Comments on: Morning Bell: Bankruptcy Is Best Way to Save Auto Industry

By: Larry, Fremont, Ohio

Larry, Fremont, Ohio — Mon, 15 Dec 2008 16:25:29 +0000

The only way and the capitalistic way is to let them file bankruptcy. I will, however, be suprised if the leaders in Washington, who know little if anything about business, economics or plan common sense, will allow this, as they are in bed with the unions, and it is all about them and what they can do to be reelected. When I head of the "Car Czar" I thought what a joke. The only thing the Czar and his cronnie Washington pals know how to do is spend other people's money, our tax dollars. We need term limits, the whole bunch should be thrown out or impeached. But what can we complain the only people we have to blame is the person we see in the mirror every morning, we put these idiots in office.

By: Wes Thompson

Wes Thompson — Mon, 15 Dec 2008 12:02:10 +0000

Maybe we shouldn't bailout the auto industry but what happens when the US AUTO INDUSTRY goes under? Do you all want to drive around in a foreign made automobile, I don;t. I am AMERICAN and believe in supporting the American way of life. What happenes to the AMERICAN way of life when we lose all this to China, Japan and the other countries that all of our loved ones fought in the wars to keep independent and free. We (our government) just authorized billions to save the lending institutions, for what< tehy are like the auto industry and caused their own destruction, same as the auto industry. Why did we bail out the len ding institututions? we are becoming a nation of Foreign owned companies now, what's next?

By: Tim, Arcadia, CA

Tim, Arcadia, CA — Sat, 13 Dec 2008 03:58:27 +0000

I totally agree that letting the auto companies go bankrupt is the way to go. The shocking statistics quoted from USA Today seem to say that federal spending is becoming too large for the size of our shrinking economy. The solution to the economic pickle that we find ourselves in is not higher spending from the government. Indeed, the (sorry, folks) auto companies need to pull their heads out of their derrieres and face the music along with the rest of the world, because the whole world is going in the tank. They need to face up to the irresponsible way in which they have handled themselves and the situation in which they have found themselves.

Bankruptcy, as was pointed out, is not the end of the companies. Instead, it is one way that the companies can declare publicly that the way they have been conducting themselves has been nothing but self-destructive, with ripples of economic damage and harm to others. Bankruptcy is the way they can "save face" and redeem themselves. They can pick themselves up, change directions, and work to design better cars and contribute to the economic health and welfare of the country as a whole.

It would especially be good if they could stay in Michigan too. Michigan has historically been in the bottom economically. What economic maladies the country has Michigan tends to have worse. I used to live there, and I know how things have been there and I know how the economics of that area gets spun.

By: W Howard Baker, Bard

W Howard Baker, Bard — Fri, 12 Dec 2008 20:26:30 +0000

WHY IN THE WORLD DID THE PRESIDENT UNDERCUT OUR SENATORS? Our conservative Senators had the bill stopped with heroic action against the socialist left and then he undercut them with the TARP funds.

We are rapidly heading into an inflationary depression which produces fascist tyrants like Hitler, Mussolini, and good old Hugo Chavez, so hold on for one heck of a ride and the end of America and the birth of Amerika.

By: William Wynne

William Wynne — Fri, 12 Dec 2008 15:11:33 +0000

The GM piece of the puzzle.

Years ago John Z. DeLorean–no paragon, to be sure, but one who knew well the GM management culture–observed that the corporation was incapable of changing from within. Chapter 11 is the only option for the company's long-term survival.

During WWII a relatively lean model of management (the legacy of Alfred Sloan) gave way to an increasingly bureaucratic style. The result of the wartime command economy.

Under the disastrous leadership of Roger Smith, design, production and marketing gave way to investment strategies. GM's chief product shifted from automobiles to careers. Under Smith's reorganization program, a marginally functional management bureaucracy collapsed and re-formed into another in which lines of authority and responsibility became hopelessly blurred. Predictably, by that time, the remedy was to add more bureaucracy.

By: mike hutchings texas

mike hutchings texas — Fri, 12 Dec 2008 12:31:42 +0000

let them go down and pull the healthy parts off the old clunkers. the leadership of the big three is a playground of insulated corporate and union elites who will be grafted onto the goverment.You only have to look at europe to see how well it works when goverment(fascism) takes control of industry.I find it ironc that the peace loving lefts power base is built on WORLD WAR TWOs british economic model that introduced the socialist welfare state that spread from there across the smoking embers to the frontier of russian communism as counter balance. they became like thier enemy when they fed on his remains and failed to introduce any thing other than the peasant based tactics of control that socialism is for the good of the state.Two poles balanced aganst each other till one absorbs the other must reach out to another polarity to continue to exist lest it consume its self as old europe is doing. I suppose that leaves us as the main course and honored guest at the next cannabals pick-nic. We are lead by a gaggle of oh so reasonable honking geese, fluffing thier feathers, shakeing thier heads while pea sized brains rattle behind overlarge bills evolved to trumpet thier deeds to the faithful.REAGAN understood why that wall had to go down and what the peril of propping it up posed to a degraded west grown comfortable with state villany.let them go down and at least kick that foot out of the door.THE UNIONS ARE DANGEROUS TO THIS COUNTRY.

By: Kevin Somerville C

Kevin Somerville C — Fri, 12 Dec 2008 04:05:44 +0000

Isn't it ironic that conservatives applaud the japanese automakers for beating us? These companies enjoy huge government healthcare subsidies that would make anyone at the heritage foundation cringe! I agree that bankruptcy is now the only option, but it is intellectually dishonest to say that it was because of a failed business model. It has more to do with a beggar thy neighbor attitude among americans who would not come together to address our common problems. For those of you who believe your region or industry or whatever is safe, think again. This nation is no longer a nation, and we are all on our way to the poorhouse.

By: Bankruptcy Is Best Way to Save Auto Industry « Conservative Thoughts and Profundity

Fri, 12 Dec 2008 02:57:18 +0000

[...] Bankruptcy Does Not Mean Death: The auto nationalization cheerleaders keep claiming bankruptcy proceedings for the Big Three automakers would cause a loss of 3.3 million jobs. This is a completely fictional number that assumes all three automakers would go bankrupt simultaneously and that all three companies would then immediately cease all operations entirely. Both assumptions are completely false. Ford has said repeatedly that it is in better financial shape and does not need taxpayer money. Furthermore, under Chapter 11 any firm that did declare bankruptcy would still be able to operate under the protection of a bankruptcy court. Continue reading . . [...]

By: Gary Q., El Paso, TX

Gary Q., El Paso, TX — Fri, 12 Dec 2008 02:06:58 +0000

I could not AGREE MORE…

This is EXACTLY what the Bankruptcy laws were written for, by the same MORONS in Congress that think THEY can run anything…

I say maybe we need a CIVIL UPRISING, Enmasse, to through the bums (Thieves, scroundrels, and PROFESSIONAL SCREWUPS) OUT on their "Ears" (lol)…

Besids, I donn't want an "AFRICAN-American" presiden, or any Govmt. position.., I want 100% red blooded AMERICAN (No Hyphenation, no such thing as dual citizenship). Don't care about skin color, I care about PATRIOTISM!!! If you put another COUNTRY before AMERICAN, then GO THERE!!!, and GOOD RIDDENCE!

By: David Barth, CFA, Ju

David Barth, CFA, Ju — Thu, 11 Dec 2008 23:54:08 +0000

The Administration, including their trust in a Treasury Secretary from Goldman the invisible government, and Congress have made terrible mistakes and want to compound them with bailing out the auto companies. The suppliers will continue to supply, the workers will continue to build cars and the mess can only be cleaned up with a reorganization. Production will not cease!!

Had the Administration in 2007, when Bush advised people to call their lenders if they had trouble paying on their mortgages, that the taxpayers were not going to bail out anyone this financial crisis, caused by Wall Street Greed not an inventory recession, would be over. He made the FDR mistake of giving people the idea that they didn't have to do anything as Uncle Sap will bail them out. Can one imagine a twelve year recession in the U.S. with its entitlement culture? There will be crime like we never saw it and the economic policies being proposed are doing more harm than good.

Now they make stupid statements that they want to hurt home buyers by keeping prices up and further incentivize them to hold off buying as they may get 4.50% loans (govt setting mortgage rates). Do they really want to fix prices for homes and price qualified buyers out of the market? Are these people completely unbalanced? All those who made millions trading pieces of paper on Wall Street only could have such a mind set. Harvard and Yale is stamped all over this nonsense.

Bernanke has stated plainly and publicly that he wants to devalue the dollar and there is no doubt in my mind he will do it. Obama, who made the horrific statement that "the economy will get worse" shows he has little leadership qualities and with the Clinton Like Cabinet he has we can expect an "Industrial Policy" with politicians and bureaucrats picking winners and losers.

Let's face it, FDR kept us in depression for close to twelve years before Hitler's invasion of Poland cranked up our industrial might. The twelve years tells you something about his policies and I remember visiting my dispirited, intelligent father shoveling dirt from one side of the street to the other while working for the WPA. What a waste of intellect!

I see little to be happy with a Chicago Socialistic Pol leading our government. The terrorists must be thanking Alla many times a day.

I wonder if anyone in Congress or the Administration understands that Daimler owns 19.9 percent of Chrysler. Are we going to bail out a German company, as well as the "smartest in the room" private investors who knew they were buying a pig in a poke?