Tag Archives: Automakers

Why we have to limit their size

The main lesson of [the bailouts] is that society cannot permit the existence of private institutions that are too large to fail. And that’s not only because they might eventually fail and then we are on the hook for their liabilities. It’s also because the lesson of the bailouts — both the auto and banking […]

Things you might not have noticed

The possibility of a $700 billion bailout for Wall Street is looming large over the national conversation, so I’ll forgive you for not noticing these fun nuggets portending America’s doom: Congress is working on passing a $25 billion bailout for Detroit automakers And why $25 billion for companies that have long ago ceased to be […]

US automakers deserve to fail

General Motors, the American car manufacturing giant, recently announced a second quarter loss of $15.5 billion. Sales of cars and light trucks dropped 29% at Chrysler (Dodge), 26% at GM, 15% at Ford. I guess folks aren’t too keen on buying gas guzzling monstrosities when gas prices are rising rapidly. This is bad news for […]