Saturday, December 13, 2008

Bush Should Do the Right Thing - Don't Do Anything for the Auto Industry

It seems like Bush does not want to leave the Presidency with the potential of the auto makers going into bankruptcy. His legacy has already been written into history and any last minute acts to save the auto industry will be destructive to the US economy.

By providing funding from the TARP he sets a dangerous precedent and give his successor some ammo to bail out other industries.

The problem is that if he bails out the auto industry there are going to be other industries from retail, airlines, insurance and on and on that is going to look for handouts.

Obama will use this precedent to enrich his favorite industries, especially with those with high union membership.

Just say no and let the auto makers go into a pre-packaged bankruptcy. Let them emerge as more leaner and more competitive entities. Chapter 11 bankruptcy was designed to allow entities and individuals to get a fresh start and that is what the auto makers need now.

Let them do this before the Obama admin comes in and nationalizes the automakers by taking equity stakes in them. Why would a car czar know more than the auto makers? It is idotic to think that micro managing these entities will get them out of their current mess. They need to do with the help of the bankruptcy court not the government.

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