It's the economy, stupid

I agree with SIL that the recent showing of the big 3 auto execs was a public relations disaster.

So now they have come back and done a 180 which, in my opinion, is still a disaster, not of arrogance but of meekness. I suppose the public is taken in, certainly enjoying, the grovelling of high persons brought low. They are receiving no compensation. They have abjured flying. They are driving "green" cars. The only cue they missed is that instead of staying 3 in a room at a suburban Red Roof Inn they are probably lodging in a luxury hotel. I wonder that the media haven't yet commented.

This is all window dressing and much of it, frankly, irrelevant. The automakers are not going to become profitable by making more "green" cars. There is little profit in them and they are harder to sell to the public because they are more expensive to make. The politicians love to hear this lip-service to environmentalism even though no one but bright eyed fanatics takes this seriously.

The bottom line is to avoid bankruptcy which would be an unmitigated disaster. As it is, high gas prices (which have mitigated somewhat) and the lack of credit have dealt the auto companies a double whammy. If they go bankrupt, it will add a third dimension to the problem in that no one will want to buy their cars. The resultant downward spiral is obvious: fewer cars built, fewer people have jobs, fewer people can afford cars, even fewer cars built, etc.

If the companies can get bailed out now, get their expenses under control, and negotiate with their unions, they have a chance that some day in the future people will again rush to buy trucks and SUV's. Even if that doesn't happen, a slow attrition will lessen the effects on the US economy. It's worth the risk to the taxpayer.

In the meantime, I'm offering either Waggoner, Mullaly, or Nardelli $10,000.00 a year to run my business.