Still Ignoring the Issue

Another day of headlines on why the automakers need some of that bailout money, and still very little from anyone about how to fix the business and turn these money-bleeding dinosaurs into profitable companies.

Even on the Drudge Report, Republicans as well as Democrats are kissing the unions' butts:

"They should take every step possible, including cutting executive salaries and bonuses, and exhaust all alternatives before coming to the taxpayers for tens of billions of dollars in help," Charles Grassley of Iowa said.

Presumably, that would include renegotiating labor and vendor contracts that keep their business uncompetitive, no matter how much money we throw at them.

I'm waiting for some honest reporter to write about the bankruptcy option. People need to understand that, contrary to what Barney Frank and Nancy Pelosi think, the big three will not vanish the moment they declare bankruptcy. In fact, filing for Chapter 11 protection will allow these companies to prioritize their debts, void their expensive union and vendor contracts, and rebuild their business. That's why bankruptcy laws were created.

Which do you think the politicians are more concerned about right now: The financial performance of the automakers, or the possibility of a very big union losing some big perks for its membership?

And then ask yourself, which is better for the country, and for the creditors, shareholders and employees of GM, Ford and Chrysler?