Vampire Cat or No Bailout for the Auto Industry

I was torn today. Two things have been on my mind recently. My kids new made up game called "Vampire Cat" and the debate over whether to bail out the auto industry. Hmmm what to write about... I do not know. Vampire Cat is a hot activity at my house. But I have to admit its a mystery too. Yes, the cats are involved but I don't think they know it. The kids dress up in their fiercest vampire fighting costume with weapons in hand. The silently track cats around the house. And when they find one curled up somewhere they run to a dark corner and plan their attack. Once in a while I see a cat running by. My room is a sanctuary for them. I do not let the kids chase them in there. (I know I am mean.) This is all I know about Vampire Cats.

I am not sure I know anymore about the bailout. But I have my opinions. First the auto manufacturers have been havcing problems for years and alot fo their capital is tied up in contracts with the Unions. Between gas prices, SUV consumption and consumer rejection fo such large vehicles which didn't happen over night but has been declining for years the trouble was already brewing long before the economic crisis we are in now. There were many changes needed in the auto industry including reducing the cost of parts which seems to have ballooned their budget. Cost controls have been ignored while executives have lived with the status quo and ignored the writing on the wall.

Only recently the Big 3 have been given 25 Billions dollars toward implementing the manufacturing of more energy efficient cars. This money has not even gone their way yet and they are asking for more. They say they are running out of funds to even operate. Can we honestly say that the economic crisis is to blame for their lack of planning or their need to change what they produce. Giving this industry even more money while allowing them to continue doing business as usual is poor management of the tax payers money. Never mind that the 700 Billion already allocated to help out the banks has no oversight. Can we afford to invest in companies to need a full overhaul of the way they do business.

A controlled bankruptcy would allow them to continue doing business while giving them incentive to scale back production, cut costs and reevaluate the current management system... as well as to look carefully at the contracts they have with the Unions. I know that many Americans have worked long and hard for these companies and their futures should be protected where ever possible including retirement and pensions. But this country can not afford to subsidize the Big 3's salary contracts for an industry that is failing.

That IMHO anyway.

The one thing I do know for sure. Vampire Cats sounds a lot more fun than trying to figure out how to save our economy from a free fall.