One problem with the "bailout for retooling" idea is that the American consumer is a spoiled and fickle creature. Once this recession is over, and good times are here again, the American public will be screaming for giant SUV's, Hummers and big luxury cars again. It has happened time and again.
Supply and demand is a natural law that cannot be changed with bailout money or legislation. If the demand is there, the supply will follow - a basic principal of capitalism. If the American people start demanding foreign cars on a long-term basis, all the bailouts in the world won't save an industry for which there is no demand.
"We give dogs the time we can spare, the space we can spare and the love we can spare. And in return, dogs give us their all. It's the best deal man has ever made" - M. Facklam
"We are raised to honor all the wrong explorers and discoverers - thieves planting flags, murderers carrying crosses. Let us at last praise the colonizers of dreams."- P.S. Beagle
"All that is gold does not glitter, Not all those who wander are lost; The old that is strong does not wither, Deep roots are not reached by the frost. From the ashes a fire shall be woken, A light from the shadows shall spring; Renewed shall be blade that was broken, The crownless again shall be king." - J.R.R. Tolkien
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