The Latest Bailout Request: U.S. Automakers

Seems that GM/Ford/Chrysler and the good old UAW were in Washington this past week to beg for some of that taxpayer honey. The problem is that how do they think they are ever going to be able to pay these loans back? I mean their business has been shrinking for years thanks to the innovations and quality of the Japanese automakers building cars here in the U.S. I have to admit some of the latest vehicles to come out of Detroit are truly world class and its a shame that they are in the position they are in. But really it was their own fault. They knew they could not sell to the SUV crowd forever given the massive appetite for petroleum in developing nations and that it would have an eventual effect here. So here they are in midst of a credit crisis with the wrong product mix for the times combined with unsavory union contracts that guarantee that a heavy slice of anything they make goes to pay pension and healthcare costs. People argue that we must not let these companies fail, that it would have a catastrophic affect on the economy and employment in this nation. But is that really prudent to toss good money at a failing business model and hope on a wing and prayer that they can pay the government back in the future? They must be allowed to fail and reorganize into tightly run, competitive and innovative companies that can thrive in the long run.