It’s a no win situation. If the auto companies tank, the effect on the economy would be devastaing. Yet throwing good money after bad management would be equally devastating and quite foolish.

Yet here is a plan we hatched on the MacRanger Show last night.

First, in order to secure any cash from the Government the auto companies would have to summit to a top to bottom audit of their books. Perhaps the GAO could spearhead this endeavor, or even contracted auditing firms. This audit would be comprehensive, yet brief given the critical nature of the economy.

The audits would examine the books to see just where these companies actually got into the fix they are in today. No stone would be unturned. Yes we know it’s the economy and other factors that contributed, but one would suspect that their overall business model or practices are some what at fault. Let’s not forget that it’s the taxpayer’s money that is being asked for. The price we demand is full disclosure of their accounting practices and methods of business.

Upon the completion of the audit a comprehensive plan would be recommended and then, and only then – and upon contractual agreement with the Government, could the companies secure funding in the form of a interest loan to get back on their feet.

In this way the money would be returned to the tax payers with interest, the bad business which led to their downturn would be exposed and corrected.

Short of this I can see no feasible way to bailout auto makers.

What do you think? Comment away!