Saturday 326

Oh, wait. US car companies don’t make a hybrid sub-compact, do they?

Filed under: Economy, Politics — Tags: — zundel @ pm

Saturday morning is the only time I enjoy NPR anymore. Thank you Scott Simon and Peter Sagal.

Lessons in begging for auto executives” by Scott Simon on Weekend Edition Saturday from NPR 2008-11-22

The sight of three major company auto executives flying on plush private jets to Washington D.C. to ask the American people for a $25 billion bailout is a scene from a Christopher Buckley satire — except it’s beyond satire.


Tuesday 322

Long-term albatrosses

Filed under: Economy, Politics — Tags: , , — zundel @ am

Good to read Friedman in these times:

On G-20 and GM: Economics, Politics and Social Stability by George Friedman in Stratfor 2008-11-17

short-run solutions can easily become long-term albatrosses.

So, we can bailout the US car manufacturers and spare the economy the consequences of many unemployed workers and devastated suppliers, but thereby we postpone much too long needed improvements in the industry.

I suspect the difficult, wise, and unlikely approach would come in supporting the employees and suppliers, and letting the industry fall-down to an appropriate size. But GM, Ford, Chrysler, and the UAW want to keep as much as they can, and get as much as they can, though it will saddle the US with an obsolete industry. Does anyone lobby for the wise choice?

(I drive a Toyota.)

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