Auto Bridge Loan to Nowhere

In listening to some congressional idiot talk about aid to the auto makers, I was struck by their determination in insisting that this is not a bailout but a bridge loan.  There is a grain of truth in this I suppose.  When the commercial paper markets seized up, financing oprerations would have become very difficult for GM, Chrysler and Ford; like it did for every other large business in America.

So if we are going to provide a “bridge loan” to one or more of the Big 3, then why would we not provide taxpayer underwritten “bridge loans” for every single other business in the country that can reasonably claim that financial and consumer market conditions are making business difficult?

A bridge loan is usually a facility that a business aquires in the course of a major transaction that is used until some other more permanent form of financing supplants it.  What is the financing that is going to supplant the assistance being requested in this case?  These are broken businesses.  There is nothing on the other side.  These are Bridge Loans to Nowhere.

The unstated reason that Congress is going to great lengths to provide taxpayer dollars to unbelievably poorly run private businesses is that if these businesses fail, the UAW and other auto workers unions will lose their union contracts.  So this is really a UAW bailout package.  Make no mistake, there would still be a great deal of employment.  Someone would use the assets of the automakers to make cars in America.  So when you hear gasps at the 3 million jobs that would be lost if we do nothing, that is a misdirection.

Count on Congress to do the wrong thing in this as in nearly every other thing they do.

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