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Oct 29, 2008 -- Detroit automakers seeking federal bailout

The Detroit automakers -- already getting $25 billion from the government -- are now back on Capitol Hill looking for more money. In addition, GM and Chrysler want to merge and shift the responsibility for workers' pensions to us as taxpayers.

This may sound insensitive, but the reality is that workers always pay for the mistakes of management and benefit from their good decisions. Today, the Big 3 have too many factories and too many workers for what the marketplace demands in terms of vehicle production. There are also too many dealerships in the equation.

Clark is opposed to a private bailout for the automakers. By the way, this is 2 party deal with both Democrats and Republicans wanting to look like the good guys bailing out Detroit. But who's looking out for we the taxpayers?

And here's the dirty little secret that many people aren't discussing: Even if the GM/Chrysler merger goes through, there will still be massive layoffs and many dealerships will close.

Unfortunately, Clark won't be able to answer any questions submitted via commenting. If you have a question, please try posting it to our message boards.

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What others are saying

  • auto bailout
    Jim Cramer makes the point that letting these companies fail will actually be a lot MORE expensive for the taxpayers than bailing them out:

    http://www.cnbc.com/id/27681734

    Sorry, but I'm siding with Cramer on this one.
  • Chrysler bailout
    I agree with anna. Why buy that junk. The dealers won't back the the consummer.
  • Chrysler bailout
    Didn't we bailout Chrysler once before. Remember when Lee Iacocca worked for $1 a year and the government bought all those awful K cars? Why are we bailing out these bozos again? They make crappy products. That is why they are failing!
  • AUTO INDUSTRY BAIL OUT
    The U.S. auto makers for years have seen the changing trend of foreign competition and sales declines. They had plenty of time to change their processes and make more cometitive products. With a lot of U.S. manufacturing going off site they still are lagging behind the competition. Will a government buyout change things, I don't think so it will only give away more of the middle class taxes and put additional burden on the tax payers.
  • GM Bail out
    If we are going to use taxpayer money to bail out automotive companies that are going to lay off employees anyway, they should be required to shut down the foreign plants instead of the U.S. ones. We are bailing them out, not Mexico. Our taxpayer money needs to preserve jobs.
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