Unfortunately, it is time to let some, most, fail. The companies are lining up to literally grease their pockets with tax payer dollars. Today, American Express requested to become a deposit bank in order to qualify for some of that cash. If I say I am a bank, will you give me some extra cash too? I could use it right about now.
Next in line is the "big three". Do we really need to save the auto industry too? What happens if we let them fail? It could actually be a win-win situation to let these companies fail. Throwing money at this industry is not going to solve the problems they are facing. In fact, it will most likely make it worse. If in fact we let them fail, the market will take care of the problem.
The reason that American car manufacturers can no longer be competitive is because they are being dragged down by their unions. Foreign car companies, who also employ a large number of American workers, are not beholden to the unions. They are able to be more competitive and offer better cars at cheaper prices. Every American made car has $1500 built into the price for health care costs to union members. This amount doesn't include the pension plans that the unions have enforced onto these companies.
If these companies are allowed to fail, some will be gone for good, others will reorganize under Chapter 11, and other companies will step up and fill in the voids. If we let them fail, it will send a signal to other companies and other industries. It will force them to find alternative solutions and they will find those solutions.
If we bail out this industry now, next week there will be another dozen lined up with their hands out waving to Congress. Where will it stop? There was news today, that the US' credit rating may be lowered from "AAA." It will cost us more to borrow from other countries. Our debt will continue to rise and we will find ourselves in a weakened state of affairs. I don't mean financially.
Unfortunately, they won't be allowed to fail. The Democrats have too many favors to pay back to the unions.