When will we stop subsidizing bankrupt companies that are no longer competitive or viable? John Tamny says time to pull the plug on GM and let it be gobbled up by more hip companies in the auto biz. I agree. Proposed bailouts are for political expediency by nanny government and NOT for the long-term good of the country. Bailouts are really bail-ins to deeper and deeper muck in the long run and are an anathema to free market principles that have made our economy strong and durable.Oh, not to be outdone by the whining auto makers, American Express is bellying up to the feeding trough. Where will the oink-fest end? Oink, Oink!
I agree completely. Probably the most damaging impact of such bailouts will on foreign capital investment in the U.S. Democrats and even moderately socialist Republicans seem bent on tilting the playing field in favor of U.S. registered corporations. That's bound to discourage potential North American investment by automakers such as China's Chery and Shanghai Automotive - or India's Tata.
ReplyDeleteDo our elected officials not understand how many American jobs have been generated by Nissan's Tennessee truck factory? by BMW's South Carolina sedan factory? by Toyota's Texas truck plant?
All good points. And the economy here in Tennessee is still vibrant. The sooner GM etc are allowed to fail, the sooner they, and their employees will be absorbed into new and more viable ventures.
ReplyDeleteI also want to agree that the Republicans have done more than their share in pointing us towards government rescues and interventions. And if Bush/Paulson can do it and set the tone, heaven only knows what the Dems will do now.
Truly scary.