One of my relatives is fond of quoting a lazy person who he once heard say, in response to a request to do something, "what's my benefit". Even though I think we should all do things out of both self-interest and the interests of those around us, when it comes to bailouts that we're all financing out of future tax receipts, we should ask the same question: "what's our benefit". Over on Metal Miner, Lisa recently penned a post quoting some recent blog entries from author extraordinaire Doug Smock about his views on the Detroit bail out. Lisa writes that in one of Doug's posts, he "argues that the steel industry came out of its misery by reinventing themselves as more customer centric and innovative, as Nucor showed the world with their scrap mini-mill concept. Prospects are dimming for a Big 3 bailout as team Pelosi and Reid realize there are not enough votes to over-ride a certain Presidential veto. Bush may be a lame duck but at least he's willing to ignore the quacking."
In my view, we should let Detroit fail. Sure, we'll lose some jobs in the process, but Honda, Toyota, BMW, VW and possibly newly financed and better-managed ventures will step in and start buying up facilities and plants. And most certainly, some form of GM and Ford will emerge from bankruptcy with new leaders, better labor contracts and a product development pipeline in line with the environmental desires of our President-elect (which, you might be surprised, I support in this area). So as Lisa says echoing Doug's views, let's resist the "quacking" from comrade Pelosi. We'll all be the better for it just a few years from now if we do. Yes, "there will be pain," to quote Mr. T (and a currency hedge fund manager friend of mine who recently quoted our mohawked avenger in his newsletter ). But long-term, we'll all be the better for it.
- Jason Busch