Wednesday, November 19, 2008

Bail out the auto industry? How about some help for consumers first

Even if they give the auto industry $25 billion in bailout assistance -- where are they coming up with all this money anyway? -- it won't mean the auto industry will not layoff another round of workers. They will. This bailout is to save the greedy CEOs and Executives who are making millions and don't deserve it.

Why is the American auto industry in trouble? Becuase they make bad cars. They knew in 1974, after the Arab Oil Embargo, that Oil was going to be a problem. And still, they refused to make better and cheaper and more gas efficient cars. Instead, they made cars that appealed to the macho-image of some. Gas-guzzlers that cost a fortune and padded the profits of the auto industry CEOs and executives.

Now, because they did a lousy job of running their companies, they want the American taxpayers to bail them out? Are you kidding me? If the CEO of a company -- even the owner -- mismanaged a company so bad that it was on the verge of collapse. THEY WOULD BE FIRED. So, fire them first before you get them one red cent.

Foreign car makers are doing what American car makers were to greedy and arrogant to do. They make better, more reliable cars. And, you can bet the first real energy efficient cars that make real progress in conserving gasoline usage will come not from the US but from the foreign countries. American auto makers are producing "energy efficient" cars that are barely energy efficient and that have been designed for profits not performance. The so-called energy efficient cars cost $5,000 more than the junk the industry is now selling to us.

I say hell with them. Let them clean up their industry first. And, the first auto industry CEO who says that this country will go down the tubes because of the collapse of their company should be prosecuted on federal charges of corruption and mismanagement and taxpayer abuse. FIRE THEM. And then, and only then, should we give them any money.

Listen to the podcast of my rant on this subject Tuesday and to the calls from callers on my radio show this past Tuesday by visiting But you have not heard the last on this topic!

-- Ray Hanania

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