I have spent the majority of this month in meeting after meeting, trying to wade through the ins & outs of this bail out and I can assure you that no body, big or small, has any clue about the regulations & payback provisions that are attached to it. We have had our experts attempt to interpret the details, outside experts, government officials, etc...nobody sees it the same way- nobody! By the end of the first quarter, the industry will probably have spent as much money studying the bail out as they will receive as a result of it.
It is a case of not so good money chasing bad money, and the conclusion will be calamity on a scale not previously experienced in history.
See, David. We can agree on something. What kills me is that The big 3 said they were to go belly up by the end of November. The Gov't said hang on. Now the say they will up close up in December. Now its The beginning of January. 1st they needed 25 billion. Then 15. Then 12. Soon it'll be 6 billion. Then price of two Escalades. ''Just give us ANYTHING!!". ''And we dont have to pay it back, right?''.
Basically they want a handout, not a hand. In that vain, they do not want to be taught to fish, they want a filet cooked and delivered.
One problem I see that would seem like a very basic thing to understand but never is, is that the line between a handout/grant and an actual loan seems to be blurred in our society. Be it credit cards or an auto bailout. These guys wanted a handout. Not a loan with a complicated payback plan. Which is what was actually needed. If all that is needed is a temporary infusion of cash in order to return to profitability, then the loan should be no big deal. If it is a big deal and there won't be enough profit to pay it back (which is the goal here) then I guess they're doomed and not a dime of tax money should be spent on them. It's just sad that the banks were given such huge amounts without near as much scrutiny. It should leave nobody to wonder who's actually running your government.
You know, I'm not a bit surprised by this. Keep in mind the big banks were handed blank checks under threats of martial law against those opposed in Congress. The automakers aren't as valuable to them and aren't running the show. They're just a basic, common evil that provides the people with jobs and unfortunately has to be dealt with. That's how they think. So the government tries to protect this bailout with so many rules and regs that nobody can interpret it. Common place I'm sure. In the end, the money will probably just be received, spent and something will go wrong. Particular rules won't be understood until they get knowingly or unknowingly broken and somebody is affected. The next 5 years could get very interesting.
Western It has not even reached the level of an old western movie " Put up your hands, this is a holdup " .
