Bailout

[HUSKER55]

I was watching on TV this AM and a UK broker was talking and made what I thought to be some very valid points.

1. These companies ran themselves into the ground and no "outside czar" is going to fix it. If the companies own CEO's can't do it then what would make you think a government analyst could.

2. The only people who can do anything are other car companies. The vast majority of component parts are made over seas anyhow so let these companies get sold out. Will there be layoffs Yes, but no more than what is going to happen anyway.

3. If the american government bails out the auto companies then the credibility of our government comes under more scrutiny. This is going to cause a long term recesion at bare minimum.

Your thoughts?

husker55

:)

[lamboguy]

prices for horses are down in some sales 43%, that is a real haircut. the difference between the horse businesss and banks and automobile manufactures is that horse racing is in the real world while these other guys want to scalp you dry. the hell with the banks and automobile company's, let them taste failure just like i have to in the horse business. in the long run it would be better for every one. the problem we have in this world is that there are no penalties for failures.

[HUSKER55]

tHAT IS THE PROBLEM. Right there in a nut shell. People have the mistaken belief that that no one is responsible.

I email my senators everyday. Hope everyone else does also. Won't do any good but at least I can say I tried.

[RichieP]

prices for horses are down in some sales 43%, that is a real haircut. the difference between the horse businesss and banks and automobile manufactures is that horse racing is in the real world while these other guys want to scalp you dry. the hell with the banks and automobile company's, let them taste failure just like i have to in the horse business. in the long run it would be better for every one. the problem we have in this world is that there are no penalties for failures.

:ThmbUp::ThmbUp:
Once again right on the money Lambo.

[ddog]

http://mises.org/rothbard/agd.pdf

someday when you have an hour download and read this pdf.

I think it lays out a very convincing argument for the previous GD and sadly we are following that game plan to a T now.

[boxcar]

:ThmbUp::ThmbUp:
Once again right on the money Lambo.

I third that sentiment. It's spot on. And just because someone or a business fails doesn't mean that they won't learn from those mistakes and become better for the whole experience! Failing is part of life; yet so many libs want to deny this -- just like some schools now refuse to give a kid an "F" for a grade because it just isn't the compassionate and understanding thing to do. :rolleyes:

Boxcar

[riskman]

the hell with the banks and automobile company's, let them taste failure just like i have to in the horse business. in the long run it would be better for every one. the problem we have in this world is that there are no penalties for failures.

Have you noticed that the "Big Three" auto wreckers are now seeking an aggregate $34 billion - which is up 36% from the $25 billion the Big Three was seeking just two weeks ago. Every day, every week, every month it continues to be a money pit. The govt. is considering advancing them 15 billion from an existing "green" fund--but in reality they need close to 150 billion to have a shot.
The auto makers are now playing "victim" to the worst financial crisis since The Great Depression - the U.S. automakers are forgetting that their failure goes all the way back to the 70's of inept management, bad decisions and poor quality. It makes no sense to throw $34 billion at businesses that are losing $6 billion a month. Honda, Toyota and other foreighn manufacturers will fill the void and possibly buy up some of the existing plants and retain a portion of the workers. Do not be surprised if China becomes a player if assets are sold off in a bankruptcy.
How about a 75 billion dollar government plan where the taxpayer can apply for an auto grant for up to the average price for an american car with 0% financing with 10% down of the purchasers money with proper credit approval. This would keep the factories moving. If anyone is to benefit from this fiasco it should be the taxpayer---after all we or our children will have to pay it back at some point.

[HUSKER55]

Know what the real killer is? This "Car Czar" that is supposed to be "the people's watchdog" will not work and all the the money managers say so. (stock exchanges)

Yet our gov just will not learn and continues to throw money. There does not seem to be a way to say NO.

[lamboguy]

i said it gets real sick. what is happening right in front of your own eyes is that people that have worked hare their whole lives and saved hard, maybe took some major sacrifices, are getting fleeced out of their money. even if they were smart enough not to invest their money in IRA's or 401k's they are going to lose purchaseing power. your money is going to buy a whole lot less 5 years from now than it will today. they are pushing interest rates low to supposedly bail out the economy. try getting a loan, they got nine million reasons why they can't give you one. but if you want to tap your credit cards and pay 26.9% interest rates and have some type of credit you can get all you want. throw in late fees and over the limit fees and you aren't dealing with a legitamate lender, you are dealing the same way they used to deal on the street with nickie the shylock!

[Tom]

I see no difference to our security between Al Eda and our government, other than our government can do far more harm to us that Bin Laden ever could.
Time for a military coup. This government is beyond fixing.

[ezrabrooks]

I heard the term Union Busting used yesterday towards those who oppose the Bailout, and was surprised that it took so long to bring out the big guns. Once taxpayer dollars are used to save the automakers, then, the benefits like the Viagara concession at the GM Health Plan should be past history.

Ez

[magwell]

Which bank that just got bailout money, just bought a bank for 6 billion in china ?

[HUSKER55]

Tom, I think you are right