So many questions...
- If Mr. Paulson's TARP (Troubled Asset Relief Program, aka the Bailout) to give money to banks in exchange for some form of equity is such a great idea, with taxpayers reaping rich rewards in equity appreciation, how come smart investors like Bill Gates and others aren't rushing to buy up bank shares? We did not hear Bill Gates saying that he would be giving a few billion dollars to a bank.
- Nardelli says Chrysler needs money to avoid bankruptcy. Why should the government bail out the poor decision of Cerberus? Mr. Nardelli, how about coughing up all the dough you took from the companies you ran (to the ground) before asking for money?
- GM's Wagoner was also asking for a bail-out. If you cannot get some long-term product development in place over decades, why would a short term financing of $25 billion help? Your products are lousy, and any discerning customer would find and buy better alternatives.
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Re: The U.S. auto industry dilemma
Yes, the are no answers to your questions.
Is there an answer to a related question, the question, "What should we do?"
One position is that the automakers have repeatedly failed and U.S. citizens owe them zilch.
Yet, if we do not provide some kind of temporary $$ support, U.S. citizens themselves will be hurt, bad.
Has this issue become analagous to a kidnap - hostage crisis? And we know that most such crises have no simple answers regarding "what to do."
If the commonplace is reasonably accurate, that the economic well-being of something like 1 in 6 U.S. citizens depends heavily on the auto industry and all its sub-industries, can the representatives of all U.S. citizen's refuse to authorize support, call it a ransom payment, humanitarian aid, or a national security maintenance payment?
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