Bailout, round 2: Senate to take up $25 billion bill on Monday

WASHINGTON - The Senate plans to take up a $25 billion bill on Monday to bail out distressed domestic auto companies, but it is unclear whether proponents can muster the necessary support.

Majority Leader Harry Reid, D-Nev., said Friday he “plans to press forward” with emergency aid to automakers and a plan to extend unemployment insurance even though Republican backing is far from assured.

Source: www.msnbc.msn.com...

I've had mixed feelings about a bailout for GM, Chrysler, Ford, et al. since I heard about it. Trying to weigh the positives and negatives of this action:

Positive:

On one hand, yes a lot of jobs are at stake and could be saved;
Government intervention of funds could mean that the UAW stranglehold on the auto corps will be released, especially if a "czar" is appointed to oversee work and possibly distribution of funds

Negative:

GM, Ford, Chrysler have a horrible track record of burning through cash at lightning speed. What's to stop them from wasting this money if it's given to them? Are they going to continue to same wasteful trends of building gas guzzling SUVs and trucks, using the recent dip in oil prices as an excuse to return to their old ways?

And what about rewarding Toyota, Honda and other corps who have consistently produced small, gas-efficient cars AND kept manufacturing facilities in this country to employ American workers? DO they get any incentives or monetary rewards for doing the right things all along while GM, Ford and Chrysler played the 'Black Sheep'?

[edit on 14-11-2008 by sos37]

How about offering free legal counsel to the big 3 in Bankruptcy Court instead.

Break them up, streamline, lose the duplicate model/different label cars, say bye-bye to the unions and hello to the real world. Buy American parts and supplies.