I don’t know about you, but it seems like this whole $700 billion bailout is spiraling down into a replica of high school student council. We suddenly got injected with a certain budget and everybody is fighting for a piece of that pie.
The football team (banks) is getting the bulk of funds and the science club (car dealers) think it is unfair. With only so much money, it is quite obvious that different areas will get left out. On top of all this, we have essentially a small group of people telling us the “right way” to use this money.
Over the past couple of days, many people are beginning to turn their attention to car dealerships. With the decline in demand and increase of debt, many dealerships are struggling to stay afloat and nobody can find a buyer.
This problem eventually creates a domino effect that ultimately hurts the the major auto companies and those employed by them.
It would seem like injecting money into the banks would help dealers continue their line of credit from banks, yet sometimes it is better to eliminate the middle man and dealerships are not assured to receive money from the banks anyways.
What do you think? Would it be in our favor to bailout the auto industry, or would a top down approch by just feeding the financials be more efficient?