The health care debate roiling the nation promises an even greater impact in Michigan: It could determine whether the UAW’s gamble that it can insure 850,000 retirees from Detroit’s automakers pays off or goes bust.
Experts say they could collapse fast:
Outside experts estimate the funds have about 30 cents in cash for every dollar of future claims, with no guarantee of what its stock assets will be worth. Lance Wallach, a New York-based VEBA expert, says if the funds "don’t get something, they’re out of business in 12 years."
So if anybody asks “why the rush”… its because they want to lock in this sort of stuff before 2010 knocks the Democrats out of power.
The right answer, of course, is for the unions to meet their obligations. They own most of GM now. Make it worth more, and focus that money on meeting your obligations.
Unfortunately, a few million to Senators is cheaper than doing the right thing.