Sunday, December 7, 2008

The Big Three

The Press editorial called it right today:
Why the hell do the banks and Wall St. firms get billions without the slightest condition while the auto companies, who helped build the American middle class, have to grovel, hat in hand

The disconnect in Washington is stunning, and can only be blamed on either bail-out fatigue (Democrats) or hatred of the UAW (Republicans - particularly those from states with non-union assembly plants.) The Democrats know they have to do something. Republicans like Alabama's Senator Richard Shelby would lead us into a true depression if they thought it would break the UAW once and for all.

If this is start of the new bipartisan era, where Republicans force GM into bankruptcy to somehow try to make up for eight year of unbridaled fiscal profligacy, we are in deep trouble.

You can create a new bank or brokerage firm practically overnight. There is nothing to them except money, people and computers. A major manufacturing company is vastly more complex than a bank, and once it is destroyed it will not be recreated. Letting GM go into liquidation would be an American tragedy of epic proportions and cannot be allowed to happen.

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