Posted on 11/18/2008 5:36:31 PM PST by davidosborne
Are we talking about bailing out the automakers for making poor business decisions? For years the Detroit automakers have been giving in to Union demands and political pressures which has resulted in employees of the automakers industry getting unreasonable compensation packages.
The chickens have come home to roost. This was forseeable and avoidable and now the automakers want us to bail them out. Actually, what we would be doing is enabling more of the same bad business decisions that got them into this mess in the first place. Same thing with the financial institutions, which is another part of the untold rest of the story.. Automakers have become "financial institutions and have been just as guilty as the banks for making loans to subprime borrowers.
Capitalism made America the economic power that it became. Bailouts are anti- capitalism and are taking us closer to gross socialism. Because of the direction that we're headed we could become more socialist than Russia by the end of 2009.
David
passing on a great post from my dad
Bail-outs, globalism, and so-called global free trade have violated those principles and are leading to socialism and failure.
As did the democratic party initiatives and its leaders (along with many RINOs) which led directly to the credit and housing crisis.
Oddly, it is the ‘bailing out’ on our part that not only enables and perpetuates the irresponsibility, but spreads it until, like a nuclear event it reaches a critical mass where it is unable to be sustained.
Captain obvious stricks!
“For years the Detroit automakers have been giving in to Union demands”
This dates to back in the 70’s.
Contracts were negotiated by people KNOWING they wouldn’t personally be around when the end finally came. The 1976 and 1979 Contracts were the death knells, but NOBODY wanted to listen to “Those Crazy Doomsayers”.
It was far better for your carreer to give in to the union, get the line running, and take your retirement 7 years later, than it was to stand on principle.
The bill for liberal Socialism has been pushed off on to later and later generaions for the last 40+ years. Now that bill is DUE-IN-FULL, and WE are the later generation.
Jeff,
My dad has always been able to say so much with so few words.. something I have grown to appreciate very much..
David
Can you think of a government program that rewards desirable behavior?
I wish it was obvious... the problem is that there are far too many out there who just don’t get it... My dad has made the point clearly and concisely... Why is it that the left has such a hard time seeing the truth when stated so plainly and clearly..?
uh.. how bout the Army, Navy, Air Force, Marines, and Coast Guard for starters..
Bankruptcy would not mean that all auto plants close and car production ceases. Liquidating GM’s assets would make zero sense, because most of their production facilities are probably worth very little to anyone but GM. Creditors would want to maximize value, which would mean reorganizing the business to operate profitably. Chapter 11 bankruptcy would mean labor and dealer contracts would be open for renegotiation, and shareholders would lose much or all of their equity. Fundamentally reorganizing their businesses is the way to make GM and other automakers competitive again. A government bailout will ensure that fundamental change does not take place.
Bail-outs, globalism, and so-called global free trade have violated those principles and are leading to socialism and failure.
What about central banks causing recessions by raising interest rates too high? That's the most damaging market interference ever devised by man, yet it's never mentioned.
Name a gov't entitlement program that rewards desirable behavior...OR...one that does NOT reward undesirable behavior.
I can't think of one...except IRA's maybe...if considered entitlement.
Let the Big Three fail.
Maybe some other car company can buy their assets.
The good thing about the big 3 autos failing is it will be the biggest union busting success in history.
That reason alone is good for our country.
The people would re-assemble without the unions and produce a lean mean automotive company that would better reflect the ideals and goals of hardworking honest Americans!
exactly... and another great argument for saying NO to bailouts from the very beginning.. I would rather see a fast drop in the market so that it can hit rock bottom sooner than later... the fast we bottom out the faster we can begin to recover, which the American people have always been able to do..
Consider this situation as unions continue to organize healthcare workers at an alarming pace.
What is the goal of the healthcare workers unions? To raise the cost of healthcare so high that it “forces” us into National Health care?
Your dad sounds like a smart man. Always loved the named Preston too.
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