Or You Could Just Not Do Anything.......!

It looks like the Senate has reach a tentative decision in whether or not the Federal Government should give the struggling auto makers a bridge loan. Not a bail out. Not a gift. A bridge loan to help the big 3 survive for another couple of months. There will be conditions that must be met for the auto companies to get their cash. They will come under great scrutiny, deserved or not.

Living in the Detroit area, I have a great interest in this latest round of "begging for survival" money. The majority of people in the Greater Detroit Metro area are involved with car companies one way or another. If they don't work for the Big 3 directly, they might work for a supporting company that supplies parts or other services. And even if they don't work somehow in the car industry, all businesses are affected. Restaurants, retail stores, theaters...all are hit hard because the slump in the auto business.

Now there is a lot of blame for this economic slump. I'm sure the execs at the car companies could have done a better job. Was it all their fault? Certainly not. However, I agree with the Senate that the Big 3 must do business a different way than they did in the past. Ford, GM and Chrysler must prepare for the future and retool. They must have products that are fuel efficient and are wanted by consumers.

I just love how the Senators act so high and mighty about this. I didn't remember the investment groups having to go through this when they got their bailout. I like what Jay Leno said concerning the Senate auto hearings: "You've got guys owing trillions yelling at guys owing billions!". The Senators are the last ones that should be criticizing anyone for bad management decisions and budgeting issues.

The Senators also will want a Car Czar to oversee that the car companies will change their approach to business once they are granted this special gift. This ruling person will decide that if the Big 3 do not tow the line, The Car Czar (I love saying that by the way!) can pull funding and make the car companies file for bankruptcy.

Pretty important position, eh? Does it make you feel good that this person will be appointed by President Bush? How great is that? We can always count on the Prez to do the right thing.

I hope the Feds have taken notes on these procedures involving the financing of the auto industry. I hope they have written down what to do and what not to do. What works and what doesn't work.

Because you and I know, they are going to go through this again with yet another industry that needs a hand. Tourism, retail, trucking, farming....take a guess.

Because when someone is handing out money, the line gets real long fast.

If you have any comments on this article, I would love to hear what you have to say!
Feel free to comment below.

Thanks for reading!

Dan Tenchall
Great Lakes Mortgage Funding

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