3 Came In - Only 2 Walked Out

Ex-Gov. Eliot Spitzer has an interesting idea posted in Slate on how to do the bailout right. He thinks that the government should put up the $25M - but only give it to two! Make the 3 compete for the funds and the Feds will pick the 2 plans that look the best. Intriguing.

Why don't we tell the current Big Three that $25 billion in capital is available—but only to two of them? The surviving two will be those that submit the best, and final, binding bids, supported by all the necessary constituencies: boards, managers, suppliers, vendors, creditors, and the UAW. The plans that are the best, as judged by a panel of private- and public-sector figures—Jack Welch, Warren Buffet, or Felix Rohatyn, plus Office of Management and Budget and Congressional Budget Office officials—are the plans that will get funded. The measures they will be judged by will be announced ahead of time and will be a combination of retained/gained market share, return on capital, jobs retained, and mileage and environmental efficiency gains. The company with the least impressive plan will be denied funding.