Big 3 Parasites

Friday, December 5th, 2008 1:50 am by Neal

“Those who do not remember the past are doomed to repeat it”.
— George Santayana

Henry Payne, writing at Planet Gore, has dug up a Time magazine article from 1979 on the Chrysler bailout. Read this and ask yourself if it sounds familiar.

After weeks of rising pressure for a federal fix for the multiplying problems of Chrysler Corp., (the Carter Administration) produced a Government bailout. It was designed to prevent the nation’s No. 3 automaker from sliding into a bankruptcy that could have put many thousands out of work and sent a shudder through U.S. financial markets. (Treasury Secretary William Miller) recommended Government loan guarantees that will have to be approved by Congress.

The company specializes in making larger cars, vans and recreational vehicles. Since the gas crisis started, sales of these relics have, in (CEO Lee) lacocca’s words, “been dropping like a rock.”

The roots of this crisis are old and deep. . . . Chrysler entered the 1970s lacking the financial resources to weather three recessions, two oil crises and an enormous wave of environment, safety and fuel-economy regulations.

In 1975, the public was demanding smaller, more fuel-efficient cars, but Chrysler lacked the money to retool and redesign quickly. . . . Now Chrysler appears to have one hope: to stay solvent in any way possible until lacocca can bring forth the cars to save the company. He will need help — and not just from Washington. Said UAW President Douglas Fraser: “We’ll take into consideration whatever is needed for the survival of Chrysler Corp.”

As for other sacrifices . . . top managers could well announce token salary cuts and the sale of the company’s three corporate jets.

Let’s throw another $100 billion at them so that the UAW ticks can suck our blood for another decade or so.

Who is John Galt?

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