If you watched our video blog at http://www.youtube.com/watch?v=SufDCJtsckg on corporate bailouts on September 30, 2008, I warned that every industry that has a block of bad loans will be trying to get in line for the government handouts. As expected, the auto industry announced yesterday that they have a giant stack of bad car loans. They want to cut the same deal for themselves, that the troubled banks and mismanaged investment firms are about to receive from Congress – trade their bad debts for taxpayer cash.
This corporate welfare is an outrage and it will undermine the very foundation of our economic system - that people and companies are responsible for their own financial decisions. Instead, the new paradigm that appears to be developing in Congress and with both presidential candidates is – if I make money I keep it, if I lose money the American taxpayers should bail me out! Call or email your member of Congress and your Senators and tell them to vote no on bailouts, and instead to pass a bill that reflects the plan outlined on yesterday’s video blog.
A fully collateralized line of credit that is secured by virtually every asset that these firms own (not just their stack of bad debts), can provide them with the liquidity that they need which will solve this financial crisis AND also protect the American taxpayer.
IT IS TIME FOR COMMON SENSE – LET’S MAKE A DIFFERENCE!
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