More On The Detroit Bailout(s)

The Senate is now debating a new $25 Billion bailout for Detroit. No, not the old $25 Billion that was already approved, but hasn't been implemented yet, a new $25 Billion. The only upside is that this bailout would have a provision for the government to benefit if Detroit makes some sort of miraculous recovery. However, this issue has always been that it is likely that the money will never be recovered due to bankruptcy. Detroit is so horribly run, the real surprise is that they are still in business at all.

However, with Mr. Obama deeply indebted to the unions for his victory, this may well be only the first of many bailouts for Detroit. The Big 3 are in such bad shape that each $25 Billion will buy them less than a year. That would mean another $50 Billion at least during the first Obama administration.