The Failed Bailout and Why
Posted by hanson807 on December 2, 2008
Today we find one of the big 3, Ford, asking for a bail out. The question should be why? It is similar to the banking bail out failures. Why? How about we just stop for a second and ask ourselves who is in charge of the economy? Is it the government? No. They only buy so much stuff even if they do it at over priced cost. Is it the CEO’s of the large companies? Well, AIG, Meryll Lynch, Bear Stearns, and now the big 3 are going under. So they don’t control the economy. It must be more obtuse. How about this: each and every American controls his or her percentage of the economy. So we have 300 million people who control the economy. No amount of bail out will help if people feel money is tight and are reluctant to purchase a new vehicle. No bail out can take into account the consumers and whether or not they choose to buy a new vehicle. According to recent statistics, car sales of every manufactorer are down by 34%. So it will fail. So let’s just skip to the last part, save the billions of dollars and let the market decide who stays and who goes.