Posted by
Rich from NW Indiana on Monday, December 08, 2008 2:35:39 PM
The
Tribune company today declared it is bankrupt. The publisher of the Chicago Tribune has $13 billion in debt. It isn't going to end operations however. There is no reason to do so. That what Chapter 11 bankruptcy is for.
Which begs the question. Why can't GM file for chapter 11 bankruptcy? It would actually solve many of its various problems. The bailout only prolongs the misery. It will go broke again in the future. Remember we taxpayers bailed out Chrysler in the early 1980's and here we are again once again ready to do so again.
Taxpayers should demand that we not give the automakers any money. They need to declare bankruptcy and reorganize. The bailout has already failed because it will not address fundamental problems with the American auto business.
It will not address: the dealers that they need to rid themselves of, the brands they need to retire, union contracts that don't make business sense, the management that agreed to the bad contracts to begin with, the retirees that need to be funded somehow.
Also bankruptcy would allow a lot of bad debt to go away, makes it easier to end unneeded dealer contracts, opens old labor contracts to fix bad deals. They want the bailout so they don't have to do the hard work that has to be done at some time. This things MUST happen at some point.
The bailout will only help bring an end to American automaking. In thirty years or less, there will be no GM, Chrysler or Ford to kick around anymore. They will be history, because we taxpayers can't bail them out every twenty or so years. At some point the government will not be able to waste our money any more.
Can the American auto industry save itself. Yes, if it doesn't go to Washington for "help". Will it, at this point, thats a big fat NO!