As more information becomes available, it becomes clearer that the bailout, even if it took place as I cautiously offered here, would be bad news.
In doing the math, the feds would be throwing $25 billion at an industry that the market currently values at only $7 billion - and that has a net worth in excess of $200 billion in the red.
Without bankruptcy, the manufacturers have no chance to obtain debt relief, escape their UAW contract and set on a proper course. As of right now, the group most in favor of the Detroit bailout is understandably the UAW.
- On Being Heroic
1 hour ago