It wouldn't be an endless cycle, though it would be tough and possibly tragic. Once the free market righted itself and stabilized, things would be manageable again. Granted it won't be like the hey days of the late 90's and early 2000s but these things are cyclical -- soon enough there will be the next market rush and in a few decades the whole thing starts all over again.It would be unfortunate that thousands of people would be out of work. Unfortunately, it will a cause a ripple effect with their suppliers not being paid and ultimately these people would also lose their jobs. It's an endless cycle.
But if they file and reorganize, what would your father lose out on? Ok, maybe on the short term someone like your father may stand to lose some of the profit sharing plan + pension value. If he has worked for Ford for 30 years though, certainly he will get a retiirement with dignity. But, for the long term, wouldn't a restructuring of the organization be good for the company's survival? I'm afraid that bailout does nothing to ultimate save a bad business model from failing. The tax payer (you and I) being the guaranteer of the bond to your dad's company will lose out if the model is not fixed. I myself am personally suffering some economic hardships as a result of this financial crisis and I don't see how after throwing 700 billion to the banks (which is of questionable merit), bailing out Ford, GM, and Chrysler will help anything. Let them reorganize I say.I'm very much in favor of the bailout. I'll admit I'm biased, my dad worked for Ford for 30 years and I don't want to see him lose him pension or his insurance nor do I want to see anyone there lose anything.
If the market won't sustain everyone keeping everything, how will it ever logically or feasibly be sustained? Anecdotal personal feelings aside (and I am 100% in the same boat as you are, re: family members who will be directly affected) it doesn't make sense to keep pouring money into a losing proposition -- and right now the big 3 Auto makers are a losing proposition (and have been for a few years now).I'm very much in favor of the bailout. I'll admit I'm biased, my dad worked for Ford for 30 years and I don't want to see him lose him pension or his insurance nor do I want to see anyone there lose anything.
I think this is probably true in isolation, but I'm not sure if that's the wisest course right now in the current situation. We're on the edge of a huge recession, unemployment is high, and the credit market is crippled. Somebody needs to take a step back and figure out how a big 3 bankruptcy works into a much bigger picture.In short, letting the US makers fail would be good for the economy, not bad. This would be the case whether they close their doors completely or emerge from bankruptcy as one or more companies who can succeed in making cars that will sell. Either way, consumer wants will be better satisfied and everyone will be wealthier as a result.
What's interesting to me is that ~50% of the country seems to think that the big 3 shouldn't get a bailout and just fail. If I was CEO of one of these companies this would frighten me more than not getting any money. Is their image (e.g. image of the US automakers) that bad?