The DC Hero Bailout for the Auto Industry

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What the hell is all this nonsense about using part of the $700B bailout to send to the auto industry? The US Government shouldn’t be bailing out GM, Chrysler, or Ford. The bailout should come from the people who need these companies to succeed more than anybody else.

In other words, shouldn’t every OPEC country be chomping at the bit to bail these companies out? If I was K.A. up there, I’d already have more cash than I could spend. I’m looking for an investment, especially at the moment. Why not swoop in and not just bail them out, but buy every one of those companies outright. Then have them churn out SUVs at a frantic pace, and give out gasoline rebate deals with them for 5 years of gas at $1.99 a gallon?

The only downside I can think of was if relations become strained between the US and the Saudis, and the US seizes the companies as assets. But oh well, just shut the pipes and bleed every SUV owner dry at $6 a gallon until you recover your (minimal) equity you lost in the auto compaines. I guess it’s just easier to sit in the palace and watch the money come in.

I’m assuming this is a bad idea for reasons I’m not considering. If it happens to be a great idea, I’ll take this post down. I don’t want them getting any ideas.

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5 Comments

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5 responses to “The DC Hero Bailout for the Auto Industry

  1. That’s really clever actually. Come to think of it, OPEC could buy any number of companies that might help them (i.e. defense contractors)

    In the case of the auto-makers’ bailout, it’s a relief to have a national issue that is so straightforward: American cars tend to break down and fall apart therefore people have stopped buying them. If GM and Ford don’t want to go out of business, they should start making decent cars. To bail them out would be to reward their terrible manufacturing standards.

  2. Kyle

    India and China (pro tip: see 1/3 of the world’s population) are industrializing at a rapid pace, in many areas for the first time. The market for oil isn’t going to be shrinking globally.

    Why on Earth would OPEC offer kickbacks to the West when they can just sell whatever the West doesn’t buy to the East?

  3. patrick, I know that Ford at least has dramatically improved their manufacturing standards. Toyota, though it is at the top now, would seem to be the company with a lack of momentum. I know they make a lot of cars in the US now, but the strength of the Yen can’t be helping them.

    Kyle, that’s a good point, but don’t forget that American cars are sold in India/China and anyone who bought these companies would try to make further inroads over there.

  4. Pingback: Mazda concept

  5. ry420guy

    Well done. These are really the types of ideas should come from the gov’t rather than the blog-0-sphere. Of course, that is usually never the case.

    My new theory is that their incompetence is the result of very few of them having technical educations. Most liberal arts subjects teach facts and theories, while engineering sciences tend to place a greater emphasis on problem solving. As a result, our elected officials as a group are not very good at coming up with solutions to problems.

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