There are all kinds of theories about how to save the Big Three automakers. At the radical end of the spectrum: lease the entire state of Michigan to China.
Josh Hyatt, CFO Magazine
January 1, 2009
Selling a State? What happens to the US citizens that live and own property in Michigan when 10 million Chinese come to town (and they would probably be the 10 million worst humans China has to offer)? What was a beautiful state would fall deeper into disarray; the (Michigan) economy would further collapse; and through the new low cost Chinese labor, the 'free market' would ultimately shift the created wealth back to China and the US economy would not get the benefit. Like most substantial things done by our government, the 'bail-outs' are yet another example of stupidity hard at work. Instead of giving trillions of dollars from my wallet straight to the banks and big business, why not give tax payers a rebate check. The rebate would be taxable at the rate of 100% (ie., given back) if not used to pay sub-prime loans, second mortgages, credit cards or other unsecured debt, or purchase a Detroit made car. My point is giving tax payers the money benefits them, the banks and big business get their badly needed cash flow, loan balances are paid down without massive write-downs and bank equity is preserved. Obviously this is just a rough ideal, but in concept, a much smarter way of shifting wealth.
Posted by Ron Johnson | January 15, 2009 04:35 pm
Great solution to a major issue for a corporation that need cash-flow. Each state is sovereign and is its own corporation. We have a history of leasing ideas and raw products. We have INS that is responsible for these programs through their incubator investments programs. (citizenship).
Posted by John Jones | January 14, 2009 04:45 pm© CFO Publishing Corporation 2009. All rights reserved.