According to Bloomberg, Obama’s transition team is “exploring” a “swift”, prepackaged bankruptcy for the Big 3 as a possible solution to the industry’s financial crisis, including contacting at least one bankruptcy-law firm to say that Daniel Tarullo, a professor at Georgetown University’s law school who heads Obama’s economic policy working group, would call to discuss the workings of a so-called prepack plan.
When checking with the team’s press office, a Stephanie Cutter said, “We have not put out anything specific for the auto industry except that something needs to be done immediately.”
Congress yesterday gave the Big 3 until Dec. 2 to show a plan of action showing that taxpayers and auto workers would be protected.
So first why is Obama’s team working on something for now? The man isn’t inaugurated as president until January 20th. Obama isn’t even a senator anymore, as he resigned last weekend. And he seems to think his team can come up with something that Congress hasn’t? The arrogance of this man continues to completely shock and astound me. I wouldn’t be surprised if Obama calls Bush and says “Hey buddy, ya know, it’s the end of your term. Why don’t you go ahead and hand things over to me ahead of schedule.” But then again, this is Obama’s “testing” time. The actions and attitude that you see now are a pre-cursor to how he will be once in office, and that frightens me. Between most of his transition team being nothing but his friends, who have absolutely no real world experience in Washington, and the fact that he’s basically making Clinton’s cabinet his own speaks louder than anything.
Obama obviously doesn’t have a clue as to how the real business world works. You don’t just hand the Big 3 their money, a blank check, you ask them for a plan of action. It’s like anything else with business when it comes to asking for money for equipment or a project. You don’t just submit a request for say, a million dollars in a company that makes 10 million a year profit. You have to justify the need for the money, how you are going to spend it, what you are going to spend it on, why it is needed, and how it will be productive and profitable. If you can’t do that, then 9 times out of 10, you are not going to get the money if you can’t justify the need, and your plan of using it.
And with this bailout, there is no guarantee that it’s going to work. The definition of insanity is doing the same thing over and over again expecting different results. Why keep doing something that isn’t working? And why bailout the Big 3, when no one has any money to purchase a new car, because there are over 10 million unemployed people in the United States? And for those that do have the funds and/or credit to purchase a new car, they can’t get loans because the banks aren’t giving loans. Bailing out the Big 3 isn’t going to work. All it is going to do is make an ocean of cars in parking lots, ports and dealerships.
The Big 3 need to fall to change the way they are doing things. Their cars are substandard compared to the rest of the world and are overpriced compared to the rest of the world. Thirty years ago was a different matter, today, I see more new cars broke down alongside the road than I do cars made thirty years ago.
And what happened to Obama’s promise that we, the taxpayers, were the first in line for help when he got into office? All I’m hearing about is the Big 3 and the environment for his first days in office. Bailing out the Big 3 and making stricter legislation on the environment isn’t going to “stimulate” the economy, it isn’t going to give people jobs, it isn’t going to reduce unemployment, it isn’t going to help the stock market, it isn’t going to give people back their 401(k) that are basically becoming worthless, it isn’t going to do anything other than increase our tax liability in the long run.
And what Obama needs to remember is that the Big 3 probably aren’t going to make it until January 20th, and he still needs to get his plan approved by Congress. He isn’t a dictator.