Here's the situation:
A buddy of mine is having a hard time paying his bills, I want to be sure that he can stay in his house and get him self back on the right track, so I give him $70 to get him in a better situation.
Now, I have another buddy of mine who is also in a bad way and is just as important to me. He doesn't need as much, probably only $1.40, should I give him the money?
Of Course! If I was willing to give my first friend 70 bucks why would a dollar-forty be a big deal when my other friend needs some help?!
Congress approved giving the big financial companies 700 billion dollars a few months ago, that's a lot of cash. But now they are arguing over giving the big 3 auto companies 14 billion. *Still a lot of dough, but when compared to 700 billion it is very small.
Why are there so many idiots that make these decisions?!
The only difference I can see is that one decision occurred right around an election and the other is not...
Labels: automakers, bailout, government, idiots, politics, wall street
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2 comments:
As liberal as most people would consider me, I'm not a huge fan of either bailout. Especially since we've seen such little renewed confidence and resumed lending thanks to the bank buyout.
I also don't claim to understand the intricacies of it all, but it seems to me that the auto bailout is a bit different.
To use your parable, it's like a friend comes to you and says "I got involved in a scheme that seemed really solid - counting on a system that unexpectedly imploded - and now I'm too far in debt to save myself. I need help." Then another friend says "I've been making really bad financial choices and mismanaging my wealth for a long time... I've even intentionally passed up on some things that would really help me. Can I have some money?"
It's a bit different. Not saying that we should not feel a desire to help in both cases, but one seems more like a systemic economic disaster, and the other seems like some people ran their businesses into the ground. Maybe I'm mis-reading the situation.
So when does the government say enough is enough... we can't bailout everyone.
Increase the dollar amounts we're talking about. A friend asks you for $7,000 to help with his mortgage... and then another asks you for $1,400. At some point, you're going to be loaned out.
My $.02.
I'm with you that I don't like the idea of the bailouts to begin with.
But I wouldn't say the first bailout for the banks was quite as you described it. The banks knew they were giving loans to people that had no business getting them.
That has changed the way America as a whole has had to do business. And the trickle down has changed what consumers are buying. New cars are a luxury that people are not as quick to buy now. GM, Ford, and Chrysler have made poor business decisions. I am not giving them a free pass, but there would be too many American jobs lost if those companies go under.
Also, your increased dollar amount is off by about a grand, if I give 7000 to friend #1, then I would give 140 to friend #2.
I don't think anyone likes the idea of the government jumping in and sending money to private companies, but I don't see any other solution...
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