Auto Bailout Nightmare

Posted by Tom Blue on November 19, 2008 under Uncategorized | Be the First to Comment

Yesterday I watched the Automobile Bailout hearings on C-SPAN.  It was interesting and frustrating at the same time.  I am completely for the use of government funds to stimulate the economy, but I am definitely drawing the line with an automaker bailout.  Their failure is not our fault.  Toyota and Honda are still making money.  Why can’t you?  In addition, this $25B would be more beneficial to the U.S. economy if we had a tax cut to citizens or a clean energy stimulus plan.  Giving money to dying businesses is not a logical move.

By far the most frustrating out of the top 3 us automakers is General Motors.  In the past 12 months they have lost $22B yet they say they need $10B to get things back on track. Yesterday, Tenn Senator Bob Corker asked all of the automakers, “Will you make the pledge to us that you will not be back for more money if you get the $25B?” GM’s Richard Wagoner responded, “well if you could make a pledge to us that the US economy will turnaround at a certain time and the financial markets will rejuvenate. Then we would be glad based on that data to come back to give you our exact best estimate of how much financing we think we need.”  The worst part about is that he feels that he deserves the money… like the U.S. government owes GM.