Friday, November 28, 2008

Reallocating Resources

Bob Crandall and Cliff Winston of Brookings opine on the problems facing the auto industry:
In our judgment, based on experience elsewhere in American industry, the most constructive role the government can play at this point is to provide a short-term infusion of capital with strict repayment rules that will essentially require the auto makers to sell off their assets to other, successful companies.