Thursday, February 19, 2009

No to more bailout money for Detroit

These days it seems as though the taxpayer's ability to provide funding for broken companies is unlimited. This week, GM and Chrysler presented their restructuring proposal to Congress. As I see it right now, shoring up the auto industry in Detroit could add up to $130 BILLION. Are you kidding me?

That number includes bailout money for the manufacturers, parts suppliers, dealers and consumers. For my money, I would rather have the government send me a check for $20,000 (since its our money anyway) to enable me to purchase a new, fuel efficient US made car of my choice. What's the point of lending BILLIONS to the auto manufacturer and other related automotive businesses if consumers won't buy cars??????

I am getting really tired of talking about one multi BILLION dollar bailout after another. How much more can this country borrow. How much more debt and leverage (the very behavior that got us in this mess in the first place) can the taxpayer silently agree to provide???

With any government expenditure, waste, corruption and outright theft are primary components and we can expect these bailouts to be NO DIFFERENT. Billions will simply disappear and / or be wasted by unscrupulous civil servants and greedy recipients.

Once again, enough is enough. Unless we decide that America is now fully committed to developing into a full blown socialist republic we need to put the brakes on this spending right now. Consumers and corporation, including the worst of all of the corporate citizens, our big banks, who all made bad decisions in the past decade DO NOT DESERVE to be bailed out.


There is no way given the current state of the American Auto Industry that these loans can EVER BE REPAID. Any suggestion to the contrary fully ignores the fact that GM and Chrysler cannot compete with the foreign manufacturers many of whom build their cars right here in America. Chrysler is a PRIVATELY held corporation whose shareholders are all rich, greedy churn and burn specialists that got caught up in a very bad investment. Let them fail. There is no hope for Chrysler unless they are acquired by another manufacturer. If that happens, WE SHOULD NOT PROVIDE the capital to make that happen. Why should we as taxpayers be burdened with the responsibility to save these bad investor's investment from going bad?

Jobs??? Those jobs are doomed and have been for decades as the top executives paid themselves huge salaries while their businesses were slowly dying. Let them disappear into the sunset of corporate failures and let this be a lesson to other large corporations.

Years ago when I took a course on the art of negotiating, the most important thing I took away from the class was that when you give up something, you must get something in return. What is the taxpayer giving up and what will he get in return? I submit that the answers are: everything and nothing. Let's pass on bailing out two of the worst managed companies in our country and let new blood purchase whatever assests are deemed to be useful and let's move on. What do you think?

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