There! Fourteen billions for big3 autos

[theRepublic]

akuma587 said:

halogamer1989 said:
Yup another bailout recommended and overseen by none other than Elmer freakin' Fudd. Barney Frank needs to grow a pair and learn to obligate MASSIVE overhaul and not just take the $$$ and run schemes. As for the necessity to fix their problem with the money disbursements--r u kidding me! Fix the crap first and then bail out what is left. File for Chapter 11 and restructure. Hell, merge GM and Chrysler and get rid of the redundant fleet.

While I do agree that Chapter 11 would solve more of GM's problems than a loan would, the last thing the economy needs right now is more bad news.  The economic environment has gotten even worse since GM et al first asked for a bailout.

And this plan seems to be much more well-implemented from the start than the $700 billion bailout.  Not to mention it is a fraction of the price.

The economy can't just keep taking every punch that's thrown at it, or we will sink into a depression rather than just a recession.

 

Although I'm not sure if I support this bailout or not, there is an interesting argument against bankruptcy.

When some of the airlines filed for Chapter 11, people continued to fly with them because it is a one time service that occurs only a short time into the future.

When you buy a new car from a company in Chapter 11, you have to worry about if that company will continue to exist.  That means you have to worry about your warranty, parts, and service for the vehicle.

I heard on the radio about a poll that said about 80% of Americans would not buy a car from a company going through bankruptcy.  I'm not sure how much faith I have in that number though.