BANKRUPTCY DOES NOT MEAN CLOSURE
Just as we were told that the $700 billion bailout of the financial system had to be done within hours, giving no time to reflect on the consequences - the pros and cons - else the sky might fall, we are now being told that bankruptcy for the Big 3 would be the end of the American auto industry. Bull! A structured bankruptcy if probably the only thing that will save it. The "bailout" isn't really about the Big 3. It is about the UAW. Too many in Washington owe too much to the union. And, a structured bailout would not accomplish what they want to accomplish - control over the manufacturing process.
If the companies go through bankruptcy without the government becoming their partner, they will be able to pursue profit through a free, though heavily regulated, market. But, in the words of Tom Raum, Associated Press, "Longer-term proposals being developed by Obama and congressional leaders call for an equity stake for the government and a chance to dictate business decisions for years to come." Government control practically guarantees loss of profitability. If all this goes according to plan, ala Reid and Pelosi, I can foresee the day when auto manufacturing will be subsidized, and controlled, by the federal government in order to "save" it.