Serving Bread

Comment from bo December 3, 2008 at 10:14 am

i feel very strongly that we should not bail out the auto industry. it’s like bailing out a restaurant that makes bad food. the economy may be a factor, but really, the food is bad. is giving them money really going to solve this problem? also, i don’t believe in bail outs or tax increases (i guess this is a different subject). the industry should face the consequences of poor decision making and lack of excellence. instead of pouring more money into failing industries or pumping more money into state governments, we really should cut budgets. i mean, isn’t that what we do as individuals? if we are going into debt, is the right thing to do to borrow money or give that person more money? instead, they should cut their spending.

Comment from Tom December 3, 2008 at 3:57 pm

I agree with Bo, though I’m also very concerned with the tremendous damage their bankruptcies will create. Still, hard to know if there is any other way than to finally face the music.

What’s sad is the product in Detroit is actually so much better now than its ever been; they’re paying the costs of mistakes in the past that lost them rep and market share that they never recovered, and also huge legacy outlays. Bankruptcy could help them deal with the latter,and hopefully, if they can get some leaders with more of clue than the clowns that showed up in Washington the first time around, they might be able to reverse the former issue. Certainly, markets around the world for cars are going to boom once this downturn passes, and all three are pretty well positioned to take advantage of that. So it’s not all doom and gloom.

Comment from humblecause December 9, 2008 at 7:25 pm

Well, our good Friend Obama identified and articulated the problem with bailing out a failed business model. I saw a new clip a day or two where he said more or less that to bail out a business that does not have a coarse that will provide sustainability, then where just throwing our money away. Those weren’t exactly his words as it was a news flash not a newsprint that I can cut and copy. Now while I commend Obama’s definition of the problem, I will be very surprised if he comes up with the right solution to it. I see the bail out quite similar to a surgeon that pumps blood into a mans arm with out closing the wound on the leg. It can be depressing at times to think how dumbed down we as a country have become.