Big 3 Bailout Troubles

The latest plan to bailout the Big3 automakers failed to get Senate approval yesterday because the UAW would not agree to reduce member wages and benefits as their part of the solution. Now Congress wants to invade the original TARP giveaway funds to provide the carmakers with the $15 billion called for in the failed plan. They just can't accept the fact the UAW and the so-called "legacy benefits" costs are at the center of the problem. Only when the total hourly labor costs including the legacy benefits get down to the level of those costs currently in effect at the USA plants of Toyota etc.will American carmakers become competitive. That's another reason why bankruptcy under Chapter 11 is the only thing that makes any sense.

Chapter 11 Bankrupcy

Chapter 11 bankruptcy would offer the carmakers an opportuniy to sweep their businesses clean under order and control of the court. They could reorganize from the top down with people who want the companies to succeed. They could eliminate plants that are outmoded and inefficient and reduce production of vehicle types no longer popular or cost-effective. They could deal with labor on a level playing field and reduce benefit (and legacy benefit) plan costs. They could detail plans for new vehicles while at the same time conducting effective research and development of more fuel efficient and alternative energy powered vehicles.

There will be some jobs lost which is going to happen in any case. Some parts and services suppliers may go under but hopefully they too can reorganize under Chapter 11 and make a comeback along with the auto companies. Many car dealers could go under but could also reorganize under Chapter 11. Employees of all entities from the car makers, to their dealers and suppliers will hurt for awhile but could return to work as business improves. Obviously, the quicker this all happens the sooner things will improve. If the government is going to use our taxpayer money anyway, the best use would be to help those who would be laid off by their employers undergoing Chapter 11.

Throwing Shoes at President Bush

The shoe throwing incident in Baghdad yesterday involving an irate Shiite Iraqi journalist is being hailed by journalists all over the Islamic world. The incident underscores the hatred for Bush and the USA held by many radicals in that part of the world. It was intended as an insult and we shouldn't take it sitting down. The shoe thrower, Al-Zeidi, is in Iraqi custody and for my money should be tried and punished to the fullest extent of Iraqi law! Meanwhile, we should let it be known that we will not tolerate such attacks on our President and will retaliate with force the next time it happens.

Would They Do It to Obama?

Chances are there will be no more shoes thrown at Bush because he has only a few weeks left in office and he has no plans to go back to the Middle East before then. Obama is not likely to be attacked in a similar manner because the radicals like him and his liberal friends. Of course, they could read him as soft and easily bullied which could lead to a lot of trouble for us all.


The GW Bush Legacy


George W. Bush will go out of the Presidency with the lowest approval rating of any of his recent predecessors but in my view he will one day be ranked among our better Presidents. There is little doubt in my mind that the outcome of the recent Presidential election was based on hatred for Bush, not necessarily a liking for Obama. That's what voting based on emotions instead reasoned decision is all about. I can't wait for all the "Don't blame me, I didn't vote for him!" bumper stickers to start showing up.


There are those who hate Bush because of the war in Iraq and Afghanistan, and they dominate the haters as a group. They ignore totally the fact we have not had a terrorist attack in this country since 9/11, thanks to Bush administration policy. Will that continue under Obama?
If it doesn't, our goose is cooked in more ways than one.