Short Term Loans Could Help the Crumbling Auto Industry

Should the government bail out the auto industry?

In the middle of talk about government loans, the question may be whether short term loans would be a better solution to the crippling effects the current economic downturn is having on the automobile industry.

The President of the United States has requested the resignation of the current CEO of General Motors as part of some management changes that are part of the government's recovery plan for the auto industry. Whether this is because of suspicion of mismanagement or just a way to cut costs will probably not be known for months, if at all. However, there is no doubt something must be done quickly to save the auto industry from bankruptcy.

Short and long-term effects of a declining auto industry

When you look at the short-term picture in regards to the auto industry, it may not appear very bleak. So what if Chrysler and General Motors shut down—that still leaves Ford and the import market. However, it isn't as easy as that because the demand for cars will remain the same leaving the remainder of auto manufacturers to pick up all of the slack from the demise of two giants.

The world today relies on motor vehicles and the loss of two of the largest manufacturers would cause a more severe economic downturn than we are now suffering. Without the auto industry, raw goods would not be able to reach their destinations which in turn would push us back a couple centuries. Certainly that seems like a healthier choice but it is not one the country could endure quickly. ... click here to read the rest of the article titled "Short Term Loans Could Help the Crumbling Auto Industry"