This morning I read that the American auto companies are asking for a 50 Billion Bail-out by the U.S. government and McCain has said he might consider it.
I say enough is enough. Our government has bailed out enough businesses and it is time to let the capitalist system work by itself.
I did not agree with the Bear Stearns bail-out. You make stupid financial decisions, then you pay for your stupidly. The feds said a Bear Stearns failure would have dominoed throughout our economy, hurting too many people. Well?
The auto companies knew this day of higher gas prices was coming. Every Tom, Dick and Harry knew it was coming. I can excuse Joe Public for not worrying about it and continue to buy gas guzzlers but the auto companies had a duty and obligation to their shareholders to be prepared for such an eventuality and the fact that they were not is shame on them.
The unions were allowed to demand higher and higher wages and benefits even though the auto companies knew that the costs were unsustainable. They went on a buy-out binge of those high priced workers, cut medical benefits to retirees and slashed production. Good, keep it up and maybe you will survive. As to wanting capital to finance the building of a new, high mileage vehicle line – sorry, get the money on Wall Street not the tax payer.
They will say that they ONLY want the government to guarantee those loans not make those loans. Well, I am not sure all the auto companies will make it and when they go belly-up, the taxpayer is on the hook to re-pay those loans – no deal.
Same goes for Freddie Mac and Fannie May. The people running those quasi-government institutions were stupid and corrupt and Congress let them get away with it. Yes, they made home ownership easy and affordable but just like all the rest of the companies, they needed to be prepared for a downturn and they were not and so…
Bad economic times are also times of opportunity and times when real change can occur to help prevent this from happening again.
The only shame is that little guys get hurt because these huge guys were stupid but how else are they going to learn if they are always bailed out by Uncle Sam?
I say enough is enough. Our government has bailed out enough businesses and it is time to let the capitalist system work by itself.
I did not agree with the Bear Stearns bail-out. You make stupid financial decisions, then you pay for your stupidly. The feds said a Bear Stearns failure would have dominoed throughout our economy, hurting too many people. Well?
The auto companies knew this day of higher gas prices was coming. Every Tom, Dick and Harry knew it was coming. I can excuse Joe Public for not worrying about it and continue to buy gas guzzlers but the auto companies had a duty and obligation to their shareholders to be prepared for such an eventuality and the fact that they were not is shame on them.
The unions were allowed to demand higher and higher wages and benefits even though the auto companies knew that the costs were unsustainable. They went on a buy-out binge of those high priced workers, cut medical benefits to retirees and slashed production. Good, keep it up and maybe you will survive. As to wanting capital to finance the building of a new, high mileage vehicle line – sorry, get the money on Wall Street not the tax payer.
They will say that they ONLY want the government to guarantee those loans not make those loans. Well, I am not sure all the auto companies will make it and when they go belly-up, the taxpayer is on the hook to re-pay those loans – no deal.
Same goes for Freddie Mac and Fannie May. The people running those quasi-government institutions were stupid and corrupt and Congress let them get away with it. Yes, they made home ownership easy and affordable but just like all the rest of the companies, they needed to be prepared for a downturn and they were not and so…
Bad economic times are also times of opportunity and times when real change can occur to help prevent this from happening again.
The only shame is that little guys get hurt because these huge guys were stupid but how else are they going to learn if they are always bailed out by Uncle Sam?
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