Government Should Prevent a GM-Chrysler Merger

Don't let the current governments intervention in the banking and mortgage crisis let other companies join in anti-free enterprise activities. A GM-Chrysler merger would leave us with only two major auto makers, don't trust such a "trust" ! Let all three auto makers fall, LNR supported massive government intervention in the financial meltdown because it was a question of national security and macro-economic stability. The big three of Detroit are no longer a relevant factor in America's economy and are themselves to blame for their failures. In the fat bountiful years, the billions they earned during the real estate boom- they failed to squirrel money away for a rainy day. Just as the airlines industry, the auto industry typically goes through booms and busts, and rarely save and stash away money during the booms- to survive the busts. This bust is different because the troubled banks won't lend the billions to tide the auto makers over until the next boom. The big three also failed to make cars that people wanted, obviously people prefer the imports from Japan and Korea.

The last time the government assisted the auto industry, in a big way, was offering loan guarantees for Chrysler in 1980 (contrary to popular belief- the government did NOT give Chrysler one billion dollars (1 billion) but only extended loan guarantees (amounting to $1.5 billion) so that Chrysler could borrow the money. Chrysler recovered and paid back the loan early. However, that was a different time, American cars were still dominant, over 76% of sales in 1980 were American built cars, the auto industry work force represented a larger portion of the unions and workforce than today. It was a decision in a different time. Today, we don't need them. Their products are over priced and under quality. The American auto industry is also guilty of sheer disdain of its consumers by not developing alternate energy vehicles long ago, leaving Americans with NO choice except to buy gas guzzling cars and subjecting Americans to the vulnerability of Arab oil. Let them fall. Vehicle demand will either be picked up by a new company that buys them out or we rely on imports- which offer better for less. The loss in direct and indirect jobs (auto suppliers) will be a much smaller price to pay, than the billions the consumer will loose to a trust of GM-Chrysler overpricing and robbing the consumer over the next few years.

Let'em fall !