How long does a company have to operate in the red before it realizes they have to 1) charge more for their product 2) pay their management/employees less 3) sell more product (and not at a loss), and/or 4) operate more efficiently? How can they charge more or sell more product? Make a better product than the competitors.
While everyone in the auto industry is hurting, Ford has it's head above water so far. I didn't buy the cry about how many millions of jobs would be lost if the Big 3 (oh, wait, really just 2 of 3 anyway) went under, due to parts manufacturers, etc.... If there's a market for "x" number of cars to be on the road, regardless of the manufacturer, then there's a market for parts, repair places, etc. It was the same "Save us now or else!" scare tactics that they used to push through the BS bailouts last summer, the auto industry bailouts in Dec., and more recently the so-called Stimulus socialism bill. As soon as they started socializing losses and propping up businesses that should have failed, the markets were thrown into turmoil, and the "too big to fail" businesses realized that they didn't have to act responsibly, because big brother would bail them out.... hm... just as mortgage-holders are doing now... some of whom are being told, "We can't help you right now, but if you default on your payments for 3+ months, then we'll save you."
If your business was not financially viable then, isn't now, or doesn't look to be in the future, why should we prolong the agony? Let the business fail as it should. Does that mean there would cease to be automakers in the U.S.? No! Somebody with some business sense would pick up the pieces and start a new auto company. If there's a market for a product, people will make that product.
We grew up with very little, but very happy with what little we had, and we got into drag racing on a shoestring budget. "Seven bucks worth of sawblades is cheaper than making horsepower, son."
I've continued to play things close to the vest, maintained a great credit score, beenas financially responsible as I can and in just the last year or two, I've gotten out of debt and turned my business into a successful business. I'm finally realizing my dream, and NOW people who have made 2x, 3x or more as much money as me who have squandered their means want ME to pay for their indiscretions?! I don't think so, comrade.
We are rewarding bad behavior.
Rick Santelli nails it.
Watch Glenn Beck, 5pm weekdays on Fox. You are not alone.
/rant