No Business is "Too Big to Fail". The Auto Industry Should NOT Be Bailed out.

The Titanic was not too Big to Sink. No Business can become "Too Big To Fail".

The Government has taken stakes in Banks and Insurance Companies using the Federal Balance Sheet to supply Private Interests with Capital and Liquidity. The Government is now getting called on from everyone for a "Bailout".

Now the Automotive Industry wants to be bailed out. How much tax payer money should we risk? And how safe is this Money? Who really knows? General Motors, Ford and Chrysler all want to be next in line to receive a government Bail Out.

A Bail out may be justified in dire circumstances to prevent a systemic global financial collapse by providing emergency relief and intervention to markets, but not in the case of supporting an obsolete industry such as the automotive business.

Back 50 years ago it was very hard to break into the car business. That is not the case any more. Technology and telecommunications has enabled manufactures to survey suppliers around the globe to find the best value on components. It is relatively easy to outsource the manufacture and production of vehicles. I could start my own car company for a sum of money significantly less than 10,20,30,40,or 50 years ago. Every year the process is likely becoming cheaper and cheaper. There are now literally thousands of car manufactures competing for your business all across the globe.

This is Good News for consumers who are ultimately going to get more value per every dollar they spend. And it is Bad News for companies in the business, more competition puts pressure on Margins. The car business is no longer a high margin specialty business. Technology and increased access to "turn key" design, fabrication, and production processes has changed the playing field.

In our New Global Economy it does not make any sense to subsidize and put on Life support business models of companies that are doomed to fail.

If the car companies wanted federal money they should need to do something that benefits all the members of our society such as electric cars, hybrids, solar, compressed natural gas, improved fuel economy, ect. They money should not be put into failing enterprises. The problem with the car companies is rooted in a failed business model. The last thing it needs is more money.

Money should be allocated to research, and development for companies that can create new industries, products, and sustainable jobs. Money should not be put into failing businesses and business models just for the sake of sustaining a business that is not profitable, and cannot be profitable at any time in the future without government support.