I am a REALTOR in Michigan. So the auto industry is HUGE here and affects almost everything. But should there be federal bailouts of the Big 3? I don't know. Here is a previous blog on the subject. My beliefs as far as economics - and those are all self-taught and how the hell do I know if they are right - is that, no, free market capitalism needs to run its course and the strong will survive. My personal side says that there are too many people, including friends, family, and clients, and businesses affected by this and its not only the company's fault as government has stuck its ugly damn snout into things and screwed everything up.

How to figure? Again, I don't know so what I've done is create this post with links to stories and articles on both sides. Someone smarter than me and with a hell of a lot more influence will decide. I do know that as a life-long Michigan resident these companies have been in this situation many times before due to all kinds of things, including management incompetence and the unions holding them hostage. And the so-called foreign companies, with plants and American workers here, are not asking for money.

So, I vote "no". Especially if you look at and understand the following graph:


Just comparing the Big 3 to Toyota, that big a cost difference should give Toyota the competitive edge on cost alone and thus the Big 3 adjust or go away.

FYI: while I am collecting articles I'm not finding very many in support of the bailouts...other than Jenny...

Oh, and one thing else, whether you are for the bailouts or not: will all you leftist/Democrat bailout supporters knock it off with trying to blame Republicans if there is no bailout? The slimeballs - especially the despicable Chris Dodd - are saying that without Republican support there won't be a bailout. Listen up, fools: the Democrats CONTROL both houses, they can pass anything they want WITHOUT A SINGLE REPUBLICAN VOTE.

Should We Really Bail Out The Auto Companies?

Say No to the Auto Bailout

Democratic Double-speak on bailout bill

A Cancer on the Big Three: the Jobs Bank

Senate will take up $25-billion auto bill Monday

Chrysler leaders get millions: Automaker defends payouts amid looming bailout talks

New poll says majority of Americans support bailout for Detroit's automakers

Pulling Plug On GM Would Help Both Auto Industry And Michigan

Millions for Billions: Bailout Rewards Big Three's Lobbying

Granholm pleads for fast action on assistance for automakers

Newt and Greta discuss the economy and bailout

Would an Auto Bailout Lead to National Greatness?

The Big Three Mafia

UPDATE: Just an idle thought and question: The Democrats and their willing accomplices in the media are trying to frame the auto bailout debate in terms that if it doesn't pass it will be all the Republican's fault in spite of the Democrats having total control in both houses and can pass anything they want all by themselves. Democrats and the auto unions have hated and worked against the Republicans for decades now, and Detroit/Michigan keeps electing Democrats everywhere. So why would any Democrat or auto union worker EXPECT that Republicans would be eager to get on board and pass something they don't like to help out their political enemies?

There is an answer from the libs: bipartisanship and the good of the country. The liberals ALWAYS want bipartisanship as long as that means going along with THEIR agenda, and if you don't you're a racist, bigot, homophobe, cold hearted, etc., ad nauseum...and that certainly was gloriously shown to us this election, wasn't it...

After all, it was for the good of the country that the Democrats are going to allow drilling for oil off the coasts, right, and therefore make America energy independent and keep gas prices down in the future? Oh, that's right, they're NOT going to allow drilling...well, I'm SURE there is something that they are doing for the good of the country while socializing it.

You see, here's the main reason for being against government bailouts: its the slimeball politicians who get to pick which companies and industries get the money paid out of the pockets of taxpayers. Witness Fannie and Freddie and who got paid off there. And THAT is how the slimeball politicians get and keep their power. The auto companies have already spent more than $200 million dollars on lobbyists. By the way, did anyone tell you that if they do the bailout the government is going to want a percentage ownership in these PRIVATE companies? You boys and girls better be careful what you ask for.

UPDATE II:



More articles:

6 myths about the Detroit 3

Why we should allow GM to go belly up





Detroit: Same Old, Same Old

Fixing GM in Three Easy Steps

UPDATE III: Final on this post
A page with all of the Cato Institute's links to articles on the global financial crisis, including the bailouts