$14 Billion and it's only a temporary fix!
By newtondak
@newtondak (3946)
United States
December 10, 2008 7:34pm CST
The terms of the bailout are intended only to keep GM and Chrysler out of bankruptcy until at least March - how much more will have to be dumped into the hands of American automakers to stabilize these companies?
http://money.cnn.com/2008/12/10/news/companies/auto_bailout_legislation/index.htm
1 person likes this
3 responses
@coffeebreak (17798)
• United States
11 Dec 08
Best I can figure all this bail out stuff out... they aren't "bailing out" anyone or anything - they are just shifting WHO OWNS the debt... like the house foreclosure thing - the govt bought up the foreclosed loans from the banks...no money went back into the economy, no new jobs creted, nothing. Only the ownership of the debt traded hands. So what? It doesn't really matter WHO owns the debt - it still can't be repaid! If there is no repayment coming from those debts, the bail out is useless. All the bail out does is clear the bank or company of all their bad debts that they foolishly made and gives those bad debts to the government and now that the banks/companys, altho clear of debt, still have no revenue and if they have no transactions to accomodate, they don't need employees...
Have you noticed the many Huge companies announcing that they will lay off thouseands of employees? Why? cause they got all their bad debts written off their books, so they don't have any "work" to be done, so they don't need employees....
Instead of giving the money to those that caused the colapse, they should have used it to hire more employees to re-write loans and things that people could afford, thus creating a finanical transaction, which creates revenue....
2 people like this
@newtondak (3946)
• United States
11 Dec 08
It doesn't appear that any of the bailouts they have already done have done anything to boost the economy. Perhaps they need to put the money at the bottom of the "food chain" instead of the top!
2 people like this
@coffeebreak (17798)
• United States
11 Dec 08
Exactly. You start at the bottom which is where everything starts and you certainly DON'T bail out those that put you in crisis in the first place! But that is all these bail outs are doing. But try to tell the head honchos that! The only "main Street" politicians and government know about these days is the one at Disneyland!
2 people like this
@newtondak (3946)
• United States
11 Dec 08
I see that the House of Representatives has passed it but it still faces opposition by Senate Republicans: http://www.foxnews.com/politics/elections/2008/12/10/b-auto-bailout-passed-face-gop-roadblocks/
1 person likes this
@GardenGerty (157485)
• United States
11 Dec 08
I know it is scary about how many things are being baled out, all at one time. Soon the government is going to have its fingers in all the pies, clear up to the elbows.
@newtondak (3946)
• United States
11 Dec 08
That's all the American taxpayers need - to have the government own a bunch of failing companies!
1 person likes this
