1. It would be illegal under the WTO laws we agreed to.
2. Detroit should have made better cars.
3. Detroit's workers priced themselves out of all reason.
4. Counterparty risk. Goldman Sachs and dozens of other financial institutions relied on AIG to make good on any number of transactions. Had AIG collapsed entirely, they threatened to destroy entire industries. Toyota, Honda and Hyundai have no similar reliance on Ford or GM. If GM should fail, the rice burners stand to GAIN market share.
5. Detroit's PR people are arguing all they need is a "bridge loan." But I don't see the path to profitability - ever. If it's a "bridge loan," it's a "bridge to nowwhere."
6. This is largely a battle over pension funding.
7. The Big 3 have been on notice to improve their offerings for some time.
8. The labor unions made their bed, tying up company productivity with stupid union practice over stupid union practice, and by restricting the free market for labor.
9. If we have 25 billion available, why not use it to buy equity stakes in the Big 3 and then transfer ownership directly to the unions? Would they be happy with that deal? Why or why not?
10. If it's a bridge loan they need, why is no private lender willing to make the loan? Answer: Because repayment is not secure.
11. Those plants and workers don't just vanish into thin air. They could be sold to the rice burners, or to new enterprises. If not, then the lack of salvage value is an argument AGAINST a bailout, not FOR it!
2. Detroit should have made better cars.
3. Detroit's workers priced themselves out of all reason.
4. Counterparty risk. Goldman Sachs and dozens of other financial institutions relied on AIG to make good on any number of transactions. Had AIG collapsed entirely, they threatened to destroy entire industries. Toyota, Honda and Hyundai have no similar reliance on Ford or GM. If GM should fail, the rice burners stand to GAIN market share.
5. Detroit's PR people are arguing all they need is a "bridge loan." But I don't see the path to profitability - ever. If it's a "bridge loan," it's a "bridge to nowwhere."
6. This is largely a battle over pension funding.
7. The Big 3 have been on notice to improve their offerings for some time.
8. The labor unions made their bed, tying up company productivity with stupid union practice over stupid union practice, and by restricting the free market for labor.
9. If we have 25 billion available, why not use it to buy equity stakes in the Big 3 and then transfer ownership directly to the unions? Would they be happy with that deal? Why or why not?
10. If it's a bridge loan they need, why is no private lender willing to make the loan? Answer: Because repayment is not secure.
11. Those plants and workers don't just vanish into thin air. They could be sold to the rice burners, or to new enterprises. If not, then the lack of salvage value is an argument AGAINST a bailout, not FOR it!
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