From Howey Politics, by way of Fort Wayne Journal Gazette
"DANIELS SEES GOOD MONEY AFTER BAD: In Washington to accept an award, Gov. Mitch Daniels said that with an auto-industry rescue plan, Congress is “in very serious danger of sending good money after bad.” He noted that although the auto industry is a significant portion of Indiana’s manufacturing base, more Hoosiers work in the Honda and Toyota assembly plants than in the plants of U.S. automakers. Daniels said it would be “terribly sad” if GM went bankrupt, “but throwing taxpayer money at it won’t make it work.” (Fort Wayne Journal Gazette)"
Rep, Mike Pence:
"Rep. Mike Pence, R-6th, said he’s not an absolute “no” on a proposal to help the industry, “but I don’t believe we can bail our way out of a failing economy.” He said he would listen to the argument for a loan to GM, Ford and Chrysler, but he is “very hesitant” to use any of the $700 billion financial-sector rescue money to help the auto industry."
4 comments:
That's very interesting. He's a pretty prominent politician in this country, especially since his landslide election victory.
Hopefully more people with good sense will speak out against another bail out.
I may be a lilly livered socialist, but a bailout in this case will not work, it's just throwing more money at the problem. Look how well the other bailouts are doing. Let GM file for bankruptcy, they will have to reorganize and retool their business model. If they fail at that, it will be broken up and shrewd investors will pick off the carcass and start new car companies.
It will be painful in the short term (especially politically) but in the long term the economy will adjust. It's called 'creative destruction.'
Let's start looking closely at the current management and see if they need to stay or go. How's about offering the entire first year of car payments as a tax write off for one year only. That will safe the consumer some money. How's about finding better incentives or managing vs. throwing 50 billion that won't stop the bleeding in the long run. I just saw that American Express re-tooled their company so they can now be in line for the government handout, what a crock of #$%@!!!! I was for the bailout because I thought the rubber had finally met the road, but the car industry might be better off just filing and finding a better way of producing cars.
I have another side to this how will this affect the steel industry with layoffs already happening?
When will the Auto Unions take responsibility for their part in this mess?!?
http://www.youtube.com/watch?v=Tbp3fu58mbg
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