Originally Posted by NapRover
Bailouts are unconstitutional in my humble opinion. There should never be another one ever. It's sink or swim.
I think W was spooked that the world was going to collapse if he didn't listen to the gurus. We should have let every one of those darn companies go belly up and move on.
Of cousre we should have let those businesses go belly up...
The problem with the present state of 24 hour news and instant media is that we all look at every issue in a micro way and miss the forest for the trees... we don't want individuals to lose their individual jobs and instead we make decisions that in the long run will hurt them AND everyone else more!
If you have 5 auto manufacturers and they are all struggling... and one goes belly up... you are left with 4 stronger auto manufacturers...
the 5 were over extended and the market simply couldn't support them
by pumping money into the market in the short term you keep those 5 companies open... but ultimately unhealthy... once you stop with the funds they will once again struggle... it's market economy 101 folks
so yes... some folks would have lost their jobs in the short term... that's going to happen anyway as soon as we realize we can't keep pumping tax dollars in year after year... BUT most of those jobs would have been added to other companies as they soaked up the market of the one that left
the danger with this approach is we don't FIX what is wrong... and by the time we do we run the danger of losing even more market share to companies over seas
It's hard to watch individuals lose their jobs... but if you interfere with the market once... you either keep doing it FOREVER... or they lose those jobs when you stop... simple as that
Meanwhile the entire industry in the US is weak and vulnerable to over season competitors with zero chance at expanding to new markets like China and India...
short term gain
major long term loss
BTW - the banks were a different story... we unfortunatley made that bed in the 1980s and 1990s... we're stuck barrelling towards that waterfall!