I’m not sure how I feel about the auto bailout. I usually am all for letting the cards fall. However, in this case I’m not so sure its the business model that was flawed. There’s something telling about that business model when they are succeeding in every market except the US. As you pointed out in another blog, the difference is unionization of the US plants. If the big three fail, you’re talking about a reduction of at least 20 million vehicles worldwide and hundreds of thousands of jobs. The effect upon the economy would be far more catastrophic than the 4-5 banks who have failed this year. Its even worse when you consider that for every manufacturing plant there tend to be 20 suppliers for parts and materials supporting the build on one vehicle alone. So, accounting for all of these, we suddenly see numbers approaching millions in just employment.

I’m leaning more towards saving them but doing it in a way that negates any previous agreements, contracts, etc. Also, a trustee should be appointed just as would be in a bankruptcy to ensure that maximum value is return to the country (get the money back and then some) over a set period of time. Otherwise, China may decide that they’d like to take over the US auto industry just as they have essentially done with the tech sector, then where are we?