Accountability Free Capitalism
Where does it end?
I know that the auto-industry is “too big to fail,” but give me a break. The entire debacle was avoidable and whatever financial distress the industry is suffering from right now is 100% the fault of incompetent executives.
In other countries when bankers and businessmen fail, they are fired (or killed in China). Not here. No sir. In America it is as if the higher you get up the corporate ladder, the less accountability you can expect.
“incompetent executives”
Aren’t you being repetitive here? 😉
Now AMEX wants a handout, I mean BAILout. So begins the credit card phase.
So, if all of these “bad debts” are causing these jackholes to get bailouts on our backs, where is the equilibrium, meaning where is the massive cancelling of equivalent “bad debt” that they are getting our money to cover? Hmm????
great little piece on NPR this morning’s “Market Watch” Robert Reich essentially said they have a tool to use that doesn’t cost the taxpayer anything and can help companies “too big to fail” from failing.
IT’S FUCKING CALLED CHAPTER 11!
oh wait, that means investors lose their money…nevermind. That will never work
Exactly how long has the writing been on the wall for the auto industry? Perhaps their time would have been better spent on innovation than lobbying against fuel standards and tax breaks for Hummers.
Isn’t capitalism about creating a product people want to buy? Isn’t it about taking a chance, and if you’re right you’re rewarded, and if you’re wrong you’re punished financially? If we continue bailing out people with no vision then isn’t capitalism dead?
This is a tough one. If the auto industries go Chapter 11, they may get rid of their retirement pension and healthcare obligations. I think this is why Democrats are talking a bailout for the auto companies. I don’t want to bailout GM, Chrysler and Ford *again* but we certainly don’t want the autoworkers to suffer more than they already are. Can we just get universal healthcare already?
I agree with Pandora (#4) & UI (#5). One of my “against bailout” concerns, though, is what will any of these “Big Three” do to make this bailout truly turn them around? This bailout would address their debt burden, payroll, etc. Where is the proof that this will open up their doors to more revenue? If they can’t sell their product now, how will they avoid this same, exact problem one year from now?
I am more and more becoming solid with the point of Corporate Bailout = Cancel Consumer Debt (of that corporation)…not mortgages, though. We could never cover that bailout. Seriously, you want a bailout? Then this money pays off your consumers’ debt burden held by you.
Obama is being handed a huge pile of shit.
The teaser for Rick Jensen’s show today? “Is Obama already breaking campaign promises?”
That sounds alot like Black Man Given Nation’s Worst Job.
With the auto industry, we already know that they are not smart actors in this thing. They’ve not been good at developing or selling the kinds of cars that people want and not good at organizing themselves to be viable in the future.
GM could be bought outright right now for 2B. Bailout or Chapter 11, there will be massive downsizing and pain throughout the industry. A bailout lets the politicians look like they are trying to help. And I suspect they aren’t getting anything from it — no commitments to green those cars (not greenwash but green), or to a manufacturing operation that is greener or even signature on a piece of paper that unequivocally supports health care reforms.
The automakers are different from the banks — and I wasn’t a supporter of the bank bailout, but I get why they did it — and it is up to them to get their act together. There are plenty of cars out there to buy even if one or two of them go belly up.
Must Read on Bailouts
And now along comes General Motors. They are unique corporate citizen, demonstrating a shocking incompetence in not onw bit two separate industries. They have shown an inability to manage either a finance company (GMAC) or an automobile company (GM). And, like AMEX, they also smell blood in the water. They have already managed to west $25 billion in taxpayer monies for hybrid technology research. Do you suspect those monies would have been more efficiently spent if it went to MIT and Stanford, and to the many small innovative firms that have pioneered work in this area? Or, is the best way to generate progress in this technology to give it to a bloated, debt ridden, poorly run, dinosaur?
I feel really badly for GM workers who are certainly doing what they are supposed to be, but how long do you throw good money after bad?
I say we bail them out with a caveat that the money goes to retooling. No more bitching and moaning about how CAFE standards are killing us, blah, blah, blah. Here is the cash, in 2012 the CAFE standard changes to 45mpg. Deal?
I agree lg. We should make them take some bitter medicine with that money if we decide to do it. I guess I’m on the side of no bailout because I’m just not convinced that the auto companies will do a good job with the money.
I’m convinced that our eventual solution will be some kind of partial debt forgiveness for everyone. I think we should make it fair and offer it everyone, not just people who are struggling (through either their own greed or for circumstances they can’t control).
Obama would really do a lot to bring the naysayers onboard by putting the breaks on bailouts. Hell, I’d be one of them.
Anyone remember when we bailed out the airline industry after 9/11? Have you seen that industry improve one iota?
Big Three make crappy cars that nobody wants to buy. Give them money separately and then they’ll merge (giving them thrice as much money) and still make the same crap. Later rinse, repeat.
There should be no bail out for the auto industry unless they sign on to retooling for smaller cars and cafe standards. If we don’t bail them out there are hundreds of thousands of pensioners who wont receive their pensions. The health care part of the deal could be fixed with a universal health care plan.
AIG asking for another bailout should be told to go to hell. They had another fat cat party in Az last week.
I can see the advantage of giving auto companies a “loan” like they did Chrysler back in the day. But we almost have to bail them out because of all the ancilary services, tire manufacturers and parts people who will be on the unemployment lines. They must use that $700 bailout they already got for the bailout not in addition to more money from the taxpayers. The credit card companies should be allowed to fail…who cares about them. They have exploited our citizens for decades and both parties permitted it as they were more interested in keeping their fat cat corporate donors in check, while permitting our jobs to be sent overseas. Now India is taking more of our jobs than any other country. They shouldnt be given one job since they have refused to be signatories to the Nuclear Arms Profileration Treaties.
Below is a response to today’s News Journal editorial that argued that the solution to the Auto Industry’s problems should include slashing the $71 (sic) wages of autoworkers:
The editorial’s calculation of $71 autoworker wages (twice the true figure) suggests a lack of simple arithmetic skill comparable to its lack of vision.
Don’t bail out the tycoons who have led the auto industry to its death throes and undermined the economic security of its workers. Take the material and human assets of GM and Chrysler from their hands and convert them into to a comprehensive national energy and transportation program. The machines and the able hands are there to provide our nation with a new energy grid, a mass transportation network, and wind-power and other low carbon generators. Funds expended thus will pay off in dividends for the entire country. Indeed, anything less than a bold and visionary program will imperil our nation’s future.
And by the way, a single-payer medical plan for all Americans would do far more to improve American competitiveness than robbing our workers of their middle-class wages.