Issue Under Fire: Should Taxpayers Bailout Auto Industry; Like We Really Have A Choice
While all the attention is being paid to the Barack Obama transition team, and who is being considered for this and that big gig, we think more attention should be paid to the needed transition teams of the bailout recipients. From AIG to G M, Ford and Chrysler to the airlines or anybody else coming around looking for a taxpayer handout, particular scrutiny should be given to those that ran these industries aground due to their shortsighted & in many cases, criminally negligent management.
If the taxpayer is going to be on the hook to keep these companies afloat (and we will) and other Americans working, then the only way to reasonably guarantee a return on our faith based investment is to gut the management of these companies from the top down. We know this reeks of socialism as the government and the taxpayer will be the de facto owners of these institutions but the country has little choice at this point.
The common sense approach is the let the citizenry know that the billions needed to “reinvent” the auto industry is necessary to keep vast numbers of Americans on their jobs and away from the unemployment line. Should these jobs be lost, many will never return. For those that are lucky enough to find another job, few will pay the same and even less will come with comparable benefits. It has been reported that we will have as many as two million more people seeking government assistance in one form or another with lousy prospects for the future.
All these newly unemployed workers will no longer be able to meet their monthly financial obligations, leading to even more over due mortgage loans, car and credit card payments, with lowered credit ratings to boot. This will inevitable lead to fewer credit worthy prospects for lending institutions to market their financial services to, leaving them stranded with dough and no way to make money off of it.
We are only now really beginning to understand the true depths of the nation’s financial condition since the country was intentionally misled regarding the correct numbers of the job losses sustained over the last two months. With jobs being the very foundation of a sound economy, it is essential that the continued bleeding of American jobs be slowed at any cost. If GM and the other US automakers are allowed to go the way of Lehman Bros. the ramifications will be far more devastating and perhaps irreversible.
While many will correctly argue that the government is indeed cherry picking winners and losers we yield to their valid criticisms, but we are confident most will see the logic. It is an unfortunate truth, that some companies have grown to big to let fall, as the damage would be so far flung and so intense it could trigger the final stage of a complete collapse of the nation’s financial underpinnings.
With the Secretary of Treasure, big Bank Hank Paulson at the helm, clearly out of his league in handling the nation’s economic crisis, it is going to be up to the next administration along with cooperation from the other G-19 governments to restructure and re-regulate the way global business is conducted going forward. With Secretary Paulson doing an about-face on the initial use of the $700 billion bailout package of buying troubled mortgage assets, once thought to be the foundation of the so called rescue plan, he is now heading down another rocky road entirely.
Thus far, Secretary Paulson and this administration won’t even admit we are in a recession let alone the country is showing signs of a full blown a depression. While Gordon Brown of the UK acknowledged last month the Brits were teetering on the edge of a recession and prepped his nation accordingly and the Japanese today reporting they are currently experiencing a recession, we as Americans are the last to get the truth from our leadership.
From our vantage point, it is Secretary Paulson that is one of the root causes of the market’s erratic behavior and the world’s uncertainty. Secretary Paulson and company have done little else other than scare the hell out of an aging and incompetent congress by convincing them to ignore their constituents and granting Paulson a check without have the slightest understanding of what the hell was going on.
Without doubt, there are going to be others lining up to get their asses pulled out to the hot fires of red ink, and we are going to be forced to bail them out as well. The difference this time around is the country will be taking title to any and all who takes one dime of the taxpayers cash under these circumstances while relinquishing any claims to big bonuses, excessive compensation or even their continued connection to said companies.Click here for the podcast
If the taxpayer is going to be on the hook to keep these companies afloat (and we will) and other Americans working, then the only way to reasonably guarantee a return on our faith based investment is to gut the management of these companies from the top down. We know this reeks of socialism as the government and the taxpayer will be the de facto owners of these institutions but the country has little choice at this point.
The common sense approach is the let the citizenry know that the billions needed to “reinvent” the auto industry is necessary to keep vast numbers of Americans on their jobs and away from the unemployment line. Should these jobs be lost, many will never return. For those that are lucky enough to find another job, few will pay the same and even less will come with comparable benefits. It has been reported that we will have as many as two million more people seeking government assistance in one form or another with lousy prospects for the future.
All these newly unemployed workers will no longer be able to meet their monthly financial obligations, leading to even more over due mortgage loans, car and credit card payments, with lowered credit ratings to boot. This will inevitable lead to fewer credit worthy prospects for lending institutions to market their financial services to, leaving them stranded with dough and no way to make money off of it.
We are only now really beginning to understand the true depths of the nation’s financial condition since the country was intentionally misled regarding the correct numbers of the job losses sustained over the last two months. With jobs being the very foundation of a sound economy, it is essential that the continued bleeding of American jobs be slowed at any cost. If GM and the other US automakers are allowed to go the way of Lehman Bros. the ramifications will be far more devastating and perhaps irreversible.
While many will correctly argue that the government is indeed cherry picking winners and losers we yield to their valid criticisms, but we are confident most will see the logic. It is an unfortunate truth, that some companies have grown to big to let fall, as the damage would be so far flung and so intense it could trigger the final stage of a complete collapse of the nation’s financial underpinnings.
With the Secretary of Treasure, big Bank Hank Paulson at the helm, clearly out of his league in handling the nation’s economic crisis, it is going to be up to the next administration along with cooperation from the other G-19 governments to restructure and re-regulate the way global business is conducted going forward. With Secretary Paulson doing an about-face on the initial use of the $700 billion bailout package of buying troubled mortgage assets, once thought to be the foundation of the so called rescue plan, he is now heading down another rocky road entirely.
Thus far, Secretary Paulson and this administration won’t even admit we are in a recession let alone the country is showing signs of a full blown a depression. While Gordon Brown of the UK acknowledged last month the Brits were teetering on the edge of a recession and prepped his nation accordingly and the Japanese today reporting they are currently experiencing a recession, we as Americans are the last to get the truth from our leadership.
From our vantage point, it is Secretary Paulson that is one of the root causes of the market’s erratic behavior and the world’s uncertainty. Secretary Paulson and company have done little else other than scare the hell out of an aging and incompetent congress by convincing them to ignore their constituents and granting Paulson a check without have the slightest understanding of what the hell was going on.
Without doubt, there are going to be others lining up to get their asses pulled out to the hot fires of red ink, and we are going to be forced to bail them out as well. The difference this time around is the country will be taking title to any and all who takes one dime of the taxpayers cash under these circumstances while relinquishing any claims to big bonuses, excessive compensation or even their continued connection to said companies.Click here for the podcast
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