Thursday, December 04, 2008

My Morning Wooten

Jim writes about the automaker bailout.
Congress should not intervene.

Agreed.

That one was easy.

4 comments:

rptrcub said...

Part of me wants to see the fires of bankruptcy cause reform.

The other part of me is reminded that my father works in a diesel-engine fuel injector plant, which supplies Ford, in South Carolina.

Joeventures said...

Saw a quote on CNN from one person saying that nobody will buy a car from a bankrupt car company. I thought to myself, bankrupt in what way? Financially, or morally?

griftdrift said...

rptrcub, as I have a brother who owns a car lot, I have sympathy. Fortunately he's in used cars and he can push Kias as easily as Chevys.

But the bottom line is we can't keep propping up industries with bad business models. Eventually it will come home to roost so we're just delaying the inevitable.

DaleC said...

Bankruptcy will not end the Big 3. They will file Chapter 11, reorganize and stay in business, but with far more manageable debt levels, labor costs and related expenses.

Rptrcub, your father's job is more endangered by high fuel prices than by potential bankruptcy. Ford can't sell those diesel F250's and F350's when diesel fuel is high. Increased energy independence would do more to protect his job than any financial plan for Ford.

Domestic drilling, increased refinery capacity, biodiesel, wind power, tidal generators, increased nuclear capacity, etc.... would remove the pricing pressure form diesel.