Throw out the bailouts!

Finally, we see some sense coming out of Washington. Both parties combined to stop a bailout for the auto industry.

I know, I know, this issue isn't resolved yet. That said, at least our government didn't hand over a blank check...or rather, a $25 billion check.

The lesson today was that ignoring the needs of your customers only gets you so far. Why is the American auto industry failing? The answer is simple; they aren't making vehicles of the type, efficiency, and quality that we have come to expect from foreign auto manfacturers.

A collapse of the big 3 won't kill the industry. Even the foreign manufacturers employ tens of thousands of American workers...look at Honda in Ohio. The brand capital for the big 3 is good enough that there will be foreign interest in purchasing the companies if things slip too far. This is what bankruptcy was designed to cover. It allows a corporation to restructure while providing some relief from pressing debts.

While I don't blame the rank and file workers, I do have to wonder why their unions haven't screamed bloody murder over the mismanagement of the corporations by over-compensated executives. Would it be too cynical to think that perhaps there are some "agreements" in place between union leaders and politicians? Granted, I'm shooting blind here...but I don't think that I'm wrong.