Is the American public ready for the disappearance of Ford, General Motors and Chrysler? Certainly they are ready to see the back of the Big Three senior executives.

In this era of dynamically changing times, perceptions and mores, that which is old and established is not necessarily the right thing anymore, even if it worked for the better part of the last century.

During his recent testimony before the Senate and House committees looking at government loans to the Big Three automakers, GM Chairman and CEO Rick Wagoner said GM has been an American institution for the past 100 years. While this is perfectly true, its management style and business model have not changed much since the company was founded.

While on a visit to Capitol Hill on Thursday, December 3, Dr. Angelone, our Chief Economist noted after reading GM's new business plan that "the plan for peace put forth by Neville Chamberlain in 1938 made more sense!" Not at all enthusiastic about the plan presented, Dr. Angelone noted to members of the House Financial Services Committee "the possibility of any company being capable of repayment of more than $10 Billion in debt over a proposed three year period is unrealistic and impractical, at best".

At every turn, GM and its executive management under the direction of Mr. Wagoner are getting it all wrong. Despite the fact that GM has extensive departments with economists, accountants, financial officers and analysts, they did not foresee this economic crisis more than a year ago. Politely, we would like to point out to Mr. Wagoner he should have read this site as we lowly economists and financial experts in fact, did get it and wrote about it. We knew where his team did not, that there would be a liquidity crisis leading to defaults on everything from home mortgages to auto loans and massive small to mid-sized business closures (including auto dealerships). Could it be our [Epicurus Institute] small team outpaced GM and its vast resources and manpower? What happened, Mr. Wagoner?

Senator Chris Dodd (D-CT) recently suggested that Mr. Wagoner and other senior auto executives will likely have to go. Whether that is a likely requirement for a loan is in question, but at present, it may be a moot point as Senate Majority Leader Harry Reid does not have the votes for the deal.

Dr. Angelone pointed out recently following his sojourn to the Nation’s Capitol that "everyone there is so focused on giving them the loans, they are ignoring any other options and taking the wrong paths".

Out of the bulk of the Financial Services Committee, only Paul Kanjorski (D-PA), Chairman of the powerful Capital Markets Subcommittee had the sense to see that there may be alternatives and that the range of stakeholders is broader than the executives were discussing. Mr. Kanjorski suggested, in no uncertain terms, that a "bridge bridge loan" would be the best solution at present. Simply enough cash to get them through the next few months so some more sensible plan can be put in place to ensure long, not short term success for the three companies. Bravo Mr. Kanjorski.

Though Mr. Kanjorski voiced the general anger and sentiment of the American public, other members of the Committee also expressed the dismay and negative opinion of their constituents to the automakers.

It seems the majority of Americans are not on the side of the Big Three, though none want to see the concomitant loss of jobs and business closures, and all realize the negative impact on the overall economy.

So what is the solution? Clearly, the very first step should be a public letter from all three senior executive teams tendering their resignations 30 days following the approval of a loan package, even the "bridge bridge" proposed by Mr. Kanjorski .

All three need to find within their ranks an evangelical figure, as Lee Iacocca was to Chrysler in the 1980s, to lead them through this crisis; someone who, on speaking to the American public can create that most critical component of economic decision making – a warm and fuzzy comfort zone. The American public is looking for an inspirational leader for these companies, not technocrats who cannot find a tree in a forest. Keeping in mind that our system is based on faith and credit, some of that faith must be in the products we buy and the companies that make them. Right now, Chrysler, Ford and GM lack the ability to inspire faith in the buying public.