Detroit

I think the thing that may be most troubling this economy is that even us arm-chair amateur pundits don't believe we know the answers--and certainly, the people in charge, and the people-in-charge-in-waiting, all also seem to be shrugging their shoulders and looking around.

Detroit? How can we bail them out?

Then again, how can we not?

Who knows?

In the end, though, if I was the person who had to make the choice, I think I would want management and the Unions to sit in a room and come out with a pre-packaged bankruptcy plan.

Let them come out with internal controls on executive compensation and restructure the pension plans and health benefits so that the cars can be made affordably. Balance the hurt among the suits, the workers, the retirees, the bond holders and the stockholders. If we have to toss in a few billion to fill the gaps, I would reluctantly do it--probably would save on the additional employment and health costs the government would wind up paying anyway.

But a straight bailout? I'm sorry, but that's pouring water onto sand.

Is it unfair that some guy retired at 50 and now can't look forward to 15 years of premium health insurance? Yeah. But remember, anyone who worked in Detroit in the last 40 years or so--anyone, at any level, participated in this collapse by making crappy cars.

The alternatives to bankruptcy, or the voluntary restructuring of the costs and debts, are either the loss of tens of thousands of jobs or the further piling on of debt for us, our children, grandchildren, etc.--and a further bailout when this horribly run industry comes begging again in a few years.

As Frank Borman said-- Capitalism without bankruptcy is like Christianity without hell. Neither works in the long run.

Detroit's problems were not caused by an unforeseen crisis; there was no 9/11 like event. Detroit's problems stem from the fact that for at least 40 years they have made bad cars.

Really, really bad cars.

And while the Great Bailout America Tour continues to roll on, it should nevertheless take a pass on these open hands. If for no other reason than the people who are asking for the money, the people upon whose judgment we are being asked to trust to wisely invest this money, these pompous morons, each took their own private jet from Detroit to DC. (And, by the way, how come none of the Union leaders were sitting with the CEOs?)

So bailout Detroit. Absolutely not.

I think.

Probably.