After receiving $17 billion dollars in "bailout" funds, Chrysler and GM are asking for another $39 billion. This surprises no one who read the reports of the "bailout" and the UAW refusal to modify its contracts with the companies.
Without major changes to the companies' cost structure, any "bailout" funds must properly be considered to be subsidies. Only continuing subsidies will allow the companies to continue to operate. This clearly indicates that the companies face a problem of insolvency rather than a temporary liquidity issue under their present labor contracts.
Only by borrowing ever more funds from abroad to finance the UAW gold plated retirement packages can the Obama administration protect its labor allies from facing economic reality. So long as the American taxpayer allows the Democrats to pass "bailouts" for the Big Three, they will continue with business as usual.
Clearly, only the discipline of bankruptcy will force Chrysler, GM and the UAW to find an economically realistic agreement that will allow the companies to compete without ongoing subsidies.
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