The caustic fatalist, Barney Frank, threatens “disaster” if there’s no bailout for the big three auto manufacturers currently asking for considerable billions of dollars from the U.S. taxpayers; and, worse, doing so in contradiction to what the U.S. taxpayers want (which is, no bailout for these auto manufacturers (GM, Ford and Chrysler) .
And yet, today a headline blares that “Congress and the White House” continue to “seek…(a) bailout” and the possibly imaginary President, Barack Obama, is pressuring Congress (certainly Barney Frank) to reward the Auto-Industry (so-called) (but actually, the United Auto Workers Union involved in that), with billions from the taxpayers, and the taxpayer protests be damned. But Congress does not escape scrutiny and blame in this situation, since they have asserted and continue to assert manufacturing restrictions and configurations on these auto manufacturers, revisions and conditions that have contributed to much of the financial convolutions that have caused this current crises.
Thus, as long as Congress continues to demand it’s burgeoning Socialist-model for what it “feels” auto manufacturing ought to be, and continues to impose that on manufacturers, regardless of how much taxpayer money is handed over to the manufacturers, the problems continue and the financial needs will continue along with it.
The Auto people declare that the U.S. will be ruined if they “are allowed to fail” — and that declaration points out just how badly they’re failed already. Because what business does when it fails is reorganize or dissipate and organize anew under other circumstances, if there’s reason to persevere, and with revised performance and management standards and objectives reflecting gained wisdom from the previous failure.
Several of the loudest, most obnoxious promoters of taxpayer billions being handed over to the auto industry, such as Barney Frank, have declared doom and horror if their will is not complied with, while everywhere else I read that taxpayers oppose THIS bailout as also with the previous (“Wall Street”) bailout and look how that one turned out: the taxpayers suffered losses from all fronts and yet Congress persisted in insisting it was a good thing and it wasn’t. Thus, perhaps it’s time to stop the bailout madness and allow businesses to rise and fall on their own merits.
As it is now, this bailout-push is doing more to sink interest in American-made autos than any ongoing failure by the industry making them. We’re told that “no one will buy a car from a company that’s entered bankruptcy” (Virg Bernero, Mayor of Lansing, Michigan, said that yesterday during his full hour on television filled with yelling down at the American taxpayers about the idea that the Auto-manufacturers in his area may not get their billions), while what I conclude and read on the internet (throughout most public commenting) is that few will be interested any longer in buying American-made vehicles from manufacturers who required this massive billions-of-dollars-bailout inorder to make cars that are double-dipped to the taxpayers afterward.
That is, what bothers potential consumers MORE is that these Auto-people would get this massive bailout, NOT that they, instead, might declare bankruptcy and reorganize — bankruptcy is viewed by most consumers as the least offensive option for the Auto-people and would not discourage them from buying a car from the same companies, while the bailout WOULD deter further consumption.
Maybe what “Detroit” ought to do is ask Congress to buy a new Chevrolet, Ford or otherwise for every taxpayer in the U.S. At least there’d be a receipt for the bailout in the driveway afterward. Any which way it developes, however, the taxpayers are hosed again.