Bailout - I am NOT a GM Employee or Union Member

[Uzzy]

Originally Posted by jman196

I was against them along with the bank bailouts/taxpayer looting, First of all there is no constitutional authority for the government to have this power. Secondly, this distorts the markets and causes further problems in the future (usually it is a bad idea to punish competence and reward incompetence). Right now there are too many cars built under too many brands. This is mismanagement at its finest. Why do we still want more cars? The correct thing to do would be to allow bad debt to be liquidated (in this case cars). Let the Big 3 downsize to an affordable level.

The market works. Cease production of vehicles that are not in demand, let all of the excess inventory liquidate at lower prices and then wait until the demand gets built up again to resume production. This is how the housing crisis should have been taken care of also.

They can't. The union (a true socialist organization) contracts don't allow GM to do those things. That is why the government had to intervene. They had to fight fire (socialism) with fire (socialism).

The market might work, but the union ignores it and always has. I'm speaking about the automakers only.

The $700 billion ($3 trillion according to some) simply given to the banks baffles me.

[jman196]

Originally Posted by Uzzy

They can't. The union (a true socialist organization) contracts don't allow GM to do those things. That is why the government had to intervene. They had to fight fire (socialism) with fire (socialism).

The market might work, but the union ignores it and always has. I'm speaking about the automakers only.

The $700 billion ($3 trillion according to some) simply given to the banks baffles me.

The Union is a socialist organization you're right, but who do you think mandates them and allows them to flourish at the expense of good management? Government mandates protect them from being scathed by any type of management. This is why job banks are allowed to continue.

The Unions are self-serving (as is the government). This bailout/loan grants more centralized control over the industry. In reality this is nationalization at its finest - it just isn't called that.

Bloomberg just got the total amount and it ended up at 8.5 trillion dollars for the banks. That was madness. A true solution lies with the marketplace. That car czar talk sounded more appropriate for Venezuela than the United States. It seems we have fallen quite a long way from the founding doctrines.

[Uzzy]

Originally Posted by jman196

The Union is a socialist organization you're right, but who do you think mandates them and allows them to flourish at the expense of good management? Government mandates protect them from being scathed by any type of management. This is why job banks are allowed to continue.

The Unions are self-serving (as is the government). This bailout/loan grants more centralized control over the industry. In reality this is nationalization at its finest - it just isn't called that.

Bloomberg just got the total amount and it ended up at 8.5 trillion dollars for the banks. That was madness. A true solution lies with the marketplace. That car czar talk sounded more appropriate for Venezuela than the United States. It seems we have fallen quite a long way from the founding doctrines.

I can't argue with your points, you're right...$8.5 Trillion...wow, just wow.