Put automakers in rehab — then bankruptcy court

To the editor:

I have been an opponent of a bailout for U.S. automakers -- in any form outside of Chapter 11 bankruptcy.

I strongly supported a proposal by Nevada Sen. John Ensign (and still do) that would allow the automakers to enter Chapter 11 under the direction of U.S. bankruptcy judges. This would provide them with protection long enough to make the radical changes needed in their business models and align their internal steering mechanisms with the realities of their external markets. I was in support, as was Sen. Ensign, of providing government financing to assist these automakers -- while in Chapter 11 -- with such things as warranty guarantees and debt repayment loans.

I still believe that this is the best long-range plan for these companies. They need to be put in a Betty Ford Clinic for business cultures. They need a form of tough-love rehab, not more cash injections.

Once, many years ago, I was returning to Los Angeles by plane from the East Coast. As we approached Los Angeles International Airport I noticed that the gentleman sitting across the aisle from me was shaking badly. I asked the hostess what was wrong with the man, and she said that he needed a drink and had run out of money. Without hesitation, I bought him a drink, and he immediately stopped shaking. I knew that this was no long-term fix for his problem. I felt badly for him.

Maybe that's the motivation for handing the automakers this round of $17.4 billion. But the next stop should be Chapter 11 and bankruptcy court.

The healthiest automakers in America are foreign-owned companies in the South, which are putting thousands of Americans to work at competitive labor costs. Supporters of the United Auto Workers are alarmed at the prospects of having to compete with this labor.

American automakers cannot survive without their federal cash infusions. States and local governments in the South, meanwhile, are luring foreign automakers to their turf with blessings of their constituents. All are reaping financial gains from these automaker transplants.

We've got to learn to survive in a competitive global economy or perish at its hands.

Bob Jack

NORTH LAS VEGAS

Corporate America

To the editor:

This is what I have figured out over the past several weeks: Corporate America is often too big to fail, at times too important to investigate, able to charge a government credit card at 0 percent interest and is not required to disclose a paper trail of massive public monies. On the flip side, the common worker is often too small to stand alone -- suffering 558,000 lost jobs last month -- credit is evasive, credit card interest rates are exorbitant and rising, and home foreclosure relief is pathetically ineffective.

The public has listened intently as politicians scramble and blather, speculating and justifying massive economic schemes to little avail other than restocking corporate coffers. Politicians repeat the mantra of how insurance giant AIG and international bank CitiGroup are simply "too big to fail," how they must be protected and supported at all costs for fear of a catastrophic trickle-down effect. And now in the works, pleas from the formerly high-flying Big Three automakers for additional bailout monies.

Over the past few weeks, securities firm chief and former Nasdaq Chairman Bernard Madoff was indicted for masterminding the world's largest Ponzi scheme, defrauding investors of $50 billion. And the Federal Reserve lowered the bank-to-bank lending rate to as low as 0 percent interest. Then there are the massive executive "discretionary" bonuses still being sought and inexplicably awarded. As recent as last month, Morgan Stanley reported $10.7 billion was geared for bonuses. Stories like this abound inside supposedly cash-strapped investment banks.

And while corporate America acts like it's business as usual with the public funds, the indignities and assaults against the average citizen simply continue.

There is pending legislation in Congress permitting credit card issuers to "balance chase" credit card customers. In short, it would allow creditors to increase a consumer's interest rate based on the tightening credit market, regardless of positive payment history.

The Securities and Exchange Commission chairman disingenuously assured the public "every necessary resource ... has been dedicated to pursuing the investigation, protecting customer assets and holding Mr. Madoff ... accountable." He is charged with a single count of fraud involving $50 billion, which at most it carries a fine of $5 million and 20 years in prison for the 70-year-old.

Despite public outcry firmly against the $700 billion Wall Street bailout, it passed. Still, banks refuse to divulge how much -- if any -- was used from the Trouble Asset Relief Program.

According to the recently formed Congressional Oversight Panel for Economic Stabilization, 87 unidentified banks received $165 billion. The cost to every unidentified American family is estimated at $1,900 with no identifiable end in sight.

The rules of accountability, fairness and transparency for the politically powerful of Wall Street and the ordinary citizen are immensely disparate, and it plainly shows at every point.

Martin Dean Dupalo

LAS VEGAS

'Stimulus' lunacy

To the editor:

The coming $600 billion to $1 trillion economic "stimulus" package is such a misguided deed it borders on lunacy.

All 50 states currently receive federal money for construction and maintenance of bridges and roadways. Are we to tear up the roads and bridges we have to rebuild them? Do we not have enough road construction in Las Vegas already?

If this farce actually moves forward, it will be years before any ground will actually be broken on any new projects. I need to mention, of course, the numerous lawsuits the greenies undoubtedly will file to fight anything to do with government construction.

How do we export roads and bridges? What will actually be produced to sell to the world? How will this plan increase the gross domestic product, raise tax revenue and put people in permanent, good-paying jobs?

A much better $1 trillion stimulus package would reduce the corporate tax rate from close to the highest in the world to match Ireland's at 12.5 percent; encourage foreign and domestic corporations to once again set up shop in America; lower the withholding tax rate on struggling workers; loosen up the archaic restrictions on energy development; and unleash the American work force to once again lead the world to success and prosperity.

Robert Opp

LAS VEGAS

Savings from starving

To the editor:

In response to your Dec. 16 report, "Snap, crackle and prisons," and Assemblyman James Settelmeyer's request to hold the eggs -- and all hot breakfasts -- in correctional facilities: Mr. Settelmeyer, R-Gardnerville, is quoted as saying, "Prison is supposed to be a punishment." Well, with one-quarter of the world's incarcerated persons right here in the United States, we should be experts.

My 26-year-old child is in the Nevada prison system because of a biologically based mental illness. I cannot begin to describe the hell on earth that is prison. I can guarantee you that it is severe punishment, whether appropriate or not.

Mr. Settelmeyer, it costs more than $8.50 per day to feed a person. Yet the Nevada Department of Corrections manages to feed each of our state's incarcerated persons on $2.17 per day.

On visits to see my child, I can buy extras from machines. It is the most awful collection of high-priced junk food ever presented. It disgusts me to pay for it, even to blunt hunger, because, of course, $2.17 doesn't give you much volume.

You claim to be motivated by a noble desire to save the state money. Nice timing. You claim savings of $1 million. Last week, the Review-Journal also reported that outstanding Las Vegas traffic tickets total $135 million.

This mean-spirited and pointless bill says a lot about Mr. Settelmeyer.

LYNN T. HAAS

RENO