Reading more about the Big 3 is frustrating. They were in trouble well before this credit crisis, and this credit crisis is definitely the straw that broke that camels back. But this industry has long been flawed. It’s amazing to me the Big 3’s CEO’s would have the audacity to come before Congress so inept, unprepared, and clueless. Like they had some right to the bailout money. They had no plan in place, no details, or concept of what they would do with it. I’m sure they had some sort of notion, but they failed to show Congress they did. On top of everything, just like Enron’s bigwig’s they flew in corporate jets to the hearing. You cannot be connected to the outside world if you think you’re going to beg for money for the goverment and spend $20,000 just to get to court. Are they lunatics? Have they not learned from Enron? I am appalled how clueless they seem to be about their persona to the rest of the world, to the rest of the nation, to it’s very own state. This “right of entitlement” attitude is unbelievable, but that’s the same attitude that let the foreign automakers somehow get a competitive advantage. It isn’t necessarily okay to bailout wall street and the financials, and then turn a blind eye to the automakers, but it doesn’t mean we have an endless well to draw from either. The banks didn’t fail because they were behind the eight ball, they didn’t fail because they were losing to competitors, they failed because they made stupid gambles, quit acting like banks, and were on the wrong side of credit-default swaps, securitization and leverage brought them down, greed and stupidity. The big 3 are failing because they aren’t efficient, they have to many grandfathered debts (healthcare, union, penions, etc), the competitors are simply more profitable. How will a short term bailout change anything in the long term? If the banks act like banks they practically mint money, not anywhere near 20% but a nice slow steady growth, that’s if they act like banks. The big 3 however is losing money every quarter, they aren’t making money, how is chasing bad money with good money a good idea? They at least need to have a game plan, you can’t win the game if you don’t know the rules. If you can’t sell goverment on a bailout how are you going to sell a car on a lot?

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s