The Auto Industry

In a capitalist society the main point is that business is privately owned.  Everyone has a chance to build up a product, sell it, and make money, but what if that product isn't as good as everyone else's.  In the case of GM, Chrysler, and Ford the business fell behind and the companies hit financial trouble because the money was misused and the product just wasn't there.  So why should we have bailed them out.

It was insulting when all of the business execs for the auto industry showed up to ask Congress for money on their private jets.  Any company that can afford to fly on a private jet can afford to make some cut backs in that department and in the salaries of their executives.  Perhaps the real money to bail out the auto industry should have been found in cutbacks.

Also technology wise American car companies are behind.  Foreign car industries have designs and are already selling lots of more energy and fuel efficient cars.  Even with our bailout money the industry have yet to show us what they are going to do to make themselves competitive in todays market.  Without a competitive edge, or even some idea of how to compete with these other car industries we can be pretty sure that our auto industry could be right back where they started in a very short amount of time.

Bailouts

The Federal Reserve is now apparently trying to create more regulations for our bankers.  Ever since the big bank bailout to save the banking industry and help our housing market the public has gotten more and more outraged at the way bankers are using their bailouts.  From over the top bonuses, to corporate jets, and simply buying each other out nothing is being used as it was intended, at least as the people thought it was intended.

Nine of the banks that had received some of the largest amounts of bailout money reported more than 5,000 employees that got over a million in bonuses.  How can an industry that requires so much help from the government be able to pass out bonus money of such magnitude?  Where is all this money coming from?  Certainly a company in so much financial trouble could not afford that.

Another great issue at this time is the risks the banks are again beginning to take with the money.  Supposedly finally getting back on their financial feet, why would they choose to continue down the path of risky investments.  Risky investments are part of what brought them to such a "financial crisis" to begin with.

http://www.youtube.com/watch?v=b8N7NBHQHW4