Nancy Pelosi and Barney Frank sent GM and Chrysler some parental reminders on Friday the 13th, chiding them of their responsibility to protect American jobs in preparation for the plans they are to provide congress on Tuesday. Ceo's Rick Wagoner and Robert Nardelli are going to try to get the cold hard facts on the table. After they explain to Nancy Pelosi something to the effect of "Look, your unions tack on an extra 2k cost to each of our cars above our competitors, your restrictions restrict our ability to build real environmentally efficient cars, and the current economic conditions are sucking our cash dry". Nancy Pelosi or her colleagues might then say something constructive like "How could you let your employees down like this!!!! (rage building), How could you come here asking for more money when you came in a private jet!!!! (getting..harder..to..control..) How could you lay people off!!! (turning..green..rage..no..) There are harvest field mice dying out there!! (incredible..hulk..arrgh!..)" To which GM and Chrysler Ceo's Rick and Robert might reply "Yeah...um...well...we need 5 billion dollars".
The truth of the matter is, we can't keep throwing money at a bad business model. There is a reason private capital is not investing very much right now, because many business models are siphoning cash flow. The government should assist GM and Chrysler in backstopping and declaring chapter 11 bankruptcy. Just as it is nature's duty to burn a Forest when it is overgrown, so should bankruptcy purge the governmental and entitlement business models at GM and Chrysler.
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