Bail out mode!!!

Months ago, when the financial system stared to collapse I commented to a friend of mine that I was hoping that the government and the fed won’t help any of the institutions in trouble.

The root of free market goes against helping these banks and any other institutions. I post in my blog, that under a free market, the market will fix it self, and whoever has to go down we should let it be. It’s a fact that under Frederic Roosevelt administration with his regulation measures and Keynes influence it delayed United States of getting out of the great depression.

Amazingly the opposite has been done since this summer, the Fed and Bush administration sent a clear message: ” they will back up any institution in trouble”, now here is the problem; if I tell a kid that they are giving candy on house#23, and he goes there and indeed are giving candy…….what’s going to happened? It won’t take that much time to see a line of kids in front of house #23 expecting to get candy too, and that exactly what’s happening now first was the financial institutions, now is the automotive industry, in part because ownership never made transition to small consumption cars, and also because unions, the automotive unions have a unrealistic retirement plan that will retire any employee of this industry with 100% of their salary, which is unsustainable e under any business model.

Once again I plea to elected Obama, and president Bush not to Bail out the automotive industry, if the let them fail, another one will come and fill that space, with a better product, the market always going to be there, a lot of jobs will be lost, but government just can’t be responsible of every industry, the government it’s just an administration of the country not a printing money institution.

2 thoughts on “Bail out mode!!!

  1. Monica Vargas says:

    I agree, if you give someone money be prepared because guess what everyone needs, especially when it comes to money. The government was created to oversee and regulate so that one person does not have all the power, it was not created to save everyone in need. The beauty of this country is that we as the people have the liberty to do what we please and if a business or a system fails it is up to the indiviual to stategize and figure out an alternative solution to better themselves.

  2. Luis says:

    I too agree we should not bail out every single industry. This is nothing more than Congress giving out industry government cheese.

    I do have a concern when it comes to the auto industry. There are too many small businesses that rely on the auto industry that will fail if the they fail. Through no fault of their own these small business are going to be wiped out because of bad management at the big three auto industries.

    Although it pains me to say this, I think we should help them out, but not with a blank check. There needs to be certain conditions that have to be met before, during and after the check has been given to them. They cannot continue the same practices that have led to their fall. They have to show us a plan on how they are going to fix themselves. We bailed them out once before back in the 80’s. We got our money back and made some profits at the same time. The same has to happen now, but again I reiterate, with conditions. No blank check.

    No more though. Enough with the bailing out (or the BS they like to say ‘rescue’) of all these industries. We are not a socialist country. Don’t let it start.

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