In pushing for a bail out of the motor industry, I believe Barack Obama has made his first mistake, before even taking the oath. Detroit's business plan has for years been unrealistic. The three companies have been making cars which no one wants to buy, shored up by a tax break on SUVs. That has been enough government interference. They cannot export their way out of trouble because no one in Europe or Asia wants something the size of a truck with an enormous inefficient engine, and which doesn't go round corners too well. The industry should go into bankruptcy and anyone foolish enough to own shares in it must take the hit.
In the UK, Jaguar Land Rover was bought just a year ago by one of the world's most successful businessmen, Ratan Tata. His business plan must have seen the downturn coming, and it would be perfectly preposterous for the hard hit British taxpayer to bail him out. I doubt the expertise exists in Lord Mandelson's department to understand all this, but they should at least have an inkling as to how badly various governments have run the British Motor industry in the past - I should say UK because De Lorean was the creature of the Northern Ireland Office.
I suspect they will spray our money around just to cause the Tories difficulty. Thanks.