A quote harvested from Wired.com...
How about telling the president to let bad companies fail? If you reward failure with bailouts, you punish honest companies and reward recklessness.
The big three car makers came to Washington recently, in their nice private jets and looking for a handout. There has been more than a few mentions of institutions "too big to fail", suggesting that the cost of a bailout would be less than the impact of failure... or worse, that larger negative economic consequences would result.
This is a reflection of a system run amok, of course. Our government is supposed to address the needs of its citizens and has instead largely taken care of itself and corporate America. They are supposed to be addressing our sustainability, but they have become as short-term as a day trader.
The "Big Three" automakers, saddled by an inability to escape UAW labor costs and by their own inability to manage, are the creators of their own demise. The Union labor is ultimately a monopoly abusing its host, holding automakers hostage in a world of decreased labor costs and global competition. This is not a case of unions securing safe working conditions and a reasonable wage... it is abuse of power. And the automakers have pursued a delusion that we(the market) asked them to produce their questionable products; Though there has been a steady transition to foreign cars for some time.[Toyota stands out, of course]
Also - maybe letting the automakers go Chapter 11 - might be a way to renegotiate UAW into non-existence - Sounds good to me; And I would consider looking at most union situations with a critical eye. Unions have a purpose, but market distortion is not it. $70 an hour for a borderline skillset is largely a path to business burial.]
The auto industry will not fail automatically because these manufacturers do. There will still be a need for repairs, parts, gas, and so on. We will simply live without the fools.
The gas rationing of the 1970s should have been a hint of what might return. With real recognition of global warming, ecological concerns, and obvious energy dependence spanning more than a decade... this was an obvious future. [And if you think $4 a gallon will not return soon, you are in a dreamworld.]
Essentially, most everyone(the consumer included) collectively held their heads in the sand. We chose consumerist gluttony where more and better trumped any real recognition of priorities or needs (versus wants)... credit scores, good citizenship, and logic be damned. We just kept writing checks.
Systemic government corruption, corporate greed, short term focus, selfishness, intentional distortions and spin, and a need to squeeze more blood from the shriveling pie.... have left our infrastructure in sad shape, our ability to move forward in peril, and may ultimately drop our country back to a point of true hunger - versus gluttony. We have to produce again - we have to become the economic powerhouse we can be... and we have to start being honest with ourselves and responsible for our actions again.
Bailout money for AIG becoming executive bonuses... are you kidding me? Down at the bottom - where we the consumer live - we the citizens - we expect pay for performance. CEOs, politicians, lobbyists, their friends, and their children should not get to profit as they create our doom. Let us please quit prolonging the house of cards we have built. Any business turnaround expert will tell you that taking fresh blood will make those remaining take notice; Let some heads roll. Let’s not keep propping up poor behavior. I do think America is more than ready to see a few millionaires and crap institutions drop away and many others humbled; I bet the markets would react well also.
Let truth and justice prevail.
This is a reflection of a system run amok, of course. Our government is supposed to address the needs of its citizens and has instead largely taken care of itself and corporate America. They are supposed to be addressing our sustainability, but they have become as short-term as a day trader.
The "Big Three" automakers, saddled by an inability to escape UAW labor costs and by their own inability to manage, are the creators of their own demise. The Union labor is ultimately a monopoly abusing its host, holding automakers hostage in a world of decreased labor costs and global competition. This is not a case of unions securing safe working conditions and a reasonable wage... it is abuse of power. And the automakers have pursued a delusion that we(the market) asked them to produce their questionable products; Though there has been a steady transition to foreign cars for some time.[Toyota stands out, of course]
Also - maybe letting the automakers go Chapter 11 - might be a way to renegotiate UAW into non-existence - Sounds good to me; And I would consider looking at most union situations with a critical eye. Unions have a purpose, but market distortion is not it. $70 an hour for a borderline skillset is largely a path to business burial.]
The auto industry will not fail automatically because these manufacturers do. There will still be a need for repairs, parts, gas, and so on. We will simply live without the fools.
The gas rationing of the 1970s should have been a hint of what might return. With real recognition of global warming, ecological concerns, and obvious energy dependence spanning more than a decade... this was an obvious future. [And if you think $4 a gallon will not return soon, you are in a dreamworld.]
Essentially, most everyone(the consumer included) collectively held their heads in the sand. We chose consumerist gluttony where more and better trumped any real recognition of priorities or needs (versus wants)... credit scores, good citizenship, and logic be damned. We just kept writing checks.
Systemic government corruption, corporate greed, short term focus, selfishness, intentional distortions and spin, and a need to squeeze more blood from the shriveling pie.... have left our infrastructure in sad shape, our ability to move forward in peril, and may ultimately drop our country back to a point of true hunger - versus gluttony. We have to produce again - we have to become the economic powerhouse we can be... and we have to start being honest with ourselves and responsible for our actions again.
Bailout money for AIG becoming executive bonuses... are you kidding me? Down at the bottom - where we the consumer live - we the citizens - we expect pay for performance. CEOs, politicians, lobbyists, their friends, and their children should not get to profit as they create our doom. Let us please quit prolonging the house of cards we have built. Any business turnaround expert will tell you that taking fresh blood will make those remaining take notice; Let some heads roll. Let’s not keep propping up poor behavior. I do think America is more than ready to see a few millionaires and crap institutions drop away and many others humbled; I bet the markets would react well also.
Let truth and justice prevail.
