Chrysler bailout and financials bailout — alternative history

Both should have been let die

That bold-red thesis comes from Barry Ritholtz in his pending book, “Bailout Nation,” now available for Amazon pre-order.

Ritholtz argues that if the Carter Administration had let Chrysler cave, somebody would have bought it, restructured it, and refocused its carmaking market away from Ford and GM, and continued to do so even when oil prices collapsed after the end of the second embargo. He says Ford and GM might have paid heed, even more so if nobody bought Chrysler at the brink.

“If Chrysler goes belly up, it also might have forced some deep introspection at Ford and G.M. and might have changed their attitude toward fuel efficiency and manufacturing quality.”

Leonhardt notes this is all good to ponder as the formerly-Big Three take collective hats in hand to the Capitol for beg for $50 billion.

Unfortunately, BOTH Schmuck Talk Express™ and Just.Another. Politician.™ are on record as favoring passing out Halloween candy.