A dose of tough love – first condition being a "prepackaged bankruptcy."
Roubini: Bail Out the Automakers, But Only on These Conditions…
by Aaron Task at Tech-Ticker 
Excerpt:
Congress should approve a bailout of the U.S. auto industry because the "collateral damage" of their failure would be "very severe," says Nouriel Roubini, economics professor at NYU Stern School and chairman of RGE Monitor.
"We’re spending $2 trillion to bail out financial institutions," the economist notes. "What’s the fairness of not giving say $50 billion of low interest loans to automakers to help them restructure?
But Roubini is no ally of the auto industry CEOs currently making their case in Congress. He says any government aid must be "highly conditional" and only occur after a prepackaged bankruptcy that includes:
- Replacement of current management
- Concessions from both the UAW and automakers
- A wipeout of existing equity and debt-holders
- Temporary nationalization of the auto industry
More here.
