The Big Three
I have been amused by all of this cold, rational discussion about the prospective Auto Bridge Loan as to whether or not the country should "just let Detroit die" as if no actual people live or work here whose lives would be destroyed by that choice.
And when I say amused, I really mean seething.
And when I say amused, I really mean seething.
"Renegotiate the contracts they're in" is code for breaking the UAW which is stupid. Yes, the union could have done some things differently, but they have made concessions to keep these companies afloat. Expecting them to be okay with the big three wanting them to work for $5 an hour is kind of ridiculous (not that you're saying that, but I do get that from other people).
And the kind of bankruptcy they're talking about is Chapter 13 I believe, which they cannot get as that would put on hold all of their debt until they can reorganize, which (as far as I understand it) would then flow downstream, causing all of their suppliers to go bankrupt, and mechanics, etc. It's really liquidation or the government steps in.
Now don't get me wrong, I'm a big fan of the government telling them that they don't get a dime until they do any number of useful things (like bring up fuel standards). I applauded Pelosi and Reid for what they did on Friday. But, I cannot support the idea that because the upper management at these three companies made some bad decisions (which they obviously did) that's worth putting three million people out of work (1 in 10 people in the US have jobs in or related to the auto industry) and completely destroying the economies of an fairly large region of the country, and I get annoyed at people who don't stop to think that that's exactly what not helping the industry with a loan from the amount we've already set aside to help faltering financial companies. That's all.
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