Bail Out Everyone!

November 11, 2008 at 6:11 pm (Banking Crisis)

Lots in the news lately, especially about how the 700 billion dollar bailout had tax breaks for banks snuck in to the tune of 140 billion, how the 85 billion for AIG wasn’t enough, nor the additional 38 billion, and now they need a total of 150 billion.  Save the wealthy!  The latest company to feed from the trough is American Express.   We’re no longer even pretending to spend money on solvent companies.  It’s a free-for-all for giveaway cash from the poor to the rich. 

And speaking of insolvent companies, poor GM wants the government to bail it out too.  Not because it will ever be profitable again, but because a lot of people might otherwise lose their jobs.  Suddenly GM is worried about their employees losing their jobs, after years of drawing huge executive salaries, misreporting earnings, cashing out on stock options, reducing pay, pension, and benefits for existing employees, and laying off a bunch of others.  Boohoo.  We’ve been through this before — bailing out companies that were “crucial” to the economy.  Like Amtrak in the 70s.  And that company hasn’t turned a profit since.  If GM were to die along with Ford and Chrysler, would that mean no cars would ever be made in the US again?  No.  Would it mean a new company would come along and do a better job?  Yes.  But here in the new America, failed companies aren’t allowed to fail.  And better companies aren’t allowed to materialize.

And guess what?  These ridiculous policies of ours as a nation are finally taking their toll.  First and foremost, we’ll likely lose our AAA rating.  That would spell disaster for the value of the dollar, which is the only thread left holding our economy together.  Even the government managing (confiscating) our IRAs and 401Ks a la Argentina, which is on the Democrats’ agenda, won’t help.

Today’s article of doom: Federal Reserve refuses to tell us who they gave $2 trillion of “emergency loans” to.

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