GM, Ford, Chrysler Bailout and The $700 Billion Financial Bailout

November 14, 2008 12:09 by bjones

Why is it that Government will pledge $200 billion to help Freddie Mac and Fanny Mae and another $700 billion to bail out financial institutions but they won't give $25 billion of that $700 billion to the Big Three? Also, why the hell does the government allow $700 billion to be used to help the economy and there is no clear picture of what they will be doing with it.  Everyday they are changing their strategy.  In fact, yesterday Treasury Secretary Henry Paulson said that he believes our major financial institutions have been stabalized so the money won't be going to them.  If they are stabilized then I think we should get our $700 Billion back!

Back to the Big Three bailout: the Democrats are pushing for the bailout while the Republicans are trying to stop it.  I think the reason can be summed up in one word: Union.  Democrats are very union friendly and Republicans see them as a hindrance on business.  The Republicans are saying they won't bailout an industry that isn't making any moves to help themselves.  How about giving them the money they want under the condition that the unions disappear?  Lower the salaries and the costs to build the vehicles will go down which you can pass on to the customers so your sales go up.  There was a time and place for unions but now there are Federal employeement laws that make a union unnecessary.  I bet if you added that stipulation in to the bailout the aisles would flip; Democrats would be calling foul (after all, who pays for their elections) and the Republicas would be in support.  This country isn't ready to get rid of unions so on a more realistic idea, force high MPG regulations on them.  I want to see 40 MPG gas burning cars (not unproven hybrids) by 2015.  If you can't have 50% of your cars meet that by 2015, the government loans come due in full and you will have to sell off your assets to pay it off.  No more long term loans, give them goals to meet.  If they meet the goals then everyone wins.  If they miss the goals then we aren't out of money for too long.

Frankly, I don't think we should be bailing anyone out.  We got to this place because of greed and businesses not being regulated enough.  Elected officials will never make the hard choices and never be firm enough to make this work.  Taking more of my tax dollars and giving to a car company for a car I won't buy (give me 40 MPG and we'll talk) will only delay our problems and will vaporize more money to get there.


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