American Auto Bail-out? I Think Not!

U.S.Going Overboard in Bail-Outs?

I don't know if you guys heard, but the CEO of Ford (and others) called for the Gov't to make a loan of up to $50 billion to the auto industry cause they're failing! I think this is ridiculous! If you make a bad business decision, that is the risk you take when entering into a business proposition. All of this "bail-out" crap is getting out of hand. To some degree I understand, but when is enough enough? I don't buy Ford because they suck (i.e. Found On Road Dead), so why should my tax dollars subsidize them? I understand the whole saving jobs thing, but how much can we really do before people become responsible for their mistakes? I'm afraid of all of these bail-outs because it enables people to do it again. It provides the midset that goes something like this: "Well, we did it once and the government, why not again?" What stops consumers/lenders alike from making bad loans again 10, 15, or 20 years down the road if they both bank on the government bailing them out?

This is reminiscent of the failing US Steel industry. It too was failing because of international competition and called for government aid. The gov't approved funding for large steel companies so they could improve their equipment/technology, just like the Big Three automakers want gov't loans to retool old plants and save on borrowing costs. So what happened with the steel companies? Big bonuses for everyone! Woohoo! Literally, they blew all the money, didn't use it for it's given purpose of upgrading equipment, then they horribly KEPT failing (with their old equipment). Of course they wanted more money. At this point the gov't put their foot down (finally). What was the result? The merger of #1 and #2 steel producers (both foreign steel makers) in the world creating Arcelor-Mittal, the obvious ruler of the steel industry and based out of Luxembourg and London who is now the number one provider of Steel IN THE US.

What's even worse is that there was a break out of smaller steel recycling plants that were doing the major production of steel here in America and had a chance to make it. Did they get any gov't help? Of course not! The gov't only encourages failure nowadays! What not help companies that can stay alive instead of encouraging irresponsibility. I understand with some of the financial ones so the financial industry doesn't crash, but how long has the American Auto Industry known about impending growth in popular foreign vehicles? How long has Toyota, Honda, and others growth been happening? Foreign Auto makers have been providing quality, affordable, cars AND customer service for years and I consider that the American Auto industry has done nothing to improve quality. And for some reason the American Auto Industry didn't catch on until they fail and want a get-out-of-jail free card. I SAY NO! If Congress Seriously tries to pass something to help the Auto industry then WRITE YOUR CONGRESSMAN and tell them NO!! Anyways, that's my gripe for the day.