Why give the big three the money when we can be creative and make a smarter decision? Why don’t we Drop the argument between capitalism and socialism and work on our nationalism? Ideology should take a back seat to survival. And this is time for survival. Here is how:
1/ Congress deposits $10 billion dollars in US Banks and obtains preferred stocks at 5-6% annual yield.
2/ Banks then can lend $100 billion to automakers at a leverage rate of 10 to 1 that they are allowed.
3/ Automakers then can purchase, with Government help and supervision, one of the successful automaker companies in the world, such as: Toyota motors, Nissan, or even Volkswagen. Since prices of almost all such companies have dropped drastically and most are almost in the same desperate need of government intervention themselves, it is an opportunity we cannot miss. The United States being the only country that can afford such a bold move, I think it makes perfect sense to buy one or two of these companies. Isn’t Capitalism best defined by taking advantage of a situation and turning it into a more profitable, lucrative venture?
4/ If and when such purchase becomes successful, the CEO of the acquired successful company becomes the CEO of the new company, the existing CEO’s to be demoted or laid off.
5/ The UAW contracts to be renegotiated, and instead of offering them the benefits that were agreed upon, which are costing these automakers $1500-$2000 per car. We offer a percentage of ownership in the new company to those members, who are eligible for those benefits, with a guaranteed rate of return of 7% per year.
This, in my opinion, will preserve our Capitalism, approximately 3 million jobs, our industrial base, our national pride, and the taxpayer’s money.
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