The Auto Bailouts: Or a tale of Dee and Dum (Tweedle)

To Quote Lewis Carroll,

"The time has come," the Walrus said,
"To talk of many things:
Of shoes—and ships—and sealing-wax—
Of cabbages—and kings—
And why the sea is boiling hot—
And whether pigs have wings.

And Boy oh Boy,do the PIGS in Detroit have HUGE WINGS!


Point One:
(See previous post HERE) discussing whether we are seeking the WRONG Outcome in Detroit.

Based on this discussion, I feel that we need to UNDERSTAND the bailout in much CLOSER details.

Point One: HOW can we expect Detroit to take bailout money, and within three months simply arrive at a new way of becoming PROFITABLE? (See previous post!)

Point Two: In order to (to quote the White House), "Share the pain", we need to spread the pain of the cuts required between employees, shareholders, AS well as suppliers AND DEALERS.

2.1: The Big three insist that they can NOT use bankruptcy as a tool, because no one will then believe in the companies, and their ability to provide warranties on their products.

2.1.a: The answer to this is simply for the auto companies to arrange for INSURANCE with a major insurance company , (such as MET LIFE), that will guarantee warranty service, even past a bankruptcy. (Perhaps PRE-Pay warranty costs in the insurance policy...?)

2.1.b: Once this big problem is eliminated, a PRE-PACKAGED bankruptcy can be negotiated, between the auto companies, the unions, the suppliers AND the DEALER network. ALL these parties must share equally in the pain.

2.1.c: Once everyone agrees in advance, and then the court just goes (in bankruptcy then 30 seconds later the bankruptcy is over.

Point Three: Making the Detroit 3 profitable cannot be a viable answer to the crisis. If we simply tell the companies to cut jobs, we are wasting our money. I don't want to support the Detroit 3. I want to make sure that the three to ten million jobs that they SUPPORT remain here in our COUNTRY.

Point Four: If we want the jobs, but all agree the automobile business in the US is DEAD, then what do the companies do?

Point 4.1: Change them from auto manufacturers into green TRANSIT manufacturers.