CNBC Pros Say: Darwinian Pain Good For Strong Companies - Economy * US * News * Story

The Cost of True Love
In the popular holiday song "The 12 Days of Christmas," the cost of gifts - from the 12 drummers drumming to a partridge in a pear tree - is quite pricey.
Runway Angels
The superbowl of fashion shows, models walk down the runway at the 2009 Victoria's Secret Show.
Smartphone Guide
Here's a need-to-know guide to nine devices, based on features, price, network and platform.

FEATURED QUIZZES

Test Your Google IQ
How much do you know about the most popular search engine in the world? Take the following quiz and find out.
How Well Do You Know Your Bird?
Let's talk turkey. Test your turkey knowledge and perhaps pick up a bit of trivia to trot out at your holiday meal.
A Healthier & Wealthier You
Take the following quiz and find out how much you know about the impact of obesity on the health of the U.S. economy.

SPECIAL REPORTS

Holiday Central
There are plenty of reasons to believe that this Christmas holiday season will not be as bad for retailers as last year.
Winterizing Your Portfolio
If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.
Investor's Guide to Real Estate
Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.

CNBC ON DIGG

Pros Say: Darwinian Pain Good For Strong Companies

By: CNBC.com | 19 Dec 2008 | 12:57 PM ET

Text Size

On Friday, the auto bailout was announced: General Motors and Chrysler will get up to $17.4 billion in short-term loans from the U.S. in return for deep concessions, as the Bush administration cited danger to the national economy. Treasury Secretary Hank Paulson reversed himself, asking for the second half of the TARP fund, some $350 billion. Many observers are asking: who gets bailed out next — and where does it end? Strategists told CNBC the bailout is going to make things worse; but one airline CEO sees a healthy Darwinian market process.

Auto Bailout: Downsizing vs Waste of Time & Money

Eric Thorne of Bryn Mawr Trust Wealth Management said the plan really does not change anything, and runs the risk of throwing good money into a bad business model. The auto industry is broken, he said, and he doesn't see what $18 billion is going to do to fix it. Invesco AIM's Fritz Meyer said terms of the loan are a forceful push in the right direction, with the endgame a very substantial downsizing.

2009 Will be Rough — But the Strong Survive

Former Continental Airlines chairman and CEO Gordon Bethune said businesses that focus on their products and integrity will beat their competitors, and the economy will come through 2009, even if "everybody's going to hurt." He said what people want is consistency, whether it's in a restaurant or an airline.

President's Auto Move: Appeasement Now, Disaster Later

Jack Bouroudjian of Capital Market Technologies said that rescue actions such as President Bush announced for the auto industry will not be regarded as market-friendly a few months from now.

_________________________________
CNBC Investor Tools:

________________________________
CNBC's Companies in the News:

General Motors [GM Loading... () ]