BlackPerspective.net
Discussing the Diaspora as seen through an internal Black lens
Paulson and Company Pull Bailout Bait and Switch
November 13th, 2008
I told you the bailout was a con-game, it was all just a big money grab from the get go.
Now Barack and congressional Dems want us to give them billions more for the auto industry. I let Obama slide on the bailout thing because of the position the situation put him in as a candidate; but this is too much. I’mma have to oppose the dude before he even gets into office.
But back to the financial bailout (wall street welfare package) first.
They came out and told us that we HAD TO do this bailout package because we had to get the toxic assets off the books of the banks and we had to do it NOW. They told us the sky would fall and the heavens would crumble if we didn’t do that specific plan.
I posted here at BlackPerspective.net that it was a bad plan, and we had to do something about the overall issue, but not this specific nonsense that Bush and Paulson were pushing. Some tried to say that we had to do there particular plan, but it’s utterly clear that no we didn’t; because now they’re not doing it!
The fact that Paulson was going to have almost free reign to do what he wills with 700 billion dollars, with little to no control by congress; let me know from the jump it was going to be some bull. You never put that much power and money in one persons hands and ever get anything but corruption and a rip-off. And especially not someone like Henry Paulson working for someone like George W. Bush. Did giving this guy a blank check to wage war 5 years ago still not teach people anything!??? We trusted him again!??? WHY?
We were supposed to be buying loan assets where we were told we were going to get a return on our investment; but now we’re just going to by ownership in banks (bank nationalization, nice piece of socialism from the republicans), hand money over to insurance companies like AIG, and now maybe give the auto industry a big fat welfare handout.
So the return on investment was all a lie. Again, this was always just a money grab to dole out cash to the rich. And so many people brought the scaring bru ha ha hook, line and sinker.
That’s why I said vote all the bums out But no, y’all voted almost all the same lying, thieving, jokers back in.
And fuck the American auto industry, and they’re whimpering and whining about going under. They’re full of it and then some. First, how bout they stop making an inferior, garbage product that hardly anybody wants for starters. 30 years of getting their ass whipped by Asian cars, and they can’t reverse engineer a car and figure out how to do the same thing.
GM had electric cars on the road in the 90s and junked them for no good reason, and then sat back and let Toyota take over the market, when GM was initially well out in front.
Instead of asking for tax payer money to pay for consistently terrible job at operating their business, why don’t they actually try a new business model that works. There’s a couple of novel ideals: stop doing the same ol same that doesn’t work, and as a business, actually produce a product that people want.
Who’d a thunk it! I must be a genius.
They always want government hands off of business, lazifaire. Just get out of our way. They always want us to leave them a lone and let the market fix everything; except when they want our tax dollars.
Well let the market run its course and weed out these terrible business practices and operators. Let them go into bankruptcy and allow it to be a catalyst to finally get their act together. They’re not going to close, that notion is a scare tactic. They just want free money, except it’s not free, you and I have to pay for it.
Where’s the part where the people get some help to stay in their homes, or with lowered credit card rates, or with student loan help. NOooo, none of that. It’s all just passing around money to rich people to prop them up for doing a terrible job at their profession.
Read this article about how we’re now using the bailout money to We are now rescuing other countries
posted in Politics, Socio-Economic | | | View blog reactions |
7 Responses to “Paulson and Company Pull Bailout Bait and Switch”
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Yobachi Boswell is creator and publisher of BlackPerspecitve.net. I’m a writer, activist and political watcher based in Nashville, Tennessee. I’ve also been know to do some spoken word and MCing in my day.
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I agree with what you are saying. But ultimately, I think the issues of lost jobs and local economic infrastructures must be considered as well.
If the auto industry goes under, how many towns in which the majority of the working population consists of plant workers literally get wiped off the map?
Hear what you’re saying, but that’s the growing pains of progress.
If they just consistently get bailed out we’ll be having the same discussion about the exact same things 30 years from now, just like we’re talking about the same energy problems, auto industry problems, health care problems, and banking problems that we’ve been talking about since before I was born (in some cases).
What incentive do these companies have to ever change if they know they can just run things into the ground, pay themselves off, and when they’re about to go under they can run to the government (American tax payer) and get billions of dollars to save them for a couple of more decades? They’ll use the same jobs blackmail until the whole deck of cards ultimately collapses.
I watched as a GM plant in Tarrytown, NY closed, ending employment for half the town (more or less; don’t look to me for precision.) GM had employed people for generations there and they had responded with deep loyalty, proudly directing their sons and daughters to the beneficent giant for secure employment.
Losing their careers and that sense of legacy hurt. But few languished for long. The people I knew (granted, not a demographic, just an example) soon found new jobs.
Now, instead of assuring their children that working at the plant is a good life, those hard-working families are sending their kids to college. Or, they were.
Here’s hoping, bail-out or no bail-out, this country starts making education available to everyone.
Kathleen, that’s the point I want to get at. If a bad business goes under, than that’s just the way it has to be.
People aren’t going to starve; this is not the country side of Ethiopia. You’re not going to have “hard working white Americans” with pop bellies and flies on the face. They’ll move and get new jobs.
It’s a bad situation to have towns who’s existence is based on one employer in the first place. And our national public policy cannot be based on what’s good for the minute few, over what’s good for the whole. Plus, those few will end up be suffering along with all of us in the long run if an entire industry collapses on its own weight of inefficiency and over indulgence. You’re just delaying the inevitable at the expenses of tens of millions more.
I agree with the anger and frustration about the auto industry. GM had the tech and junked it for oil-car industry lobbyist “higher” purpose: profiteering off Americans and keeping big oil happy.
However with 1 in 10 or 1 and 7 jobs tied to the automotive industry, we can not afford to let these guy go under. Automotive is the last vestige of large, heavy manufacturing (aside from the Earthmoving vehicles) we have. The entire Midwest, Michigan, is tied to the albatross that is the dying industry. (I worked for Lear Corp., a TIER 1 supplier, for 2 years as an Industrial Engr. in the mid-late 1990’s. So bias could be in my response.)
We do need revamp. Total, complete and without GM, Ford or Chrysler’s hemhawing about it. Either do it, or die. Because of international trade agreements, which we are being threaten by other countries about (http://money.cnn.com/news/newsfeeds/articles/djf500/200811140622DOWJONESDJONLINE000418_FORTUNE5.htm) it seems the auto industry could go belly up anyways. (Though I, personally, would forcefully tell the EU that they owe us for their entire continent (WWII) and therefore, better accept that we are looking out for our self-interests as well as theirs. Having the U.S. in a Depression isn’t going to help Europe either.)
Auto Service contracts on newer vehicles could be voided, no replacement parts for vehicles under 10 years old, retirees health benefits nixed, pensions cut off and a whole host of not so good things.
Michigan: suffered during the late 1970s-1984 through the worst of the recession. Unemployment was 15% total, and 25-30% African American.
You’ll notice Jennifer Granholm, Michigan’s governor, was in the background of Barack’s economic advisers recently. Meaning there is hope for the auto industry….
The Midwest needs retooling. What do you think would happen if Barack let the Midwest falter more, fall even more behind and get destroyed even worse during a recession? (Lose Votes:”I’ll never vote for an African-American again!” would be the words out of the mouths of the whites. “He wanted this to happen to us.”)
Doesn’t matter that it isn’t rational, or is nonsense to blame him for 30 years of stupid policy, but people only remember the last guy that put the nail in their economic coffin.
Read my stimulus plan. It is written as a speech after telling you where I got thinking about it…unrelated as that was to the speech written.
You make some good and interesting points Jason.
One thing though. It’s a fallacy to believe that the American auto industry is about to disappear. They’ll go into bankruptcy and reorganize, like the Airline industry. How many times was the sky falling for that industry, and all those companies are still around in one form or another (whether they merged or whatever have you)
You’re right about the votes thing, but the can has already been kicked too far down the road. If there’s not server overhaul much sooner rather than later, the whole deck of cards will eventually collapse in a worst calamity.
We need some ingenuity in solution making and not just the same old band-aid fixes of huge give always. And any money should be attached to raising fuel efficiency standards, and more hybird and electric car development. But it shouldn’t be just this blanket give away.
I took a glance at your plan the other night, and still plan to read it in detail when I get a chance.
I struggled with this one, but here goes:
1) The airline industry is far, far different from the automotive industry. Barriers to entry, a service sector versus a manufacturer, lease of planes, hangers and in essence, people vs. ownership of huge fixed assets that dwarf even the Mall of America. The list can go on, but bankruptcy for the car industry is not a neat package. (Hooters ran an airline for a minute - that should tell you everything about the ease of starting an airline.
You got some money? AND have good credit? Go get some leased planes, and a terminal lease, a naintenance crew, jet fuel, hotshot pilot(s), boring booking agent, and hot stewardesses, and you’ll be flying in no time…)
2) In fact, they (the big 3, maybe only 1) may never come out - due to contractual obligations, liquidations of assets at a % of actual value (in a deflationary economy) and the damage to the brand. You might not notice, but Toyota, Honda, Kia and other foreign brands have ramped up their marketing of products to take more market share from these failing companies…The big 3 need to reorganize and merge, and innovate, innovate, innovate, but they may be done for.
I just don’t want to hasten their demise…and you shouldn’t either.
3) There is a forest called America that is hurting very badly under an enormous debt of barren trees. ALL total we have now, and its growing, over 52.7 Trillion in debt, public and private. (I.O.U.S.A. -http://www.amazon.com/I-O-U-S-Nation-Under-Stress-Debt/dp/0470222778)
4) Warren Buffet, Barack’s unofficial financial adviser, relates a story of how China is going to take over America.
Call it: Frugalville versus Consumption City.
The story goes, Consumption City once produced things but after it grew in size and wealth and credit worthiness, it got into consumption of all things from Frugalville. Frugalville made all types of things and save its money received from Consumption City…Soon though, Consumption City no longer had actual wealth, but bought on credit, sending more and more money for those things…Eventually, since Consumption City had to pay off its debts, it went back to production, however, Frugalville now owned the means of production in Consumption City since it invested in all money received from trading with Consumption City.
This is what is happening…while we think we can think our way out of this mess, we have to start making things others want and get back our money, our wealth in America. While I want this country to be a World Citizen, I also want us to be a producer of items.
5) This is not (completely) about the BIG 3 automakers, but it is about the idea of having a manufacturing base exist still in America. We have shipped off furniture, electronics and other industries solely based on labor cost. Idiocy to believe we can just “think” and “finance” things to make money. People always want products - it is our job to do it competitively.
6) George W. Bush has destroyed our economic vitality under his watch. While these problems existed prior to his administration, no administration has reeked more havoc, across the board, as this one has. This from a Harvard MBA.
Harvard should go out of business if this is what they are still producing…