Arm twisting the oil companies to lend money to the auto industry sounds like a great idea, especially if you keep taxpayer money off of the table.

However, Rick Wagoner (CEO of GM) has repeatedly said that the auto industry wants the eyes of the consumer to be off of automakers when it comes to being “the problem” for high gas prices. I wonder if such loans would only add fuel to that fire?

I disagree somewhat, however. While I think bankruptcy might be viable procedurally and financially, I just can’t see it going over well with the American public. Too big a blow to the national psyche.

Here’s my suggestion: Bush should armtwist the oil companies into loaning the up to $25 billion. Big Oil has much more cash on hand than that just sitting around. The two industries depend on each other … autos have provided plenty of revenue for Exxon et al and now it’s time for them to return the favor. They presumably would insist on needed reforms as a condition for the loans and who know, might even make some money. I would like to see a private solution like this to the problem, not a government bailout.

It happened with US Airways and a number of other companies that are saddled with outdated pension plans are funded by corporate income rather than investment income, and expensive health care programs demanded by the unions over the years.

There is no easy solution to this problem, but there is little doubt that unions are to a great extend resposible for it.

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