Many of you have asked me recently why I think it is wrong to bail out GM, but OK to help Citibank. This is why: The answer revolves around the difference between the financial system and the auto industry. The financial system is a vast and sprawling part of the economy. It is also the […]

I don’t exactly know where this comment was made, but it seems right on to me: Krugman: US Auto Industry Will Probably Disappear The essence of this issue is that the American auto industry is in bad shape not because of the current economic slump, but because it is horribly uncompetitive. It makes awful products […]