The thing that struck me, throughout everything, were the statements that the loss of the American auto industry would result in another Great Depression. Horseshit.
As you know, we here in the Fixer household are close to the auto industry. For those who don't know, I've been a mechanic and engine builder for the better part of my life and most of the Japanese automakers are Mrs. F's clients.
All afternoon yesterday, I had to hear how a loss of one, or more, of the Big Three will result in so many follow-on job losses. They extrapolate out how many suppliers will be affected, how many dealerships, all that stuff. I just answer that with one question. Okay, maybe more than one.
Don't you think the Japenese (Honda, Nissan, Toyota) all have contingency plans to expand to fill the void left by the loss of GM (I use GM because they're the closest to the precipice) or any of the others? Don't you think all of them want a piece of that 11-million unit market share? Don't you think they have a detailed plan to hire a good portion of the trained line workers and maybe take over some of the old assembly plants (if they don't expand their existing lines here)? If they want to sell more cars in America, they're gonna have to build 'em here.
Shit doesn't happen in a vacuum and in a free market like the U.S., (did you hear the auto execs whining about not having trade protection from the government?), there is always someone waiting in the wings to step up. If the Japanese, and probably the Germans and Koreans too, aren't planning to take advantage of the situation they'd be goddamn stupid. There maybe a few upstarts we haven't heard about waiting for their chance as well.
It's time we stop rewarding bad management and greed. The CEOs of Chrysler, Ford, and GM were willing to agree to anything yesterday, I would too for that chunk of change, especially if my existence is threatened, but there is ample evidence agreements will go out the window once they get the loot:
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2:29: Sen. Tom Carper, D-Del., asks what the automakers have done for Congress lately in terms of fuel efficiency and responsible spending. Then he addresses questions to Moody’s economist Mark Zandi. Zandi says the federal government should provide aid. He also estimates it will cost $75 billion to $125 billion of taxpayer money from TARP and other federal funds just to keep them out of bankruptcy for the next two years. He doubts the Big Three will "stick to the script" of a bailout and need to be watched, constantly. [my ems]
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Back close to 30 years ago when Lee Iacocca came to Washington with his hand out, he was given a list of conditions he had to satisfy before he got dollar one. It took him 6 months* and when he came back he got what he was asking for. Chrysler, Ford, and GM shouldn't get a dime until they prove they'll "stick to the script" before they get a dime of public money.
Congress fucked up big time with the Wall St. bailout. I hope they don't turn around and throw money at another bunch who are too stupid, or too willingly ignorant, to read the writing on the wall.
*And yes, I realize GM doesn't have 6 months but tough shit.
Update:
And just to be clear. I'm not saying the Big Three shouldn't be bailed out. I'm just saying we should make sure it's done right, that there are serious conditions, and that it shouldn't be done immediately just to stave off GM's impending doom.
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