National Debt Counter

Thursday, March 5, 2009

Bankruptcy we needed

I've been reading the stories in the news today about the stock market, Citibank, AIG, GM and Chrysler. I'm not at all surprised to find that Citibank is trading at less than the cost of an ATM fee, AIG and Chrysler are barely above water and GM's auditors are saying that bankruptcy may be the only thing that can save them.

Is anyone surprised? I know I'm not. I've said all along that this would not work. I know that I and others have said that getting the government (which has yet to be able to get out of its own way) involved was only going to make the situation worse. So, here we are with the major recipients of bailout money on the verge of bankruptcy. A bankruptcy said that a great many of us said needed to happen some five months ago when we set out down this path.

However, we did achieve change. Things are decidedly changed. The difference between then and now? The difference is that now, instead of just having these businesses on the verge of bankruptcy, we and future generations are also on the hook for over a trillion dollars. The only question is, was that the change we needed?

1 comment:

S. K. Romer said...

So here's what I think. Humor me by hearing it out and then run with it if you'd like. AIG giving millions of dollars in bonuses after receiving billions in bailout money may be what we need to get this country turned around.

What's that you say? I'm crazy. I know.

Look at the news lately. Everybody wants to be the investigative reporter that shows us how these companies are wasting taxpayer bailout money. The wave of backlash is growing and the Obama administration is finding it more difficult to gain support for future bailouts. If the people don't support bailouts, they're likely not going to support any other socialist government plans that follow. See where I'm going with this one? For those of you who voted for Obama, it means if the banks keep wasting money, no more bailouts on the backs of the taxpayers. Those that need to fail will fail (of course they would have failed anyway in a long drawn-out process while bilking the fed for billions, dare I say trillions of taxpayer dollars that are years from even being collected). I digress. The quicker we finish falling, the quicker we can stand back up and dust ourselves off.

So to AIG I say, double everyone's bonus check. GM, don't forget to reward your heads of failure. Chrysler, I haven't forgotten about you. All of you with your bailout/Tarp money, waste away. Give everyone a bonus, it's the American, no no, it's the patriotic thing to do.