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Friday, December 12, 2008

The Newest Republican Gamble and the 2009 Humongous Depression

When John McCain picked Sara Palin it was a gamble, and it failed to achieve what the old soldier wanted. I think we all knew John McCain was a gambler, a risk taker, a maverick, but with all those Christian Right folk in their party, I just did not realize how willing to gamble so many Republican were, or what risk takers they have turned out to be. If the Republicans deny a loan to the carmakers and even one of those companies goes under, then their gamble will have failed, but this time it will not be one politician losing his race for power, it will be the economy of this country and, to some degree, the entire world.

I am pissed off for the following reasons:

There is an easily recognized prejudice on the part of the Republicans. They are willing to screw blue-collar workers, but allowed white-collar bankers to take billions with relatively NO strings.

I agree that the carmakers have made BIG mistakes. They carmakers made the cars that millions of Americans wanted. They should have forced us to pick from a short list of fuel-efficient vehicles. We the people must share some of the blame for the carmaker error, because Americans wanted to big ass Hummers, SUVs, and Big machismo trucks. But remember, car makers never gave out loans for cars to people who had such bad credit they couldn’t repay the loans, but our Financial industry did exactly that with sub-prim mortgages with impunity.

No one asked the Bankers how they got to their Congressional hearing.

No one asked the big wigs in the financial industry if they were going to cut bonuses and lower their salaries.

The rejection of a Auto Maker loan to save the industry is a reaction against the flaws and errors that came out of the bail out of the banking industry.

The history of loans to the auto industry is that when our government made loans to the automakers, the industry paid back the taxpayers WITH interest, and the government actually turned a profit off those loans.

We only have one President at a time, and the one we have right now has checked out, and given up. President Bush is showing shallow, reckless disregard to the urgent pressing problems facing Americans right now. The 2008 Economic fiasco may soon be the 2009 Humongous Depression problems that may not be able to coast along until Obama can be sworn in, and this is further hurts the Bush legacy that is already about as bad as any Presidential legacy in the entire history of this Nation.

I am pissed because our government focuses on money and not on people. The Credit industry needs to exist and able to function, but if the people are unemployed, if they can’t pay their home loans, and if our economy is top heavy with consumerism, and not manufacturing, then who cares if the banks have money to loan? Who will they loan it to, when the masses have no way to qualify or repay those loans?

HOPE?


It would probably be good for a couple of car companies to merge. It would probably be good if companies like GM would offer fewer products. Too many models require excessive labor and excessive advertising, and too many models fail to instill brand loyalty. Why be loyal when you have too many choices. We tend to want to try out all our choices, and when you have dozens and dozens of choices, the company never gets a generous following for a particular model.

There has been a lot of talk about how Chapter 11 bankruptcy would keep people from buying cars from the reorganizing company. Is reorganization bankruptcy any worse that what is going on now? Who wants to buy a car today if you fear the entire industry may be going under within a week or two? Chapter 11 would be better than what is going on right now. Bankruptcy is bad, but it should be looked at like a guy going to AA. If you go to AA it means you have a problem with alcohol. It also means you are doing something to address your problem. If the carmakers go Chapter 11 at least they will be using the courts to help them reorganize and restructure and that is better than what is happening right now.

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