Wednesday, December 03, 2008

Where's My Bailout?

The "Big 3" US auto makers (who are the business equivalent of your neighbor's heroin junkie brother in law) got turned down when they flew to Washington in their private jets and asked for $25 Billion so they can keep making cars that nobody wants. So they did the logical thing, they went home and came back asking for $34 Billion. Wow. Just. Wow.

I think I'm going to walk into my bosses' office right now and ask for a 20% raise. If he doesn't give it to me, I'll come back in a few days and ask for a 35% raise, because that's how the world works, right?

Before anyone brings up the topic of the Wall Street Bailout, let me say this:

1). There's a chance we might get some of that Wall Street money back. Does anyone in their right mind think we will get one dime of this Detroit Auto money back?

2). Banks are necessary because EVERYONE, including auto companies, need banks to do business. No one NEEDS General Motors (especially when you can buy a US made Honda or Toyota).

3). GM's problems (expensive labor contracts, too many dealers, too many car brands) can't be fixed by giving them money, they can be fixed with bankruptcy reorganization though.

GM spends almost a billion dollars a year on it's "Job Bank". If you don't know what that is, it's where the laid off union employees go for eight hours a day and do crossword puzzles while collecting their full salary. Some of them have been there for over a decade. And we, the taxpayers, are supposed to pay for that to continue? Eff you!!!

*EDIT*

You Tell 'Em Ron Paul

4 comments:

zandria said...

I have to agree, the whole thing does seem pretty shady.

Jamie said...

Generally I agree. Though the idea that we might get some of that Wall Street money back, implies that we ever had money in the first place. The price of everything that is traded - stocks, commodities, real estate - is driven my speculation. Our entire economy has been based, for some time now, on speculation. The price of everything has been driven not by real demand, but on predictions of demand, and on predictions of predictions of demand...

Unfortunately we all bought into it the same way, hence our 401Ks are worth half what they used to be. But they should be, frankly, because they were never really worth that much in the first place.

So... given that the entire American economy, which now produces very little other than bogus patents and consultants, is entirely based on predictions of future value, what will a "bailout" accomplish?

It will simply put another finger in the dam that is going to burst sooner or later. The money's not real, it never was, so we might as well let the dam burst and get it over with.

Anyway, at the end of the day the problem with the US auto industry is they make shitty cars. Frankly, that 35B would be better spent investing in a new startup car company that isn't burdened by the problems that plague Detroit. But since that's not very PC, if we do spend this money it better damn well come with a requirement that average fuel economy and quality go WAY up in a very short time period, like a year or two. Otherwise, we're just spending money on keeping a brain-dead patient alive.

StuccoHouse said...

Agreed.

Draffish said...

A little too "nudge nudge wink wink, know what I mean?" know what I mean?