In watching what could easily be considered a three-ring circus weren’t the implications so dire, the latest push for access to bailout billions has commenced. GM, Ford, and Chrysler executives piled into the most fuel efficient models in their fleet to begin a second pilgrimage to Washington DC. The move to hybrids which was somewhat humorous was brought on after Big Car execs were chastised by members of Congress for the use of private jets and also for a lack of candor about past mistakes. At stake, at least according to the execs, is the future of the US auto industry.
The tactic, at least on the surface, sounds awfully familiar. We were told just a little over two months ago that if a bank bailout plan wasn’t passed immediately that the entire financial system would implode. Sure we haven’t seen financial Armageddon yet, but you sure wouldn’t know it by looking at the retirement accounts of most Americans. Amazingly, $700 billion of bailout money and subsequent trillions in Federal Reserve loans found their way to Wall Street banks, but it seems like you’d have to travel pretty far to find a penny that hit Main Street.
Now we are assured that a Depression will ensue if Big Car is allowed to fail. While this is not the forum to nitpick over which failure would be more catastrophic, it would seem that given the relative importance of the productive base in a properly functioning economy that Big Car is infinitely more important than Big Bank. Congress, on the other hand, seems to feel the opposite.
So really, what gives?
full article here: http://www.my2centsonline.com/issues/mtc_2008/mtc_12052008.php
The tactic, at least on the surface, sounds awfully familiar. We were told just a little over two months ago that if a bank bailout plan wasn’t passed immediately that the entire financial system would implode. Sure we haven’t seen financial Armageddon yet, but you sure wouldn’t know it by looking at the retirement accounts of most Americans. Amazingly, $700 billion of bailout money and subsequent trillions in Federal Reserve loans found their way to Wall Street banks, but it seems like you’d have to travel pretty far to find a penny that hit Main Street.
Now we are assured that a Depression will ensue if Big Car is allowed to fail. While this is not the forum to nitpick over which failure would be more catastrophic, it would seem that given the relative importance of the productive base in a properly functioning economy that Big Car is infinitely more important than Big Bank. Congress, on the other hand, seems to feel the opposite.
So really, what gives?
full article here: http://www.my2centsonline.com/issues/mtc_2008/mtc_12052008.php
