I am sick and tired of hearing about all these companies who are wanting a Bailout, Rescue Bill or Bridge Loan. The big three auto makers come to mind.
For many requesting government funding, including the big 3, the basis of their ignorant argument is that, they are simply to big to fail. It would be disastrous to our national economy because they have so many vendors and business partners that could go under with them.
Granted, yes, many would perish to the economic devil of bankruptcy which is a reflection of their own poor decision making, ie….high legacy cost, poor quality, inability to compete effectively with it’s competition and lack of consumer confidence and lack of desire in their product but, what business could make money with these factors against them, just to name a few?
So, instead of proceeding with bankruptcy and restructuring so that they can come out lean, mean, fighting machines, they want to run to Uncle Sam for a Bailout, Rescue Bill or Bridge Loan, which by the way, they can’t get from a BANK because the banks are smart enough to look at them and say, “No way Jose”. This Bailout, Rescue Bill or Bridge Loan does nothing to make them restructure, it just keeps them floating so they can get through the economic storm.
Back to the argument at hand, “We are too big to fail, our failure would worsen the economic downturn the economy is going through.” Well, bah hum bug….I say. This is like putting a band aid on a compound fracture, only short of a reset….it isn’t going to work.
Now, with that being said, let’s talk about the largest part of the US economy that failed and never asked for a Bailout, Rescue Bill or Bridge Loan and that is the housing industry. I don’t remember some housing executive setting in front of a panel of Senators asking for money to help Realtors, builders, nail gun manufacturers, steel toe boot makers, office equipment retailers, and any and all other effected industries when the housing bubble busted.
No instead we got inquiry hearings as to why Fannie Mae and Freddie Mac failed. We got no relief….and, I mean no relief for struggling homeowners, we got a black eye and bad reputation for “allowing” this to happen. We are looked upon as the creator of our own demise yet, we are the largest, by far, part of this countries economy and yet, where is our Bailout, Rescue Bill or Bridge Loan? WHERE IS IT?
We didn’t get anything because we were too big to help!
So, I dare anyone to bring to me a educated argument as to why we should bailout the Big 3, or anyone else for that matter, before we start bailing out the homeowners and the housing industry. How many partner business’s failed or had to lay people off when we were struggling. Think of all the Home Builders, Home Inspectors, Home Appraisers, Home Lenders, Property Managers, Brokerages, Realtors, Plumbers, Electricians, Roofers, Construction Manufacturers, Office Supply companies and whoever else failed because we didn’t get a Bailout, Rescue Bill or Bridge Loan.
More importantly……..THINK OF ALL THE HOMEOWNERS THAT ARE STILL WAITING.
Maybe if we put all the homeowners in private jets and send them up to Washington to stay in fancy swanky hotels and then dress them up in thousand dollar suits with exotic thousand dollar brief cases, then they might be able to get a Bailout, Rescue Bill or Bridge Loan.
Like I said earlier, maybe we are just too big to help.