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  • The Auto Bailout: A Lesson from the Russians?

    Not only can we learn from the Russians, the Russians can learn from themselves. This comes from Marginal Revolution:

    One headline reads: Detroit Bailout is to Bring on U.S. Oversight

    The other reads: In Hard Times, Russia Moves to Reclaim Private Industries

    The Russian automobile sector, however, appears to be booming and it is not mentioned as a candidate for nationalization.”

    In Russia, the commercial automobile market is expected to jump 14% during 2008-2012.Meanwhile, in the draft text of the auto bailout here in the United States:

    It is the sense of the Congress that, should an eligible automobile manufacturer be unable to reach agreement with all interested parties on a negotiated plan that can be approved by the President’s designee within the time frames provided by this Act, the Congress should act expeditiously on the recommendations of the President’s designee on actions necessary to achieve a viable long-term plan through negotiated or legislated restructuring.”

    So let me get this straight. Russia wants more nationalization even though their auto industry, which is privately owned, is booming. And now Congress has said that if auto manufacturers can’t reach agreement on restructuring with all interested parties, then Congress should legislate a plan for them. Am I missing something?

    Congress hasn’t had the best track record of becoming ‘all-of-the-sudden’ business owners and it appears to be a lose-lose situation. On one hand, we’re handing out taxpayer money to subsidize the status quo. On the other hand, we’re allowing Congress to write private companies’ business plan and have tight control over the auto industry. There’s a way both of these concerns can be resolved and that’s to take the bailout money off the table.

    Posted in Ongoing Priorities [slideshow_deploy]

    5 Responses to The Auto Bailout: A Lesson from the Russians?

    1. werner fuerbacher, m says:

      When the Banking and Financial Industry came to congress, they were showered with money by the very same democrats who now are hammering the auto industry which needs money as a result of the turmoil created by the politicians and the financial institutions. If this credit crisis had not occurred the auto industry would never be in front of congress asking for help.

      The same democrats who fell over each other giving money to JP Morgan, Citibank, AIG, GE, etc, are now grandstanding with our auto industry which contributed untold wealth and prosperity to the United States.

      It is the same old game, nothing has changed. The innocent get hammered, while the crooks walk away.

      Pelosi, Reed, Dodd and Franks who orchestrated the financial mess we are in, are redirecting the attention to the auto industry, so the spot light comes off their own short comings. Shame on them.

      For those of you politically challenged, the people I mentioned are your democratic leadership and now you have to live with it.

      The Auto Industry over the years has had a tremendous impact on the American success story with technical innovations reaching far beyond the automobile as well as providing a huge amount of economics success to your family, friends and neighbors.

      How quick one forgets? Think for a minute where we would be today without the auto industry? Even the media, who now is grandstanding against the auto industry, would never have realized their original growth without the ad revenues from the auto industry.

      I never heard the Press, nor any TV station complain about the Ad Revenues derived from the Auto Industry as excessive. Even you, the reader, at some point benefited from the auto industry.

      The same politicians who stood in line with the auto workers demanding the very benefits that the politicians now claim are excessive. What hypocracy.

      Werner Fuerbacher

    2. Pingback: The Auto Bailout: A Lesson from the Russians? « Conservative Thoughts and Profundity

    3. richard traxler we says:

      The government can not solve this problem, they are the cause of it.

      Back in 1976 I had a station wagon which got 41

      miles per gallon, which seated our family of five very comfortably.

      Then along comes our government, which of course knows so much about making cars, then mileage dropped like a rock with all the added requirements of our wonderful government.

      There is no way the big three can ever survive under present circumstances. Let them file bankruptcy and start over.

    4. Marshall Hill-Michig says:

      Did the Banks and Mortgage Brokers have to look at Chris Dodd and his Business Savy?

    5. Pingback: Italian Cooking Class with Dean Martin & Guido

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