There is a lot of talk about bailing out the US auto industry, and it is just crazy. The have already been granted $25B in government loans, supposedly to be used to switch to more fuel efficient cars, with at least another $25B on the way. But today, Ford and GM both announced losses in the 3rd quarter, as expected, along with the fact that THEY EACH BURNED THROUGH ABOUT $7B IN CASH!!! And, since they are private, we don't even know what horrible numbers Chrysler is putting up!
Based on these numbers, and the weakness of the formerly Big Three before the economy went totally south, I don't see how $50B in loans can turn this situation around. They will take our $50B, and be back with their hat in hand next year, and the year after that.....until they finally go bankrupt. Let them take their medicine now, restructure, and maybe turn themselves around. Giving companies this badly run our money is just insane!
OH MY GOD....Sarah Palin is at my door wearing only a towel! I think she wants to borrow a map of Africa.