Thursday, November 13, 2008

Edward Koch: We've Been Had

The bailout has been a bust:

The more I think about it, the more I believe we were had when the federal government proposed that $700 billion bailout to primarily deal with the liquidity crisis.

At the time, nobody seemed to know what to do. When Secretary of the Treasury Henry Paulson and Federal Reserve Chairman Ben Bernanke jointly proposed the bailout in an attempt to avoid a repeat of the Great Depression, nearly everyone threw up their hands and concluded there was no alternative.

His solution; CAPITALISM!:

Why not let them be bought by others in bankruptcy? There are those who say we are bailing out companies in order to prevent massive layoffs. In my view, those layoffs will come sooner or later anyhow because those companies are run by incompetents and no longer able to compete, while foreign companies like Toyota, manufacturing their cars in the U.S., are selling them and not seeking to be bailed out.

This is why we must get elect true conservatives from our party. The dems are certainly not going to fix this mess. Their solution to any problem is to throw more money at it.


TexasFred said...

I don't know WHAT the solution may be, but I damn sure know what it's NOT, and I screamed bloody hell over this bail out BS from the very start..

Maybe *We, the People* should have a voice in government.


N.S. Allen said...

First and foremost, don't conflate the bail-out of the banks with a potential bail-out for the auto industry. With the former, there was a very real possibility of a global collapse of the financial system, sans bail-out. The stakes of the latter are, while difficult to define exactly, certainly smaller than that.

Personally, at this point, I lean towards favoring an auto bail-out with heavy preconditions. Don't nationalize the industry, but require it to make some big changes, if it wants to survive. If the companies are run by incompetents, require them to sack said incompetents, if they want the money.