This week Congress will decide whether to bailout or should I say save the automakers from themselves. Between Freddie, Fannie, and AIG, Congress has perfected the art of throwing good money after bad. Henry Paulson, I believe, is a crook at the highest level. He decided not to bail out Lehman Bros. which was the catalyst that started the ball rolling. Paulson is a Goldman Sachs man through and through and since Goldman has a large stake in AIG, guess who got the handout. Right before the bailout Goldman Sachs turned into a bank so they would qualify for the TARP money.
Paulson does not owe the big 3 automakers any favors. Congress may be forced to bail them out because of the ramifications, but I believe it is time to stop all bailouts. I believe there should be a moratorium on all government spending and all bill passing until after Jan. 20th 2009.
The big 3 had 30 years to revamp their industry and build cars that met cafe standards that most of the world adheres to. For them to shift gears over night is just a tailpipe dream. It would take a good 5 years and probably 100 billion dollars to achieve this, with the companies continuing to lose billions every year. The solution is a dire one, which is make them turn the corner and straighten out their self-made problems by themselves. The most the government should do is give the automakers big tax breaks and other incentives for buying supplies within the US. and possibly give consumers a tax break for buying US made cars that conform to specific standards. In the meantime this is a no win situation, and comes at a time when most people are trying to pay the mortgage and make do with the car they have. Maybe the big 3 can start the new energy revolution by using their factories and tools to make wind, solar and geothermal components for cars, homes, factories and buildings. When will we ever learn? It may be too late. The $hit has hit the fan.