Bailouts

Discussion in 'Congress' started by "b0xcar*girl*, Jun 19, 2009.

  1. "b0xcar*girl*
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    "b0xcar*girl* Member

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    Why can the government butt in deliver big car companies?????? If I had a business that folded because of bad policies, no federal agent would come knocking on my door with free handouts. Back in the olden days when a person lost all his money he just had to start all over again. Why should the money I pay to the government be used to cover somebody else's stupidity???????????

    I feel terrible for the folk who have lost jobs due to the mistakes of others, but shouldn't the "big wigs" be thinking about other folks and then themselves????? Oh, I forgot. They have private jets.
     
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  2. toomuchtime_
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    toomuchtime_ Gold Member

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    Just who do you think was bailed out? The owners of GM, the shareholders had nearly all their equity wiped out, and bondholders lost most of their money. So who was bailed out?

    The money invested in GM, went to save hundreds of thousands of jobs at GM, the distributors and dealerships and the jobs at all the suppliers that depend on GM and of all the communities that depend on these jobs. In addition, it preserved a manufacturing capacity in the US that, if GM survives, will keep much of the money Americans spend on cars and trucks within our economy instead of leaving to benefit the economies of foreign manufacturers.

    Keeping in mind that we did not "give" GM this money, but purchased a 70% interest in the company, do you think it was wrong to do all of this?
     
  3. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    The fact that GM still went into bankruptcy should be proof that bailing them out didn't work whatsoever, so I would say that it certainly was wrong to do all of that.
     
  4. Zoom-boing
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    Zoom-boing Gold Member

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    Months ago it was clear that the car companies were headed for bankruptcy. Instead of doing so on their own, they took billions from uncle. How'd that work out? Bankruptcy. Had they just done it on their own in the first place, billions would have been saved.

    If a company mismanages itself to the point of bankruptcy no government intervention should take place. They declare Chap 11 and restructure and they either survive or go down the tubes. Another company will emerge to fill the void, if the void needs filling.
     
  5. "b0xcar*girl*
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    "b0xcar*girl* Member

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    Hmmmmmm..........well........so we are saying the investors aren't worth as much as the distributors, dealerships, jobs and suppliers??????? I guess I'm glad jobs were kept (although time will tell the success on that one), but I will stick to the fact that I think my money should not have gone to save somebody else's ass, whose choices and policies I have/had no control over.

    Is equity a very secure sort of investment?????? Here today, gone *poof* tomorrow.

    I will bring to your attention that this bailout is an "if" situation. Lots of things in life are "if" situations, but I'd rather place my money in a less risky one. Say, good common sense-style ideas/decisions.

    As for the 70% interest, I'm waiting............................

     
  6. toomuchtime_
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    toomuchtime_ Gold Member

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    I agree that the Obama administration handled this badly. Obama should have encouraged GM to go into bankruptcy right away, and at the same time guaranteed buyers of GM products that the warranties would be honored and spare parts would be available, and that the government would help GM emerge from bankruptcy and reorganize. GM would have come out of the process with much lower costs than it now has and would have a much better chance of future success and the government would have to pay much less to save all of those jobs.

    Returning to the original point, who exactly is the "them" you think we bailed out?
     

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