing I didn't get that loan. I was 18 and I needed some tough love. I got it.
But the tables have turned, and now the (American) automakers want a taxpayer loan. Why? They're short on cash, they don't want to declare bankruptcy, they can't afford their burdensome union contracts, and the economic climate has pushed their sales down.
Should we give it to them?
No.
We need to show some tough love.
The companies need to restructure their debt, renegotiate their labor contracts, reinvent their crappy products, shed dead weight (under-performing brands)and create a new marketing strategy. All of which is possible by declaring bankruptcy.
IF they did get a bailout, what guarantee will we have that the money will be paid back? None.
Poor decisions, bad business practices and adversity to change got them in this pickle. More money will not help them get out of it. You don't just pour money into a problem, especially when it's taxpayer money.
If GM needs money, why not try to attract investors? Oh because it's a JUNK BOND, one share is less than a McDonald's value meal.
The government shouldn't be playing god to companies that wouldn't pass the Darwin test.
Honda execs are not flying into Washington in private jets asking for cash (But the American automakers did). Toyota execs aren't pushing massive gas-guzzling Hummers despite gas prices topping $4 a gallon. Newsflash GM, nobody want's a Hummer when gas prices are astronomical (and their Nov. sales figures show it).
And they're not asking for bailouts.
Full disclosure: Btw, I drive a Nissan. Old, dependable, and awesome.
It's a good thing I didn't get that loan. I was 18 and I needed some tough love. I got it.
But the tables have turned, and now the (American) automakers want a taxpayer loan. Why? They're short on cash, they don't want to declare bankruptcy, they can't afford their burdensome union contracts, and the economic climate has pushed their sales down.
Should we give it to them?
No.
We need to show some tough love.
The companies need to restructure their debt, renegotiate their labor contracts, reinvent their crappy products, shed dead weight (under-performing brands)and create a new marketing strategy. All of which is possible by declaring bankruptcy.
IF they did get a bailout, what guarantee will we have that the money will be paid back? None.
Poor decisions, bad business practices and adversity to change got them in this pickle. More money will not help them get out of it. You don't just pour money into a problem, especially when it's taxpayer money.
If GM needs money, why not try to attract investors? Oh because it's a JUNK BOND, one share is less than a McDonald's value meal.
The government shouldn't be playing god to companies that wouldn't pass the Darwin test.
Honda execs are not flying into Washington in private jets asking for cash (But the American automakers did). Toyota execs aren't pushing massive gas-guzzling Hummers despite gas prices topping $4 a gallon. Newsflash GM, nobody want's a Hummer when gas prices are astronomical (and their Nov. sales figures show it).
And they're not asking for bailouts.
Full disclosure: Btw, I drive a Nissan. Old, dependable, and awesome.