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Bailouts

I have previously commented on the Financial Bailout, which I oppose.  The reasons for opposing the Automaker bailout (loan) are even stronger.  In this case there is a long record of mismanagement and failure that provides reason alone for opposition to this action.  In addition the record of large corporate bankruptcies (Steel, Airlines) suggest that this would be a far preferable direction to take. 
Robert Romano summed it up well in today's
Daily Grind:

"In this case, failure is an option. Bankruptcy would allow the automakers to can management and work out terms with labor that will not bury the new companies, or if that fails, to find new labor. It would also allow companies to be purchased by private investors. They could be recapitalized without any government aid. New, modern factories could be built, and the U.S. auto industry could enter the 21st century, instead of perpetuating obsolescence."

Again, as I have stated before, our free market economy depends upon letting capitalist "creative destruction" do its work.  We will all be better off as a result.

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