More Trouble in Detroit


White House is considering orderly bankruptcy of auto firms.

Just last week during the Senate’s attempt to craft a domestic auto bailout (a negotiation that that UAW President Ron Gettelfinger didn’t bother to attend), taxpayers witnessed the real UAW at work in the open. Asked to shoulder some part of a federal tax payer financed bailout, the UAW essentially said “we’ll let ya’ know later on that” and then placed its bet on a Bush Administration promise of help with a healthy side bet on an Obama/Pelosi/Reid trifecta.

Well, to mangle the metaphors, the price of poker is going up.

Chrysler is idling all assembly lines until late January and Ford has just announced that it is adding yet another week to its seasonal shut down. An expected swift solution from the TARP legislation has yet to materialize (one wonders if Frank and Paulson are butting heads again?).

In a quickly unfolding story with many political angles there is a surprising lack of disquiet in the legacy media, as if they have silently folded another hand. The high stakes poker between auto manufacturers and organized labor can barely find front page coverage today. Perhaps the sermonizing on behalf of organized labor has finally met
cold economic reality
as manufacturers further expand operations south of the border and foreign owned manufacturers show no reluctance to make necessary cuts.

"Once You Go Black ..."
ZIRP v. Tax Rate Reductions