Unfortunately, it is time to let some, most, fail. The companies are lining up to literally grease their pockets with tax payer dollars. Today, American Express requested to become a deposit bank in order to qualify for some of that cash. If I say I am a bank, will you give me some extra cash too? I could use it right about now.
Next in line is the "big three". Do we really need to save the auto industry too? What happens if we let them fail? It could actually be a win-win situation to let these companies fail. Throwing money at this industry is not going to solve the problems they are facing. In fact, it will most likely make it worse. If in fact we let them fail, the market will take care of the problem.
The reason that American car manufacturers can no longer be competitive is because they are being dragged down by their unions. Foreign car companies, who also employ a large number of American workers, are not beholden to the unions. They are able to be more competitive and offer better cars at cheaper prices. Every American made car has $1500 built into the price for health care costs to union members. This amount doesn't include the pension plans that the unions have enforced onto these companies.
If these companies are allowed to fail, some will be gone for good, others will reorganize under Chapter 11, and other companies will step up and fill in the voids. If we let them fail, it will send a signal to other companies and other industries. It will force them to find alternative solutions and they will find those solutions.
If we bail out this industry now, next week there will be another dozen lined up with their hands out waving to Congress. Where will it stop? There was news today, that the US' credit rating may be lowered from "AAA." It will cost us more to borrow from other countries. Our debt will continue to rise and we will find ourselves in a weakened state of affairs. I don't mean financially.
Unfortunately, they won't be allowed to fail. The Democrats have too many favors to pay back to the unions.
Posts
4 comments:
According to CNN, the Treasury is going to purchase stocks in failing institutions instead of the toxic assets originally discussed.
http://www.cnn.com/2008/POLITICS/11/12/campbell.brown.bailout/index.html#cnnSTCText
This whole thing stinks like free money for big failing businesses.
Thank you President Bush for another fine mess that will have to be fixed. Don't get me wrong, I despise all those who approved this bill, but at the time, it seemed like the right thing to do. Now it looks to have been another scam by the Bush administration.
GRRRRR.... President Bush can't leave office soon enough....
An American Liberal
See, I called my Congressman and told him to vote "NO!" because I knew this would happen. The Democrats want to get money to the big business and Union people. (Con) The Republicans want to get money to big business (con).
They're BOTH conning - Republicans AND Democrats. NO! But they aren't listening.
Well, they will hear the message loud and clear when their TAX SLAVES LEAVE THEIR PLANTATION AND GET AN EMANCIPATION PROCLAMATION as the Sovereign States secede.
We've all been ripped off long enough. If the American liberal here "wakes up", he'll/she'll see that these Republicans and Democrats at the Federal Level are ALL CROOKS! (And Obama is the biggest crook of them all so far from what I've seen.)
I think it's time to Constitutionally secede because the best way to "throw the bums out" in DC is to Sovereignly secede as States so that the Federal Government can never tax us again and steal our money and give it to their cronies or waste it on Social Programs that are too expensive and only do the fat cats and the big businesses and lobbies and bureacrats any good.
DC is organized crime. They don't deserve ANY of our money!! And we don't deserve to made into their tax slaves for their utopian dreams that won't work or their special interest friends.
Laura
The government is slowly killing the free market and nationalizing these companies by bailing them out. At first, the rhetoric will be to save the free market, but it's obvious to me the Federal Reserve will control these entities by having this bailout hung over their heads. The free market loses it's power as the Federal Reserve gains power. It's scary as hell. They will force hyperinflation next by printing and printing more money further weakening private industry. I hope I am wrong, but I have never seen anything like this in my life. I am concerned, very concerned. The Fairness Doctrine is coming back to keep the people who see this for what it is quiet. My question to you is Obama just a bumbling/fumblin socialistic puppet necessary to blind the masses with pathos based rhetoric in order to allow this to happen?
We should all just quit our jobs and let the government support us. I'd love to sit on my porch and sip brews while Uncle Sam sends me a check every month!
Post a Comment