Bailouts

November 25, 2008

So the US Government bailed out Citibank. Add them to the long line of bailed out companies. They’re still blueing over the auto industry, but the likely outcome is more taxpayer dollars spent.

I know I’m not alone in thinking this, but has the world gone crazy?

Since when were Governments in the business of propping up failed companies?

If my business goes bankrupt next year, will the Australian Government bail me out?

I like the line from Romney on the auto industry: Chapter 11 bankruptcy is there for a reason. Why not use it.

A note of the political side: this is socialism at its worst coming from mostly the right, not the left, Australia and the UK excepted (although the UK is probably center right).

Big companies get tax breaks when times are good, but when times are bad the same taxes they avoided paying are used to prop them up.

The heads of the three US automakers flew to talks on a bailout in their private jets. Say no more.

I understand and respect the need to avoid a repeat of the Great Depression, but the message this sends to every person in small business who does it tough is beyond disgusting.

We live in strange times.

7 responses to Bailouts

  1. The car industry in Australia and probably the US is dying a slow death. Sure it provides some employment, but it is only going to be lost to China and India. Why bother fighting it? Imagine if the government put money into internet startups instead.

  2. As they have said earlier Citibank is too big to be allowed to fail. We are small fries who dont matter

  3. We can spend a trillion saving a few hundred guys who make millions, but it is not acceptable to spend a fractioni of that saving a million guys who make a fraction of Wall Street wages We can go into debt to protect a few millionaires but an industry that actually makes things, that pays workers for their productivity, just doesn't rate. Some poor schlub who happens to be in a union and wants a decent wage is unreasonable and greedy but the guy who packaged ARMs and sold absolute crap labled as gold, lets forgive him and make sure he can keep that Ferrarri.

  4. While watching the local news this evening, I made a comment to my wife that is quite similar to what you have expressed here. Where does the line end with companies expecting a bailout from the government? These certainly are strange times, and unfortunately I have a feeling we are only seeing the tip of the iceberg right now.

  5. Bail-out monies will never trickle down, give it to the public, as human beings, and it will trickle up, and fix the problem

  6. Bail-out monies will never trickle down, give it to the public, as human beings, and it will trickle up, and fix the problem

  7. Bail-out monies will never trickle down, give it to the public, as human beings, and it will trickle up, and fix the problem