So after we the American public petitioned our Representatives and Congressmen, and tried to shake some common sense into them about why throwing money at the problem is a bad idea. We're told that unfortunately it's NOT ENOUGH!
U.S. Treasury Secretary Henry Paulson comments that it'll take a lot closer to $5,000,000,000,000 (yes, FIVE TRILLION DOLLARS) to "fix" the problem. You know what I say? F*ck 'em.
Let them go under... they'll learn from their mistakes and be better off because of it. It's quite possibly the best thing that can be done in this situation.
To add to the problem. We don't even know where some two billion dollars in emergency government lending went despite several requests that it be made public in accordance with the Freedom of Information Act.
But you thought that was bad, I guess I forgot to mention that there's much more. Both GM (because they own GMAC--a lending company) and GE are either in the process of getting bailout money or are petitioning for it.
To compound on this, President elect Barack Obama wants to give detroit auto-makers $50 billion to keep them from going under. I have an idea... why not get rid of the $%^&*#! unions that prevent the American auto industry from being competitive?
Seriously, how expensive is it to live in Detroit? Come on... why is it that a Union factor worker makes more than a school teacher with a Master's degree, don't you see something wrong here?
But wait, I'm not finished yet. The City of Detroit recently petitioned the Fed for some of this wonderful free money, and reports are that NYC is soon to do the same.
So you have to ask yourself? Do we honestly believe that we can fill a sink hole by throwing more money into it, or would it be better to just back off and see if it'll swallow itself up?
2 comments:
I don't think anyone likes paying for the bailout, but even as a right winger I will say I do not want to see these companies fail. If these companies are to fail it could have a crippling impact on the entire economy and cost me more than the bailout. I want to see the bailout sent correctly and the executives to pay as well.
I don't want to see these companies fail either, but look at what's happening as a result of the original $700 billion dollar bailout. GM wants money, GE wants money, cities (including the largest metropolitan area to myself) are begging for money. It's too hard to resist free money when it's offered.
The problem is that we feel that we can fix capitalism by having the government fix the problem; this has never been the case in American history. It was only America's launch into WWII (and the resulting demand for military goods) that brought America out of the depression.
The fed throwing money at companies asking for it might fix the problem, but what we'll have will no longer be capitalism.
Likewise, how is this going to affect the rate of inflation?
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