BoatBanter.com - View Single Post

BAR[_3_]

wrote:
On Thu, 13 Nov 2008 08:42:23 -0500, Eisboch wrote:

wrote in message
t...

Tough call. I don't like these bailouts, but can we afford not to? In
this country, 1 in 10 jobs are connected to the auto industry. If the
auto companies fail, we're talking depression, not recession. All of
this, could get real scary, real quick.
This may sound harsh, but I am just about convinced that we are beyond
any form of healthy avenues for recovery. The reasons are varied and
there's plenty of blame to pass around, including the consumer. At this
point though, it just doesn't matter. Assigning blame doesn't fix the
problems.

I think we may just have to bite the bullet, allow Banks, Investment
firms, GM, GMAC, Ford, Ford Motor Credit and Chrysler (whoever they are
now-a-days) to file Chapter 11 bankrupcy, reorganize and start again.
That will unfortunatly cause bankrupcies in many supporting industrys
but they are currently structured to support what exists now, not as it
should be.

Everyone is jumping on the bailout bandwagon. American Express just
filed to become a bank, thereby qualifying for some of the bailout money
to cover bad accounts. That's too much. Enough.

Like a hurricane every 100 years or so, it is going to require cleaning
out the deadwood before the forests can grow again.

Eisboch

A part of me agrees with you. The deadwood needs to be gone, but I just
can't accept the "collateral damage". If we let the companies you
mentioned fail, we are talking breadlines. One of the reasons for the
Great Depression was Hoover's hands-off approach. I don't like these
bailouts, but they may be cheaper in the long run.

Collateral damage may be what is necessary. You can't change behavior if
only some feel the pain.