The Broken Clock Syndrome (II) - In our view, Dec. 21: A Bad Bailout

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As I mentioned here, here and here, the bailout was and is a bad idea generally, and the UAW bailout a terrible idea specifically. This massive fraud perpetrated on the taxpayers re-enforces a moronic business model while keeping the mortal enemies of this country alive.

Economically and politically, it's the equivalent of sending troops to KEEP Saddam in power while sending cash to the al Qaida.

Unions generally and the UAW specifically, as shown by their whining and sniveling about Bush's nonsensical "goals as opposed to requirements" statement that they would maybe want to become wage-competitive in an effort to keep their jobs; are a carbuncle on the butt of American capitalism.

That said, on those infrequent occasions when the phantom editorialist at the Columbian falls and hits their collective head, thereby showing something approaching common sense (In the midst of their lying, bogus "The people support a 3rd bridge and loot rail system" articles) they again illustrate the Broken Clock Syndrome by nailing President Bush for his violation of free-market principles, if nothing else.

In our view, Dec. 21: A Bad Bailout
GM, Chrysler get a big boost from Bush, but the plan is packed with potential for failure

Sunday, December 21 1:00 a.m.

Now Americans understand why the Big Three automakers — though desperate when appearing before Congress last month — were not more yielding in those discussions. They knew that President Bush likely would come to their rescue. That’s what happened on Friday when Bush presented $17.4 billion in rescue loans to General Motors and Chrysler. (Ford doesn’t need emergency assistance … yet.)

Although this plan offers hope for survival of domestic automakers, there remain numerous areas of skepticism that should cause Americans great concern:

One of the conditions this relief plan forces upon GM and Chrysler is mystifying, if not absurd. Here’s how The Associated Press explains it: “If the carmakers fail to prove viability by March 31, they will be required to repay the loans, which they would find all but impossible. A firm will be deemed viable only if it can show positive cash flow and can fully repay the government loans.

”Say what? Imagine your bank threatening you with this laughable scenario: “If you can’t come up with any money, we’ll force you to pay back this loan!” Only in this case, it’s billions of public dollars.

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