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Bailout or Bankruptcy, Reality or Threat?

December 19, 2008

As we head to the Christmas holiday, the question still looms. Will it be more cost effective to Bailout the “Big 3” or let them go under? It is a good guess that if they go under they will crush what is left of this floundering economy. However, if they get bailed out they will be back for more in the all too near future

The latest news is that Ford and GM will take the low interest loans from the Government. However, if we let the Big 3 go down will it cost the country more than if we bail them out. I really don’t have the answer to that. What we have to look at is the cost of a bankruptcy. If they file for bankruptcy, they are relieved of there financial responsibilities, which means, we the tax payers will pick up the cost of Warrantees of cars already sold at that time. Also, we the tax payer will pick up the cost of pension packages of those already in retirement. Then we will have to deal those hundreds of thousands that lose their jobs.

Now, let’s say that they take the bankruptcy route and the tax payers pick up these cost. As I stated above we will be left with, pensions, warrantees, and other miscellaneous costs that will also go into the billions, and more likely trillions. On the other hand if they get bailed out, we the tax payer will end up paying much more on the hope that something that has been failing for over a decade will regain strength. Under this plan the companies have said that they will be laying off workers also. The republicans that went against the proposed bailout plan, have said it does not go deep enough. By that they meant among other thinks was, not enough works would be let go. As I see it, either way this goes, does not look economically feasible for the tax payer.

Personally

We are headed to a point in this nations soon to be history, when we have to bite the, “Preverbal Bullet”, letting it fail and rebuild from scratch. We are going to have to do away with the “Free-market System” as it is being called, (however, is resembling a Fascist State more everyday.) and rebuild as a Capital-Social economy. An economy in which the people have more of a say and the local governments have control over their resources, and utilities. What we are witnessing at this point in time is socialism for the corporations, that is not benefiting the people.

In the plan laid on the table today by the Bush administration, the “Big 3” will receive low interest loans that will be paid back only if the Company/Companies show profit. (Now there is a deal we all would like to have.) It will end up being as good, if not better than what the financial institutes received. This will be a lose/lose deal for the American People.

I realize, that most of us don’t understand the whole of finance, but you don’t have to be a Rocket Scientist to know this sucks, and is not in our best interest.

ABA

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3 Comments leave one →
  1. April 19, 2009 11:57 pm

    Thanks for the tips. Good points to be thinking about!

    Like

  2. centurean2 permalink
    December 19, 2008 5:57 pm

    An elderly gentleman when young a code breaker in the war.
    100% worth a listen!
    Fabians mentioned but he seems unaware the hold they have here,yet he mentions the hold they have in the USA.
    The filth started here and thrive under various names;common purpose inc.

    http://video.google.com/videoplay?docid=-5077403293906734610&hl=en

    Like

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  1. Make no Mistake Our Members of Parliament and The Met Police Are also Corporations- Not what they appear or say at all! « Centurean2’s Weblog

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