When an American taxpayer borrows a large sum of money, the lender typically obtains commensurate collateral to secure the loan. What have the big three automakers offered as collateral?
Before they are given a single dollar, each one of the principals of each of the auto companies should be required not only to put up their respective auto businesses and all business assets as collateral, but also all their private homes, cars and all other personal assets. This will motivate them to rethink how much money they actually need and will encourage them to properly manage it.
Unless these loans are secured — to the degree that it will be personally painful for them if not repaid in a timely manner — this bailout will be nothing more than a prescription for trouble that will leave the American public strapped with yet another massive debt.