Story Comments

Congress is doing exactly the right thing. They are requiring the automakers to explain how they are going to fix their problems before handing them a pile of dough! Notice that Bush and his team aren't jumping to support a no condition cash infusion. Perhaps the Democrats in congress don't want the give republicans the chance to scream 'socialist', as they are prone to doing. Which is what DL would be doing if congress had handed over $25 billion.

I agree with most of your argument for bridge loans to American auto makers. The quality and mileage performance pretty much match or exceed foreign nameplates but the 1980's quality stigma is still taking its toll on market share for the Big 3. In addition the US gov should use the Detroit manufcturing platform for a leap into lite electric rail for the entire US to prepare for the downside of Peak Oil. IMO electric cars are a pipe dream and will be cost prohibitive unless they are designed for short commutes only but they would mesh nicely with nation wide electric lite rail. Matt Simmons says that all the major oil finds of the last 50 years either are or are about to be in in steep production decline. The time window for dealing with peak oil is NOW. We need public and private leadership-where is it? If you're waiting for a 'free market' solution to peak oil, we'll be living in the dark ages first.

Don brings up some good points, such as the idea that we are not looking long term for the going cocern of these manufacturers. Yet, placing the power into the hands of foreign entities is not economically sound. It places a dwindling market share into the hands of those rapidly taking it away, who then possess more power than is rightfully theirs. If you Mr. Luskin believe this to be a necessary evil I ask you to place your perspective not on these 'idiots' who are currently running things, but to who will run it in the future. There are ample amounts of wise and tactful managers, we dont have to go abroad to look for them. Consider the problem Margret Thatcher faced with British Leyland and what became of it. Yes someone will have to take their place, but this country cannot face a marketplace with no domestic competitivness. Congress is deciding to place the money into the hands of those who know where its going to go, underlining the fact that they are not merely throwing away taxp...(Read more of this comment)ayer money. Deciding who and where to place new managers in the big three, if at all, is disconcerting to congress right now. Don, think about who you would place in a high postion to take over a company possessing so many jobs and asking for so much money, when you understand this concept you will remain 'ahead of the curve'.(Show less of this comment)

Wow! It sounds like Luskin the Perma-BULL has finally gone bearish!! Good job, Don--you finally noticed the market is crashing!! I have to thank you--I've made so much money doing the exact opposite of what you recommend. As soon as I read this article, I covered my 'shorts' and went long. So far, so good!!
By the way, you're the biggest idiot of all--you constantly complain about the average U.S. worker (union or not) but you have nothing to say about a CEO making $60 million/yr who takes a corp jet to beg for taxpayer money! You're such a joke!!!