I could imagine the 47 million people who dont pay takes pushing their way up to the government tit to feed off it, but now here we have General Motors, Ford and Chrysler bellying up to the bar for 50 billion dollars, crying that they will go bankrupt if they dont get money from the government.
Let's see, if GM actually had products that people wanted to buy, they might be able to sell off some of their product line. Buick. Paying Tiger Woods 50 million dollars to endorse Buick. Think he actually drives one? Why not consolidate GMC and Chevy trucks, they are basically one in the same. GM could shrink and sell off everything but Chevy, Saturn and Cadillac, and be just fine.
Ford loaded up their lineup towards a heavy end on the trucks and SUV's and took a tank when gas prices skyrocketed this summer. They could sell Volvo.
Chrysler. You could sell Jeep.
Now. I don't fully blame the issues plaguing the auto makers squarely on their shoulders, but they could have done more over the past few years. The credit crisis has squeezed lending and even though the banks have received an injection of cash, they are hording the cash and not lending any money. So the bailout inflated banks coffers, allowed some banks to buyout other ones and even banks which didn't want any money, were forced to take it from the Fed. (ie, Wells Fargo and several other smaller institutions) And as a subsequent result the auto makers are no longer getting funding for cars for individuals they were 24 months ago with the cap on lending. So yes, at one aspect, the auto makers are suffering from the greedy investment bankers who bundled mortgages and lent money, 40.00 for every 1.00 in collateral while they all made outrageous profits. But overtime the auto makers also got into the act not to be outdone by the banks and created their own financial divisions and financed and leased vehicles to virtually anyone. The prosperous times would last forever. Everyone got drunk. And now everyone has the hangover and they are looking for the remedy. Does 50 billion cure a hangover?
The Big Three auto makers opposed the Bush Administration's recommendations for new CAFE standards two years ago, thinking everyone in the country would be driving a virtual Abrhams tank by 2013, and screw gas mileage. And now, because of the lack of longterm vision of these companies, the Nation must bail them out as well? Are these CEO's feet not held to the fire?
If these companies have to file bankruptcy (which I feel is unlikely, they'll get their money) where was the UAW? Where were the shareholders? Where were the dealers? Where was the leadership in these mega corporations? GM trading around 5.00 a share, Ford hovering around 2.00. I didn't agree with the bank bailout and I don't agree with this being part of that money. The government has now staked their claim of ownership in the largest financial institutions of this country, do we now wish to socialize our auto companies as well?
GM, Ford, and Chrysler pay millions to people to forecast the future and as oil prices rose in the 1st quarter of 2007, these corporations had to know what was coming. They knew plain and simple. What this 50 billion dollar bailout is about, is bridging the gap from now until 2010 when the UAW will assume the cost of workers healthcare and retirement packages. So the taxpayers will foot the bill for the unions, ain't this great America?
Rest assured, The Messiah has assembled a crack team of economic advisors, such as Gov. Jennifer Grandholm from Michigan. She knows all about how to solve a crisis. Raise taxes. Michigan had been in a recession for three years before the rest of the country caught up.
Thank you once again you 93% of single mothers and 77% of children under 28 who voted The Messiah into office. Enjoy your mandatory "volunteer" service for the nation as decree from the Messiah.
How many days after the inauguration will the National Education Association require mandatory pictures of Obama in all classrooms of public schools? Gotta love those unbiased unions huh?
