We Are All Auto Experts

I know my prescription for the ailing American auto industry is correct. So thought Daimler, followed by Cerberus Capital Management and currently Fiat. Fortunately, I don't run, nor will I run an auto maker. Daimler and Cerberus used there own money - I am good with that.

Unfortunately Congress gets to play with other people's money - your money. It seems they think they know which dealers are economically viable better than management or the accountants. Not it looks like they are going to try a new endeavour - running an auto maker.

More than 3,100 General Motors and Chrysler dealers could be in line for a new lease on life as a House bill to overturn dealer closing passed a House committee vote last night. The bill, part of larger spending bill, will move to the House floor next Wednesday.

Read more here.

Anyone who believed that a government run auto maker was going to be free to pursue economic rather than political choices was starkly wrong. These are the unintended consequences of bailouts. I expect that before the end of the next recession GM or Chrysler(Fiat) will be back to losing money on a massive scale. Again the taxpayer will be expected to be riding to the rescue (again). Can we get off this merry-go-round?