I have posted about the oversupply of cars in the US and only Phil has addressed that issue.

I think that issue is at the root of this problem. There are over 250 million registered cars in 2006 in the US and a few more since then. There are millions of brand new cars on dealership lots that are not registered plus a lot of used cars ready to be sold that are not registered. There are way too many damn cars in the US.

Even if the Big 3 are bailed out, production at all 3 companies has to be cut by 40-50% (and that's a conservative estimate). Thus plants still have to be closed, workers still have to be laid off.

So why not let Chrysler and GM fail? Chrysler is bankrupt already... only way it can survive is if GM buys them. GM's failed planning over the past 20 years has brought them where they are today.

With those 2 companies out of the way, demand for Ford cars will increase as well as demand for other vehicles. Toyota and Honda and VW will produce more cars in US because there will be more demand.

I work for a big financial company and I too read the news and know that my job is not secure. While Wells Fargo and Citi have cut thousands of jobs I know it's only a matter of time before Bank of America (my employer) will cut jobs. It's the reality of things and we have to face it.

A gem cannot be polished without friction, nor a man perfected without trials. ~Chinese Proverb

The early bird gets the worm, but the second mouse gets the cheese. ~Jon Hammond