Posted by
Middle American Radical on Thursday, November 06, 2008 7:49:21 AM
And so it begins. Democrats are preparing to double down on the bailout of GM, Ford, and Chrysler. Is it really so bad if these companies go bankrupt? Will Toyota get money, too, if their condition deteriorates? After all, they do build cars in America, too. Bankruptcy is what these companies may really need to burn out their financial dead wood and rebuild in an economically sustainable way. When the Japanese economy collapsed in the 1990s, there was a continuous effort to preserve insolvent banks and companies, which created zombie corporations that ate cash, rather than brains. If the Big Three are preserved in their current state by successive government bailouts, they will never attain a corporate structure that can be competitive in this century. They have cancer and the government is giving them palliative care. It's time to give them a big dose of chemo and radiation and finally kill the cancer so that they can return to good health.