As a novice blogger I have been repeatedly surprised and humbled by the thoughtful comments posted on this blog. I want to thank all of you who are contributing to a civil and thoughtful discussion.
At the risk of offending some of you, I am going to push back on some of the comments to yesterday’s Chrysler post, in the way that I would have done so had you been advisors to President Bush and I been in my old job at the White House National Economic Council. I’m putting my “honest broker” hat on, and I want to stress that this pushback is independent of my own policy views.
In yesterday’s post I listed five options. Option A was to withhold all additional taxpayer funds. This is the pure free market option, and also the most popular option among the commenters. I asked you to assume that choosing Option A would mean a 99% chance that Chrysler would liquidate by July 1st, and an additional 10-20% chance that GM would liquidate.
The first two commenters seem to have internalized that and be willing to bear these costs. FogCity wrote “Liquidation of Chrysler sets the stage for renegotiations with the UAW