Wednesday, November 12, 2008

Bailing Out.


Our Government is bailing out industries and institutions left and right at the moment.These moves are all concocted to fix a problem that was created in part by the Governments own policies and social engineering agendas. Part of the problem lies at the feet of these institutions and those whose greed propelled the lack of oversight. The population as a whole was also energized by a feeling of wealth that was ethereal and convinced people to spend more than they had. Sooner or later a storm that needed not even be 'perfect' could come in and blow the thing down. As the economy shifted into higher gears we needed more people to do the hands on work and then more managers and more money movers and more of everything. All good stuff for a growth based economy for sure. But if we are basing our whole economic structure on growth it had better be sustainable and reliable. At the very foundation of our collossus were illegal immigrant workers pouring into the country at over a million a year. Everyone knew they were everywhere and yet no one wanted to slow down the train. Housing was needed to accelerate even though the migrant workers would cohabitate at 10 or more per household. So we built more, and then we needed more to build. Eventually even the illegal immigrants got in on the largesse, as we now know there are 5 million fraudulent loans to undocumented people in default at the moment. I am certain that number will continue to grow. Once the construction industry realized it had to slow down, sales were plummeting and every business connected to homes and construction and all the manufactured goods that go along started to wither. The dominoes are still knocking each other out on down the line and the American people have elected Barack Obama to fix the problem? If he starts to repair the problem by closing the border maybe we have a chance to come right back. If not we will continue to bail out most everything left.

The Democrat leadership is pressuring President George W. Bush and soon to be President Barack Obama to bail out the auto industry now. We have bailed ot Freddy and Fanny, AiG, Banks, Financial intitutions, basically money is getting thrown everywhere. The tab will end up being over 1Trillion $. The stated reasons for these bailouts are these companies are all too big to fail. So that is the secret? grow to where you are unsusutainable and then when the firm has been looted look for a handout? We can bail out businesses until there are none left, but the water will still be pouring in. Eventually they will realize its the little guys who make things work, the guys that are just the right size to fail.

1 comment:

gregcalac said...


I think the auto makers should be allowed to fall on their collective faces.

Since the end of WWII, Americans have engaged in a quiet practice of trying to bring everyone possible into the emerging middle class. Considering what occurred before the war with the depression, and then during the war with, "the actual fighting", they must have figured they deserved something better than their parents had. We even heard the adults saying things like, "I want my kids to have better than I had". This is evidence by itself that Americans were hopeful for better lives one the war was concluded.

Enter the UAW. When you have demand for a product, cheap fuel, the need for good transportation, and the movement of the working class to homes farther from their jobs, then you have the perfect situation for union organization.

As wages and benefits went up so did the cost of automobiles.

Now they've driven the cost of vehicles in America so high that it's pricing them out of the market. I suppose it wouldn't be so bad if they made more cars that actually get good mileage, but they don't and all indications are we're not interested in waiting until they do.

So, let those car giants go belly-up and take the socialistic unions along with them. I've been a union man before and they got great wages for me, but I'm over that now and I can see how difficult they can be to deal with and I say adios muchachos!