GM, Banks & "Too Big to let Fail"

[Patrick H. Crowe]

GM has been so badly mismanaged by fools so arrogant as to fly to DC in private jets and ask the taxpayers to bail them out. What?

The pusillanimous congress bought the BS. Some said "Too big to let fail". Asked to explain that they mentioned "ramifications", lost jobs, bankrupt suppliers - - on and on.

Some blamed the unions: Huh? What? Management signed those contracts didn't they? Who can blame labor for asking for raises?

Of course a GM failure would mean there are lost jobs, hurt suppliers and other ramifications but wait a minute.

If my car washes had been badly managed I'd have been belly up. My suppliers would have lost the business, my employees out of jobs - - same tune just smaller scale, right.

With GM gone their competitors will sell more cars. The shrewd well managed suppliers will sell to their survivors. The talented employees will go to work for them.

The grossly arrogant and incompetent mamagement of GM will get what they earned, merited and deserve. Taxpayers will say: We'll never rewad these incompetent fools who were so arrogant as to fly to DC on jets, "tin cup in hand".

Doesn't that fit common sense? Now to the banks.

continued

 

[Patrick H. Crowe]

The banks made zero down loans to unqualified buyers at sub prime adjustable rates on houses falsely appraised. Why? They knew that the taxpayers would bail them out if the bubble burst and the illegality was exposed.

It seems to me these folks, like Madoff need to face the judge. That activity was not just greedy it was worse. RR saw what happened when the S & L's were deregulated - - complete disaster. Here we go again. But wait.

It's not the depositors who will get hit, only the tiny percentage with deposits over 250K. What will happen is that the stock holders, who knew or should have known of the risks, will lose thier investment, as wll they should.

Now these folks tell me: "You don't know how complex this situation is". Yes I do, don't patronize me. Here we go again with "ramifications". Once again I am insulted. I refuse to reward greed implemented through either design or gross incompetence.

Take a long look at these folks for illegal activities. Meantime let the chips fall where they may. The remaining assets will be sold at auction. Well managed community banks will buy them up for pennies on the dollar.

The forclosed houses will sell at auction and many folks well get bargains.

But to ask taxpayers to bail them out? Insanity!

Patrick H. Crowe

Free enterprise reigns.

 

[DavidM]

That is an set of opinions I can agree with completely. I would rather see the banks and automakers fail than borrow more money from the future to pay for the present. Even if (a gigantic IF) the government's plan would work (short term) our children will be hindered by even more significant debt.
We are only delaying and burying our problems, not solving them.

 

[cebo]

Pat,

why are you running from the left to common sense? Seems most of your party is rallying to do the opposite you espouse. BTW did we not settle the fact that the feds via fannie & freddie caused the mortage meltdown.

cebo

 

[Patrick H. Crowe]

Dear Cebo:

I have often made clear (been ignored?) that I am far to the right of "W" on many items, by that I mean I am far more conservative than he is, far, far more. Try the national debt! Try the balanced budget! Try immigration policy!

This man was a tax and spend liberal if I ever saw one. The exception was that the man forgot about the tax part. War without asking taxpayers to sacrifice? He told us to "go shopping". Never happened before.

Please kind sir, you must be as happy as I am to see the man out of office, right?

Patrick H. Crowe