Nationalize Detroit, Too

The bailout isn't enough and won't work.

Posted:
 
tbmdetroit

Every day, it seems, financial markets whiplash themselves over nationalization. Obviously, the jury is still out on whether nationalization is the inevitable fate of too-big-to-fail institutions such as Citigroup and Bank of America, already underway via the vast ongoing federal prop-up of AIG, or such a horrific notion that even the French wouldn't try it again.

Will we or won't we? Regardless, it seems that a key sticking point revolves around management: The current roster of financial executives hasn't exactly distinguished itself, but whom would the government choose to replace them? Chances are, the Beltway designates would find themselves quickly racked on an angry sea of crisis.

Fortunately, we don't have to grapple with this question when it comes to the U.S. car business. The executives of General Motors and Chrysler, the two Big Three automakers that have thus far taken bailout money, are abysmal and will almost certainly not survive the year (although I underestimate GM's Teflon-coated Rick Wagoner at my own risk). At Ford, Alan Mulally has managed to dodge the acetylene ire that has been focused on his brethren, but given FoMoCo's precarious situation of looming debt crisis, he's really just the leper with the most fingers.

Comments
The Root encourages respectful debate and dialogue in our commenting community. To improve the commenting experience for all our readers we will be experimenting with some new formats over the next few weeks. During this transition period the comments section will be unavailable to users.

We apologize for any inconvenience and appreciate your continued support of The Root.

While we are experimenting, please feel free to leave feedback below about your past experiences commenting at The Root.
Must-See Family Attractions
July 29 2014 2:13 PM