US Auto bailout next?

[davekill]

http://www.heritage.org/Research/Budget/wm2060.cfm
"Nothing gathers a crowd in Washington like the sight of money being handed out."

Stories of major US financial institutions being rescued from bankruptcy with our tax dollars in the news has been a little unsettling.

Now the 3 big US auto makers are asking for the same government favor, though they have healthy sales world wide.

Are you in favor or would this be a big mistake?

[sheldor]

Never been a fan of bailouts - sends the wrong signal to management and CEO's.  You think the DAFicit was high last year ?  Just wait.

[Geekyfanboy]

I think this is a huge mistake.. as predicted they bailed out a few companies and now everyone is going to want a bail out.

Since they are bailing out all these companies with "our" money does that make us all part owners?? :)

[Bryancd]

That's very unlikely to happen. Let's look at what is happening really in the financial services sector. JP Morgan was provided beneficial financing from the government to buy what was left of Bear Stearns. Fannie Mae and Freddie Mac have were always considered government sponsored entities (GSE's) and had the implicit backing of the US govt., so their take over was to be expected. Lehman was allowed to fail. The government has provided AIG with interim financing until they can sell off assets. In return, they are getting 70% equity in the company. That could very well turn into a windfall for the Treasury Department. Now, this Resolution Trust Concept being discussed today is similar concept to what was used back in the early '90's to bail out the S&L's and it too resulted in a windfall profit for the Treasury. I agree it's not very free market, but we potentially are facing a banking death spiral and something needs to stop it. I'm not much of an alarmist, but if you saw what i did today in the trading of some stocks, you would see that we are on a bit of a brink and can't afford the consequences of falling into this abyss. The capitalist in me hates the idea, the pragmatist in me understands. No way the Big 3 get a deal from this Fed.

[Ktrek]

I think it's a very unsettling and disturbing trend when the government starts taking control of the financial arena. After they control the finances they control the people. I think communism started out similarly. hmmm...

Kevin

[KingIsaacLinksr]

*sighs heavily*

I just say eff the government everytime they do this.  Its BS as they'll save big business, but not small business so small business and Middle class suffers.  But rich ppl YET AGAIN get away with it. 

King

[alanp]

I was furious about it.  Lets put America in more debt to reward banks that misbehaved and punish (by giving them nothing) banks that didn't.  Because an academic running the treasury is keeping our government in fear of another depression.  And while were at it, lets just print the money and subtract the value of 700 BILLION dollars from the money that is already in circulation and off set it by the bonds that will be sold to investors in China that our kids will have to pay off.  I wanted them to just change the accounting practices to thaw out the housing market.

[Jen]

In my opinion it's a large step towards socialism. Are we happy with anything Government does? I believe Government messes up almost everything it touches.  Why should we be happy that they bought up all this debt?  They just sidestepped what the majority of Americans wanted (Democrats, Republicans and Independents), to do this. I hope they haven't royally screwed up—making a year worth of hardship 10 years worth of heartache.

[Bryancd]

Wait, what are we talking about now? The TARP Bill or  auto subsidies?