Who can possibly make an argument that the "big three" are anything but the Terri Schiavo of the United States public markets? They have been on life support so long and at such cost as to defy reason, other than the sentimental hand wringing that looks fondly back three decades, or has some religious hangup preventing responsible parties from just pulling the damn plug already. Why not just overfund the pension plans with government money, send all of the workers home and close shop? In the end, it might be cheaper.
We suppose that it merely highlights the miasma that is the domestic automotive industry when the likes of Kirk Kerkorian get sucked into failed billion dollar experiments designed to revive the industry.
Friday will see General Motors open the kimono, likely followed by panicked shrieks of "Shrinkage! Shrinkage! There was shrinkage!" by management. A gentle pat on the back from Mom Pelosi ("There there, you have plenty of growing to do yet.") along with a second handout for $25 billion (oh, wait, sorry, a $25 billion 'bridge loan') would go a long way to reassuring the balding firms for another few months. But the trouble won't stop there.
Last week we were forced to endure the domestic air travel and car rental facilities at several major airports. To our total lack of surprise, SUVs were suddenly the bargain basement rental deal at the counter. A sure sign of inventory dumping. And when even the rental companies can't stomach any more bloated family of twelve transporters? Punt.
Perhaps you will forgive us for snickering at articles that wonder aloud if the firms will even survive long enough to see the savior of all things economic take the oath of office. We don't care who you are. That there's funny. CNBC using 400 words to point out that GM needs cash? Not so much. Where were you when Kirk was dumping his hard earned cashed on the fire?
I think this is our favorite quote, courtsey of Senator Debbie Stabenow (D-MI):
"President-elect Obama understands you can't have an economy that doesn't make things."
Auto Industry to Obama: Save Us Before Even Taking Office [U.S. News And World Report]
GM: Cash Is More Than "King" For Survival [CNBC]
Auto reports hint government help is critical to survival [The Detroit Free Press]