France shields while we shaft

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I've been reading editorials suggesting we should let GM fail. It is interesting to see how our competitors are handling the situation. President Nicolas Sarkozy had this to say:

Vowing to protect French industry from foreign predators and a worsening economic slump, President Nicolas Sarkozy introduced a ¬20 billion strategic investment fund on Thursday and announced its first investment.

Sarkozy is right to wonder what happens if the big manufacturing concerns in France go under, or worse, if they are purchased by a foreign entity with cash to burn, like China.

He added: "The day we don't build trains, airplanes, cars and ships, what is left of the French economy? Memories. I will not make France a tourist reserve."

What will happen to America without a GM or Ford? Now, don’t get me wrong. I don’t think we should bail these inefficient behemoths out of their current mess. No, I suggest we offer the same type of commercial paper financing that they were getting before the financial crisis. I have no doubt that GM will be a much different entity a few years from now. My hope is that our auto industry is not purchased at fire sale prices by the PPR or a Middle Eastern oil rich monarchy.

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