Thursday, November 20, 2008

A bailout to nowhere

What is it about the proposed auto industry bailout that causes Congress to blink? After all, the federal government has given out billions and billions more to the greedy bastards who run the financial world. And those Wall Street SOBs have rubbed our face in it with crazy spending sprees at resorts and with incredible bonus packages -- and still they ask for more. More!

At least the car makers have a product, you say.

Yes. And that’s part of the problem. Auto manufacturers don’t have the right product mix. Gas prices are high and interest rates are higher but Detroit keeps on trying to sell us big trucks, big cars and big price tags. As if anyone could even get a loan these days.

Management is stupid. Fire them all. None of them can even spell G-R-E-E-N.

The unions are not much better. We pay around $30 more per hour than our overseas competitors. Fire the unions, too.

Analysts propose we drop some U.S. car brands and close some plants. This would be painful, costing perhaps hundreds of thousands of jobs in the hopes of creating millions of future jobs to build better American cars. Tough choice.

And then there’s the bigger problem – the world wide economic meltdown.

Frankly, I think Congress needs to get out of the bailout business. Just look at how Secretary Paulson has ignored legislative intent, ignored the homeowners and helped his palls on Wall Street. Billions and billions. Hundreds of billions.

And it’s not working.

We need to stop this give-away madness. Let’s start over. I don’t want to be a Socialist.

8 comments:

JohnSBoles said...

I don't want to be a socialist either. Orwell's "Animal Farm" taught us all we need to know about socialism. Eventually some pigs believe they are better than other pigs.

The South Plainsman said...

See, there is a point where liberals and conservatives can agree. My view of all of this is that we need to save the money to rebuild, not throw it down the drain trying to save failed companies.

Our politicians are acting out of fear, and do not really know what to do. Most are just trying to save their special constituencies.

I hear the cost of all of this has gotten up to $5 trillion. That is a lot of money to have to pay back, and at the end, there will be little that we gained for it.

As I said, we need to save the money to rebuild.

Anonymous said...

You took my fire away from me. I had planned to come out blazing on this subject that I finally know something about on your blog. You just earned an inexpensive bottle of wine in February. (please invite M.W.)
JR

Anonymous said...

I think the CEOs are going to have to be like the Nazis after WWI - they are going to have to go into hiding in South America!

Sharon

Anonymous said...

Whether we like it or not, we are in an international economy with no return to isolationism. If we do not bail out the auto industry, they will find their way in time to make a group of products than can and will compete with the world. The current financial model does not work because of our outdated factories and super high overheads when compared to the other auto manufacturers in the world. We do not manufacture televisions in this country and have not for decades. I can say the same for other industries that are almost extinct in this country such as the textiles. I despair when I read on this blog WHO is to BLAME. The one side blames the management and the other side blames the unions. We have enabled this industry for such a long time that it is like welfare and having an entitlement. It is what it is!! This is truly one area where all need to recognize that our economy will survive a "no bail out" and get on with the operation rather than placing an aspirin on the wounds. I know competent management and workers who by working together could turn this around in two years. Now, I will return to my wine, thank you very much.
JR

The South Plainsman said...

Don't drink too much wine! This whole thing is not either the fault of Republicans or Democrats. All are at fault. What we have done over the last forty years is permit a system to develop where we all thought we could get something for nothing. Want something? Just borrow to get it. Just borrow until you are broke, then borrow some more. The government and businesses and consumers all borrowed as if there were no tomorrow.

Well, tomorrow is dawning, nobody can pay, and the system that permitted all of that is collapsing.

We have danced to the music, and it is now time to pay the Piper.

From the moment that Nixon abandoned the gold standard this reckoning has been coming. Rather than use up the rest of our capital (if any) trying to keep the failed system going, we need to save it to rebuild a new system.

Anonymous said...

I'll say as I said before "NO BAILOUTS". The monetary and industrial pork chompers have developed a system whereby they can pass just about everything onto us,the dumb public. A few years ago the nuclear electric plant near Glen Rose developed some major problems.Well the stockholders of Comanche Peak,the nuclear facility,cried for a long time, afraid that they were going to have to lose on the whole deal. Never fear, our august legislators decided that the consumer must pay for the management mistakes.
Oh well I guess I'll just use my portable generator that takes 6 gallons of gas for 9 hours of operation. --Goose

George Phenix said...

Besides, the last decent car they made was the l957 Chevrolet BelAir.

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