Throwing good money after bad

Frank predicts second auto bailout in March

Rep. Barney Frank said Monday that the incoming Obama administration will likely explore a second, long-term bailout of automakers next March while saying an agreement on the first is nearly complete.

Let’s cut to the chase: This is a huge waste of money at taxpayer’s expense.

Let the Big 3 go into Chapter 11. This is not a new idea: it was proposed in 2005.

Here‘s a Chapter 11-bailout proposal, and one from last month, via Below the Beltway, which correctly forsees it as “most likely a projection of what we’ll see play out in 2009 and beyond.”

UPDATE
Pelosi on the auto bailout: No worries, it won’t be an endless flow of money
Here’s the video, where Nancy talks crap about the barbershop. Translation: the taxpayer’s getting fleeced no matter what. The rest of it is senseless piffle.

It gets worse:
Brian:

you won’t believe the name that some Democrats are kicking around for a Cabinet-level position of “car czar”; in the Obama administration: UAW President Ron Gettelfinger. If Gettelfinger ultimately gets the job, most Americans won’t see Detroit build a car that they’d want to buy for the rest of their lives.

Friggin unbelievable.

UPDATE, Tuesday 9 November
What fantasy world does Nancy Pelosi inhabit?

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While on the subject of government intervention and “stimulus”, TigerHawk has a new video,

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8 Responses to “Throwing good money after bad”

  1. Nora Says:

    It’s bad, really bad because they are spending money to reward the same people who have been the real cause of the crisis.
    It’s the same here: they are going to give 5,000 million euros for the banking sector (while they have been having spectacular results, they haven’t given more to the country…, so they shouldn’t be helped now). AND 8,000 million euros for the city councils to grow public expenditure. In the latter case, there are another reasons: there are some of them who are not able to pay the workers, so how on earth are they going to spend more on buses, tubes, city decoration and so on?

  2. Instapundit » Blog Archive » PROFESSOR BAINBRIDGE: Why the emerging auto bailout sucks. UPDATE: Fausta Wertz: Throwing good … Says:

    [...] UPDATE: Fausta Wertz: Throwing good money after bad. [...]

  3. Fix Or Repair Daily Says:

    If this sort of thing worked, the Soviet Union would still be in business.

  4. Pat Patterson Says:

    I was thinking just the opposite, though whether any cars actually might be built is a concern, because a walk through any parking lot of the Big Three would indicate that the workers like V8′s in any kind of car or truck. No econoboxes or 3 cylinder diesels either. Hallelujah!

  5. Michael Says:

    I actually have two Fords, but if this passes, I’d seriously consider dumping them both and buying Japanese just on principle.

  6. Steve W from Ford Says:

    Normally I’d agree that Gettelfinger is like someone Mel Brooks would pick to play the car czar if this was all a big movie but actually He could be a brilliant choice. He certainly knows the car business from the bottom up and I think that by now even the Hotentots realize , much less the autoworkers, that the party is good and finally over and REAL change needs to happen if their jobs are to survive. Even Obama will not be able to keep shoveling them money if they don’t get their poop in a group this time and make cars affordably that people actually WANT to buy.
    Gettelfinger could be just the guy who might be able to motivate a blue dog dem- mid west urban- coalition to beat back the enviros from THEIR paticular brand of insanity that the old school boys know will kill the goose once and for all.

    Or not. Maybe they are all so terminally brain-dead that they’ll blithely run the bus off the cliff. Fun to watch- too bad the tickets are so expensive.

  7. All Mi T Says:

    I agree. I think that all the capitol hill folk need to consider some OTHER ways to grow and stimulate our economy

  8. Scott Says:

    TigerHawk,

    What you are also missing about “government work projects” is that we don’t have 30% unemployment today so that there is a large number of unemployed workers that could be hired even if there were “shovel ready” projects. Which means that when they try to fix this by running public projects they will simply pull people from “real” jobs and this will not only reduce the affect on the economy, those people who were employed and moved to a public project (presumably to make more money) will not be able to return to their previous “real” job once the make-work job is done.

    The better plan would be to cut taxes to the small and medium businesses, which employ the most people, so that they will grow and employ more people and put much more money into the economy and as a side-effect of stimulating the economy tax revenues will also rise.