Today, the Congress declined to hand over $25 billion to financially troubled U.S. automakers - at least for now.The financial crisis began with the mortgage meltdown, and the Congress approved a $700 billion bail out.
This is unfortunate but can be justified, as the financial institutions were forced by Clinton's policies demanding that more loans be made available for unqualified applicants, and pushed Fannie and Freddie to have 50 percent of their mortgages be for low and moderate income families.
So the financial crisis we are facing today, in particular the mortgage and lending crisis, can be tied directly to the government of the late 90s, and therefore financial institutions have a good point to justify a taxpayer bailout.
There is no such justification for the carmakers. Misguided greed of the unions and Detroit executives are to blame.
Let them file bankruptcy and have courts take matters into their hands, and the carmakers will emerge stronger than ever before (see Delta: http://money.cnn.com/2007/04/30/news/companies/delta_bankruptcy/index.htm).
This is not what taxpayers money is for!
So I want you to take your kids (or grand kids) on your lap, and give them a big hug (if you don't have kids or grand kids I want you to go out and find somebody who has).
Tell them that they will have to pay for the policies of the Clinton administration, but at least they will not have to pay for the inflated salaries of UAW workers and the private jets of the automaker executives, unless of course they buy one of their cars or trucks.
While President-elect Barack Obama watches the stock market decline ever since his election, he is not doing anything to stop the decline. He could stop it by simply saying that corporations and businesses would not be the losers of his tax policies.
Instead, he is quietly and diligently working on the establishment of the third Clinton administration...
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