Apparently my credit card bill is too big to fail.

 

I attribute this to the fact that all the financial institutions already had to go through the due diligence in the first place before the bailout package was even introduced. I think it's also a good thing that the Big 3 are having to actually submit a business plan as you do with any small business loan you get, banks aren't going to just give money away.

I agree that banks are getting free money like the $25 billion that they gave to Citi, JP, etc., but they are also buying preferred stock in those banks so I see it as an investment in the bank and not just giving money away. Also the Fed is guaranteeing assets to give confidence to the market so that IF there was a loss a % would be covered, and yes that would also be giving money away, but hopefully it will be covered on the back end in stock and interest.

I think the Big 3 need to fail, just because they fail doesn't mean they will cease to exist, look at the airlines, how many times have they filed Chapter 11 and look at how much better the unions are now that they realize these large companies older than dirt aren't their personal piggy banks.

 

The purpose of the $700b package is to unfreeze the credit markets, not bailout every company that needs help. I would expect you of all people on this board to know that, but maybe you're not as smart as I've given you credit for.

 

Too bad it's not working at all...

 

It would be easier for the Big Fn 3 to file for bankruptcy then reorganize and stop producing ridiculous road hogs read: SUV's and start making energy efficient vehicles. I don't feel sorry for them, the volt should be out in full force by now. As for Citigroup what have they done for you and me? Nothing, so why are we with our $$$$ helping? And the government is owning more and more in the private sector? Socialist America if you ask me. Democracy is a thing of the past.

 

It's a load of BS that's all it is!

 

It is, but slowly. Prudential Unit Trusts has some great charts depicting how all this happened and where we stood in October:

http://www.prudentialunittrusts.com/...20Oct%2008.pdf

 

I understand what it is for and what they are trying to avoid but letting the Big 3 go under would be counter productive to stopping the next great depression.

 

Yes, because the domestic brands are the only ones making trucks and SUV's...

Toyota Tacoma
Toyota Tundra
Toyota Rav4
Toyota FJ Cruiser
Toyota Highlander
Toyota 4Runner
Toyota Sequoia
Toyota Land Cruiser

Lexus RX
Lexus GX
Lexus LX

Honda CR-V
Honda Element
Honda Pilot
Honda Ridgeline

Acura RDX
Acura MDX

Nissan Frontier
Nissan Titan
Nissan Rogue
Nissan Murano
Nissan Xterra
Nissan Pathfinder
Nissan Armada

Infiniti EX35
Infiniti FX35
Infiniti FX50
Infiniti QX56

And those are just the Japanese "Big 3." You've still got others like Kia, Hyundai, Suzuki, etc. And you've also got all the European manufacturers like BMW, Land Rover, etc. But only America makes big, gas guzzling SUV's...

 

When Chrysler got bailed out in the 80's, those loans were paid back, with interest, early- Government made a profit-

Freaking money lenders who trade paper back and forth, at a mark-up each time, don't make a product, produce to tangible goods, just pass the cost of their actions on to others- yet the government is falling down trying to give them capital- When you have a major manufacturer who's products affect about 1/6 of the economy of this nation needing some assistance through tough financial times, the feds just sit on their hands.....

80% of the public didn't want the federal government to spend the $700 billion (now $850 B) to bail out wall street. I would bet a similar percentage wants the government to get off their collective butts and do something constructive, and, once again, they refuse to do what the public wants, but insist on doing what they think is best- for them, no doubt And people wonder why nobody respects politicians......

 

Come to think of it, bankruptcy might not be that bad an idea. The airlines went through this in the 1980's. Bankruptcy doesn't mean shut down, it means re-organize. Business and manufacturing doesn't have to stop. It nulls all existing labor and other contracts, gives temporary protection from creditors and gives a fresh start on everything. If I were in the Auto Workers union I wouldn't be very happy right now but for the survival of GM, it's an option.

 

Government got schooled on this. They pay 20 billion now. They paid Citigroup 25 billion last month. That's 45 billion dollars.

You could have bought the entire company for 27 billion last week.

I'd like to know when Starbucks is going to get bailed out.

 

If someone could have bought and run Citi it would have happened. Point is that Citi is so massively huge that no one can run it, not even the CEO, Board of Directors, much less the government. Hell the government can't even run it's own programs much less a world wide industry.

As I said before, buying stocks is a better way to protect tax payer dollars than buying toxic mortgages. Buying a mortgage is throwing away money, the mortgage is $200K and the house is worth $150K, how does that make sense? It's better to buy stocks to give the bank capital and garauntee assets so IF they default they are covered and if they don't taxpayer dollars weren't wasted.

 

In addition to this, I've observed that the media has given the big 3 some very bad press since their request for a bailout. It's unfortunate that the big 3 get slammed in the press and the general public opinion of them is not very good outside of Michigan. This is certainly not a favorable situation, especially for those in government who are interested in pleasing the masses.

 

GM should merge with Google and become Google Motors. That would change things.