Sunday, November 09, 2008

before you bail out detroit, ask yourself...

The question when it comes to whether or not the taxpayer should bail out General Motors, Ford, and Chrysler: will an infusion of cash now be repaid later, both in cash and in terms of keeping these companies as viable competitors in the automobile industry?

If yes (which was in retrospect the case for Chrysler in 1979), then a bailout might be worth it. If no, then don't throw good money after bad.

Problem is, the answer is probably "maybe"...



Post a Comment

<< Home