Auto Bailout Fails in Senate

December 12, 2008

Last night, the Senate failed to pass a modified Big 3 Auto bailout that would have provided $14 billion in bridge loans through the first quarter of 2009. The sticking point was the refusal of the unions to cut employee salary to the level of non-union employees at other auto plants in the US. Republican senators wanted an immediate pay-cut and the unions offered to cut salaries once the current contracts expired in 2011. Unless the White House acts in the next week or so, both GM and Chrysler will likely file for bankruptcy by the end of the year.

Hopefully, the White House will do nothing. Both GM and Chrysler need to enter bankruptcy. First, if the US taxpayer keeps bailing out every financial and manufacturing corporation, it will be the US that ends up bankrupt. Second, it is not the Senate’s responsibility to negotiate union contracts on behalf of auto-makers. Third, why is the Senate concentrating on union workers when these companies are bloated with over-paid management. A banckruptcy court will address salary issues across the board. It will also address useless boards of directors. Finally, it will put the risk back on the stockholders where it belongs. Investors–individuals and institutional–will be hurt. But, it’s time to understand that stock investment is not a gambling activity. Buyer beware and buyer be burned.

Finally, if a bank that will invest in a useless sub-prime loan believes that a loan to an auto manufacturer is too risky, why should the US taxpayer be the financial resource of last resort?

Your thoughts?


What’s Wrong With A Democrat?

November 11, 2008

This past campaign pointed out some of the popular misconceptions of parties that have creeped into the political landscape over the past couple of decades. Iblame it on a few–but influential-individuals who have a disproportionate amount of sway on the public. The result has been a distortion of party beliefs that do not do the parties or the country well.

To hear the Republican party in the last election, the Democrats are socialists or Marxists even though there was not a shred of evidence to those alligations. The Republicans painted Democrats as tax-and-spend even though under two Republican presidents (Reagan and Bush II) the national debt has more than quadrupled to it’s highest point since World War II. The Republicans portrayed Democrats as the party of surrender even though it was a Democrat who brought us through World War I (Wilson), Democrats who brought us through World War II (Roosevelt & Truman), and a Democrat who brought us through the Korean War (Truman). As for Viet Nam, it was a Republican that withdrew without victory (Ford), although I think he made the right decision.

Since the election, there is a run on guns because Republicans believe that Democrats are going to take away the right to bear arms. Never mind that the President-elect has said otherwise and previous Democratic presidents have made no such move.

Today Republicans contend that Democrats are going to take away our basic freedoms. Yet, it has been under a Republican president (Bush II) that imprisonment without due process, warrantless wiretaps on US citizens, and the development of terrorist watch lists without due process have all come into being.

It is the Republicans that contend the Democrats are making a concerted effort to remove God from our schools and government institutions. Yet, our Founding Fathers, in developing our Constitution did not want religion to be imposed on our citizens by government mandate. Indeed, our Pledge of Allegiance did not have the words “under God” until the Knights of Columbus–a Catholic religious group–successfully lobbied Congress in the 1950s to add the words.

Republicans contended that electing a Democrat would be bad for the economy, yet it is under a Republican president (Bush II) that the economy has taken its worse turn since the Great Depression (an event that started under another Republican–Hoover).

The scary thing about all this is that some 48% of the voting public voted Republican in this past week’s election. This means that almost half of the voting public were able to hold these conflicting beliefs and still vote Republican!

I don’t particularly fault John McCain as he is actually a fairly moderate Republican. He may not have acted the part during the election, but his record is decidedly centrist when compared to Palin or Huckabee. But there is a far-right element to the Republican party that should be alarming to any freedom-loving American. We got a taste of this belief system over the last eight years. It is insanity to vote against the Democratic candidate for the very reason of avoiding what the Republican incumbant has championed for the past eight years.

Your thoughts?