Governors of Eight States Sign Letter Supporting Domestic Auto Industry

218699 Resource 102972 2154 21 1227305628138 1236892444968 Controlled Convincing Evidence that we Should Bail Out the Big Three Hasn't Been Presented

Some say failing to bail out the US auto industry will have disastrous consequences. This worries me but not enough to put my support behind the current non-plan.

The auto industry and our governor are asking congress for $25 billion in loans to keep them from going under. I’ve read the governor’s case for making such an investment and it does seem compelling. Living in Michigan, with relatives that work for the car companies, I am deeply worried about the turn the economy might take if the big three are forced into bankruptcy. However, I haven’t heard what I need to in order to support such an investment. First of all, the guys that have run these companies into the ground need to be gone. They’re infected with the short-term windfall virus. If they’re good and experienced at anything, it’s maximizing profits in the coming quarter. They’ve shown extremely poor performance when it comes to long-term viability, achieving energy independence and selling the American public on sustainable and conscientious modes of transportation. Unless they’re out of the picture, I am opposed to any handouts. Secondly, I’ve heard many claims about the number of jobs that would be lost, the number of people that would be uninsured, and so on, if Ford/Chrysler/GM were to go under. This is indeed very worrisome and keeps me up at night. But surely, some of the operations would resurface somewhere. When companies go bankrupt, their assets don’t simply disappear. Much is absorbed by competitors or other industries. I haven’t heard a realistic analysis of what might occur on that front. Only the worst case scenario is presented. I’ve had more than my fill of fear-mongering from the current administration. If the governor, media and others can’t present a realistic analysis, I must withhold my support. Finally, if I’m to support these loans, I want to know there’s a comprehensive plan in place that will do more than delay the big three’s ultimate demise. Why can’t the car companies treat the taxpayers and congress like investors? Give us an executive summary that tells us: who’s going to run the show and what their qualifications are; how operations are going to change to ensure long-term sustainability; how the big three will become competitive again with foreign automakers; and, what our return on investment will be and over what time-period. If they can’t do that, like any half-way competent banker, venture capitalist, angel investor or fund-manager, we should act wisely and direct our funds at programs that yield well-defined gains. 9 application/xml false auto industry bail out Big 3 Chrysler economy Ford General Motors Governor Granholm Michigan Senate Banking Committee Governors of Eight States Sign Letter Supporting Domestic Auto Industry Letter to Congress Signed by Granholm and Seven Other Governors Requesting $25 Billion for Auto Industry http://www.jennifergranholm.com/site/PageServer?pagename=jmg_home Economy Is Only Issue for Michigan Governor What a day looks like for Jennifer M. Granholm, the governor of Michigan, the state that sits, miserably, at the leading edge of the nation's economic crisis. http://www.nytimes.com/2008/11/15/us/15granholm.html?ref=business Auto Industry Bailout Vote Cancelled by Senate Senate Democrats canceled a showdown vote that had been expected Thursday. http://www.huffingtonpost.com/2008/11/19/auto-industry-bailout-vot_n_145059.html Their board rooms in my view have been devoid of vision. They have promoted and often driven the demand of inefficient, gas guzzling vehicles, and dismissed the threat of global warming. Mozilla/4.0 (compatible; MSIE 7.0; Windows NT 5.1; GTB5; .NET CLR 1.1.4322; .NET CLR 2.0.50727; .NET CLR 3.0.4506.2152; .NET CLR 3.5.30729) 127.0.0.1 127.0.0.1 aseidl 68.40.167.222 false true false false true 173251 false false true false false false true 102972 blog blogsite/Seidl/web