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Bailouts Must Come with Equity AND Interest

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Hank Paulson and Bush's cronies are ripping the American people off. Just look at the bank deal cut by Gordon Brown. Banks signed deals giving much higher interest rates on the stock the UK bought in their companies.

Now, Nancy Pelosi wants to get $25 or more billion to the big three auto companies, after already loaning them $25 billion. I say make a deal that's the best deal we-the-people can get, not a sweetheart deal for the auto companies. They've blown their leverage. They've shown that their management was phenomenally incompetent.

Sure, Speaker Pelosi, let's rescue the big three. But remember that the stoc is the lowest it's been in 60 years. Do NOT allow the management that has almost killed the industry continue to run it.

Buy the big three-- outright. Extract legitimate interest rates that a responsible business would charge for companies at high risk.

Then, put together as part of this deal, some tax packages that reward consumers for buying from the big three-- buying the most energy-saving vehicles That way, the total package-- the purchase of the big three-- if not total purchase, then major equity-- and the setting up of tax incentives, will insure the future of the companies.

Bush and Paulson have already shown that it's okay for the government to take over major companies. This approach-- getting equity or total ownership AND interest has precedent already set. Tying tax breaks to supporting the investment in the companies AND in reducing our dependence upon oil should be an idea that receives bi-partisan support.


The thing we don't want to see is congress handing a gift to the failed leaders of the auto industry. That would be a terrible failure of congressional leadership.

 

Rob Kall is executive editor, publisher and site architect of OpEdNews.com, Host of the Rob Kall Bottom Up Radio Show (WNJC 1360 AM), President of Futurehealth, Inc, more...)
 

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NOTHING by WML on Wednesday, Nov 12, 2008 at 3:51:37 PM
now i see by TRADESMAN on Wednesday, Nov 12, 2008 at 7:35:05 PM
NONSENSE by WML on Thursday, Nov 13, 2008 at 5:35:44 AM
Yes, the precedent was set long ago by Paul Magill Smith on Wednesday, Nov 12, 2008 at 9:06:54 PM
Better Understanding of Money Needed by Alan Donelson on Thursday, Nov 13, 2008 at 2:56:55 AM
I'm jaded, how about you? by Steph Fauxco on Thursday, Nov 13, 2008 at 7:48:23 AM
Tainted by crime. by John Hanks on Thursday, Nov 13, 2008 at 12:04:42 PM