Hunting Dogs

As one of my relatives used to say "That dog don't hunt" - Yesterday's congressional appearance by the (not so) Big 3 CEOs was a remarkable demonstration of a number of things. First, it demonstrated that the automakers and their UAW colleagues don't get it. Their coming in private jets to ask for a bailout seemed to be a wonderful contrast. At the same time the comments of people like Jim DeMint were telling - the South Carolina Senator disputed the claim by the automakers that the American auto industry is in the dumper - he pointed out that companies like Honda and Toyota were actually in pretty good shape. The problem is with the current labor agreements with the Big 3.

There are some pretty clear indications that the (formerly) Big 3 (GMs book value in inflation adjusted dollars is actually less than it was in 1929) are part of a worldwide over capacity. Why should we as taxpayers "invest" in that? It suggests a wider problem of how and what government can do to improve the current problems in the credit markets. This may be a real test for us in the coming six months.