Showdown on Motown bailout

It's being argued by supporters of a federal bailout of the Big Three automakers that they are too big to fail. Okay, no one is using those words--but I did see that phrase bandied about when justifying the federally endorsed rescues of AIG, Lehman Brothers, Washington Mutual...

It's clear--"too big to fail" can be filed under "overused expressions" in your mental Blackberry.

Two Senate GOP leaders denounced the proposed $25 billion bailout proposal sponsored by Sen. Carl Levin (D-MI).

"Just giving them $25 billion doesn't change anything," Sen. Jon Kyl of Arizona, the Senate's second-ranking Republican, said on Fox News Sunday. "It just puts off for six months or so the day of reckoning."

Sen. Richard Shelby of Alabama, the senior Republican on the Senate banking committee, called the plan "a road to nowhere." He called the "Big Three" — Detroit's three major automakers — "a dinosaur," and said on NBC's Meet the Press that they are "not building the right products. … They don't innovate."

Which Democrats support Levin's bill? It's hard to say. Here's what Senate Minority Leader Mitch McConnell says:

The silence from the Democrat rank and file on this matter has been deafening.

Detroit's problems are many, and among them are high labor costs and arcane work rules. But don't look for the United Auto Workers to compromise. Over the weekend, UAW President Gettelfinger says his group will not agree to any more concessions.

I'm sure he's doing what he believes is best for his membership, but Gettelfinger will have fewer dues-paying members no matter what happens. He should try to preserve as many jobs as possible, even if it means wage cuts and slashed benefits.

Technorati tags: detroit automobiles cars economy auto industry business John Kyl Richard Shelby Carl Levin UAW unions michigan McConnell