The Senate just killed the auto bailout. Did they just kill GM, Chrysler and Ford too?

Maybe, though I think the big three is eventually going to be bailed out when Obama takes office. Side note: is it… the big three is going to suck it? or… the big three are going to suck it? answer: it should be IS because the “big three” is a collective noun which needs a singular verb (@ least on the GMAT).

I don’t think there should be a bailout for the big three. There’s probably a domino effect of badness that will happen if the big three fail. We’ll end up paying for it one way or another, but by giving those who screw up billions of dollars doesn’t make sense to me. They produce really shitty cars and are handicapped by the UAW. The only way for them to get better is to fail and to fail miserably. They’ll need to correct the errors in their ways when it comes to build quality, and to a limited extent, it’s starting to happen. I think the Ford Malibu beat the Camry in initial build quality on some top ten list. There’s a long way to go, 20 something years long, for Detroit quality to be on par with Nipon quality. By going into bankruptcy, the big three can rework labor contracts so that  they can compete effectively with foreign automakers (supposedly).

If I had to bet, and it’s a real obvious bet, there’s going to be blood when the market opens. Part of me wants to go out on a limb and say it’s not going to be that bad, perhaps some of the bad news is already priced in? Probably not. Either way, I’m not game enough to put money out there yet. Maybe if it’s real bad, I’ll look into MCD. I love MCD. They’re not doing anything but being stable and making good coffee (albeit expensive as I’ve come to realize).