Of Course Big Three Will Be Bailed Out

One reason the Big Three Auto makers need to be bailed out is because we have only three automakers. Due to the government policy of "get big or get out" in USA, we have no small and medium sized auto makers in USA.

Because of the moral hazard of being assured they were too big to fail, auto makers in USA could give away the store in every union contract negotiations, knowing the US taxpayer would make up any loss. The proof is now.

Contact any of the Big Three auto makers directly to buy a car. They will tell you "no." It is against the law. You must buy through a dealer. The number of dealers is strictly limited, and controlled by the auto makers themselves. This limits competition and assures the auto makers can never get squeezed by the auto dealers. This makes sure no independently minded person can open a Ford dealership and offer good service and fair repair charges. (What one can charge for repairs is regulated and published in a book to which all dealers subscribe.)

It makes sure no dealer ever gets powerful enough to demand big discounts to pass on to consumers. It makes sure no dealer ever makes demands to raise quality or influence design.

If you took the money invested by taxpayers in electric car subsidies, each electric car costs about $250,000 and sells for about $25,000. Without subsidies, we'd have clean and green by now. With that kind of income, where is the incentive to win?

USA auto makers benefit from "voluntary restraints." Honda agrees not to sell as many cars into USA as they could, so the ones they do ship in sell for more than they would. Thus Detroit can raise its prices, relative to Japan.

For years Big Govt/Big Three have abused and ripped off the consumer. Now that their system has failed, they want you to bail it out, so they can do it some more. No changes. it is what you voted for when you voted for Obama (or McCain) You voted for no changes.

Detroit can make excellent cars, that can beat anything else out there. I drive the 1997 Cadillac STS. It was one of those models when Detroit manages to bring everything together. It beats anything Mercedes or BMW could make, plus adds real American luxury not hard Euro luxury. A monster Northstar engine in a touring sedan! For $250 you could get the Delco governor disabled so the beast has no problem sailing past 130 mph on out to 150 plus. Not that I would ever drive that fast (or hopefully need to). You can buy used now for around $8000. And now that price of gas is dropping again (of course) who cares about mileage?

My mechanic came out from under the car shaking his head saying "I forgot they make a car where you can tune the shocks... not often you see an electrical connection to shock absorbers..."

Of course, Detroit is blaming the workers for the problems. In America, it is never management's fault.

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