Monday, November 17, 2008

Meanwhile...Back In Washington... More Bailouts Being Discussed

$25 Billion bailout for automakers pretty much to pay their union pensions and benefits... most likely to come from the $700 billion bailout originally slated for Wall Street...

and if the automakers go into bankruptcy then all of those union contracts are pretty much null and void.

That could be a blessing in disguise.
Let'em fail.. restructure and start from scratch.
Then maybe they will have money to re-tool and build some real fuel efficient cars or (gasp) cars that don't use gasoline.

Of course if the government had refrained from meddling in the mortgage business to begin with, we probably would not be in such a huge mess... on the other hand, these businesses appear to have been so badly mismanaged and endeavored in such wasteful spending practices, that it would have come sooner or later. It seems they have been making money in spite of themselves.


Truth said...

Hello Judy,
(Off topic, but it's the only way I could figure out how to get this to you).

I mostly enjoy your blog. I wanted to make ou aware of this if you haven't already seen it-

I was recently chosen to represent CT by these folks and thought as the CT editor for BNN you would be interested in seeing it. You can also learn more about it here-

Thanks, Craig

Swylv said...

I heard an interesting debate on the radio today regarding this.
Guy A retired GM employee for the bailout because his wife has cancer and if they lose their health insurance she won't be able to get more.
guy b against the bailout but not against those receiving pensions/benefits to still be taken care of some other way.

guy a had some really good points that even I, a grown daughter of retired GM parents, didn't know:
in many other countries they have protection against other auto makers being able to sell their goods and thus taking their market away. Seems good only buy American cars! then with nafta and all GM started sending many of their assembly lines to Mexico because they could get away with barely paying those people but the contract stated that $1 per hour of labor from every employee would go into the pension fund for those already retired ... and that was not honored.

All I can say is I hope the financiers at the auto industry find some way to fix their budget deficits without hurting people.

Miss Roxie said...

I am totally torn on this whole decision of what to do. With so many types of jobs being affected by just letting them crash on their own, is it a *damned if you do* and *damned if you don't* scenario?

I pray for America.