A $25 Billion Bridge to Somewhere

While "let's party" AIG and trash-loan banks wallow in a promised $700 billion of bailout taxbucks, there is a big debate in D.C. on whether or not to use $25 billion of that bailout to rescue the manufacturing backbone of our country, the auto industry's Big 3.

As Jeffrey D. Sachs explains in "A Bridge for the Carmakers - The Future Is in Sight. They Just Need Help Getting There" (WaPo) "We face an unprecedented financial calamity, energy crisis and environmental threat. A vibrant, growing U.S. automobile industry should play an essential role in solving all three. The technologies that will win the day are in sight; industry has already made important advances. A partnership with government is vital and should begin this week."

And not only that.... if Washington doesn't take action, the second big "D" could be the legacy of George W. Hoover. Sachs warns "...the sudden closure of an automaker would be catastrophic, possibly pushing our economy from recession to depression. Because of the impact on parts suppliers, the shutdown of one company would imperil domestic production across the board, and the jobs at risk include not only the 1 million in vehicle assembly and parts but millions more that would be caught in the resulting cascade of failures. The industrial Midwest -- especially Michigan, Ohio, Indiana, Illinois and Tennessee -- would be devastated, and the shock waves would reverberate across the world."

This isn't the time for faux-conservative ideology or petulant pay-back for the auto industry's past myopic performance.... this is the time for bold action. This week could be the start.... or the end.... of the rest of our financial lives.