Congress Bails Out Banks, Now Car Makers, Taxpayers Left Holding The Bill [Jane, Stop This Crazy Thing!]
House Speaker Nancy Pelosi is now calling for "emergency and limited financial assistance" for the auto industry, to be completed within days in a post election session of Congress. So first it was banks, and then investment companies who decided they wanted to be banks so they wouldn't fall, taking loans from the Fed and then using that money to buy out other banks while not loaning anyone money, which is what was suppose to have been done with the loans. Credit card companies such as American Express have decided to become "banks" so they can access the Fed loans and stay in business. And the Fed says that they aren't going to tell us how the $2 trillion black hole money is being used. Bloomberg has filed a Freedom of Information Act and a Federal law suit just to get the information.
Now Pelosi says that we as a nation must bail out a carmaker? In a written statement, Pelosi said the aid was needed "in order to prevent the failure of one or more of the major American automobile manufacturers, which would have a devastating impact on our economy, particularly on the men and women who work in that industry." "Congress and the Bush administration must take immediate action," she added.
Congress has already passed legislation providing for $25 billion in government-backed loans to the automakers to prod them to retool their factories to make more efficient vehicles. The more efficient vehicles are not necessarily vehicles that will get more gas mileage, but vehicles that will conform with new, and extremely stringent air quality standards, basically those that will pass California's extremely strict CARB emissions policy by the year 2010.
But like AIG, the auto makers said that wasn't enough, we want more. Auto execs and officials in the United Autoworkers union have called for more than the $25 billion to avert a collapse of the auto maker industry, including $50 million more to help cover future health care payments for about 780,000 retirees and their dependents. My opinion is too bad. That's a contract between the auto makers and the union. If the auto makers can't pay up, that's their bad business, not mine. Make sure that 780,000 union retirees have health care insurance when over 1 million people have lost their jobs this year... yea.......
So, one small question for Pelosi; you bail out the banks and investment companies, now you bail out the auto makers. And now you are going to bow down and give the auto makers money just so that they can cover their commitments to retirees on health care while the rest of the nation has no health care? Lets give the automakers money that has nothing to do with stimulating the economy. And this is while states are running out of money for health care? And why people like me, who have no health care are going deeper and deeper into debt that I will probably never be able to pay, and can not get the health care I need to become a productive citizen of society again to pay off those bills. And as for banks, umm.. if no one has any money, then where are the banks going to get money for capital? There's going to be a million nationalized banks, but their deposits are going to be nill.
As what is starting to be usual Pelosi, bail out businesses, leave the taxpayers paying for the next 50 years, and leave taxpayers homeless and broke isn't going to work.
And for once, Im going to agree with a statement that Obama has said *GASP*. Currently Congress is looking to "fix" things from the top down by giving all these banks and corporations loans to carry them over until the economy stabilizes. The only way the economy is going to stabilize is when we, the consumers, have money to spend, thus staring at the bottom. If we have no money to spend, then there isn't going to be any money in the banks, and there isn't going to be any consumer spending. It gets us nowhere except for us, the taxpayers left holding the bill to pay for something that isn't working. And if we have no jobs, then we pay no taxes, and thus all these bailout bills won't get paid off. And if we have no jobs, then we don't buy anything, and companies and banks make no money, how are they going to pay off their loans?
Round and round we go, on the merry-go-round to poverty. "Jane, stop this crazy thing..... "