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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (44586)	11/14/2008 12:06:07 PM
From: nigel bates	Respond to of 149317

Morally, I tend to agree with you. Pragmatically, the banks will restructure and downsize anyway. Tens of thousands are already being laid off. Those without viable business plans will disappear eventually. The problem with the banks was more immediate - without action, the whole system would have collapsed. Hence the spigot of indiscriminate government money. In the case of the car industry, if it isn't forced to restructure, it probably won't, and there is a little more time to sort out a sensible plan. There are no good options here - only less bad ones.

To: stockman_scott who wrote (44586)	11/15/2008 10:45:15 AM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 149317

the problem is that with AIG, this was a hugely profitable and successful institution until this recent crisis. GM has been in trouble for 30 years. Every decade this happens. For years their product line has been weak. For years they have used their lobbies to push back on what people want. they are in bed with big oil. Asking for another 100 billion or whatever they want just to save this corrupt business model is a lot tougher to swallow than AIG. Thos AIGs and financial bailouts are supposed to be loans. With GM its a gift, and in the next recession they will be back at the trough. I just sat through the "GM product catalog" on their site and it looks like half of their models are SUVs and Large Trucks. Demand for this was already collapsing at the beginning of the decade with oil prices. But they "never forsaw" any collapse in demand?