Should the government bail out every major failing business in America?
What do you believe is the reason for all this failure in our economy?
Do you think that the world is merely rearranging the order of what's important?
My personal feeling about the economy is that we have relied for much too long on money that wasn't ours, we have taken out loans, used charge cards, and spent, spent, spent without regard to what would happen when it was time to pay. This goes for businesses the same as individual circumstances.
I don't think we can responsibly bail out all these businesses. We can't continue to spend so carelessly and leave the financial mess for future generations. Most businesses have operated with tremendous amounts of fat and that fat has to be trimmed/cut out.
I don't need a big luxury vehicle that gets poor mileage, I need transportation that gives me awesome mileage. It doesn't matter if fuel is $1 a gallon or $5 a gallon, we should have never wasted fuel just because it was cheap and plentiful.
Doesn't it piss you off that the executives of these failing businesses have collected 10's of millions and sometimes hundreds of millions of dollars in bonuses while they ran these businesses and your life savings into the ground?
Does it piss you off that employees of car makers could purchase their vehicles cheaper than you the consumer could purchase them? Did you know that some of the car makers employees made $60-75 an hour and they got discounts you couldn't get?
What's next, what is the next major failure in our economy?
I would love to hear what you have to say about the state of our economy.
Friday, December 12, 2008
What's Happening to the Economy?
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19 comments:
I tell you what is wrong with economy. Besides the points you are raising, the main problem is that the economy was to long in hands of people walking around in their Alpaga suits, sitting in lavish offices on the top floor of their corporate buildings, have no idea what is going on in their company, worry only about shareholder's value and the big fat bonus they will get at the end of the year. After having had a big salary intake throughout the year.
Because of such management, we lost many prestigious companies in Switzerland. Former industrial giants have become now small outfits. Many others simply don't exist anymore.
And one of the biggest Swiss banks (UBS), and very big worldwide, needed also Government money so as not to go down the drain.
And bankers should know about economy? But then, they were probably to busy managing their bonuses.
Hon, I could go on for days...
If you compare our generations to our parents' generations you'll see the difference. We just have too much freaking stuff!
The generations before ours, not everyone had homes (gee, if you couldn't afford one you didn't buy one -- novel idea!)...same with cars and other stuff...
And retail therapy? It didn't happen.
It's modern-day greed. We keep wanting MORE... and get beyond our means...
Think about how many people on assistance that have fancy SUVs, state of the art cell phones (those cost $$!), etc. AND THEY CANiT AFFORD IT ALL...But they get the check. And those living the suburban nightmare that can't afford it (the cars, big perfect house, vacation home, perfect kids, designer clothes, and all) and charging groceries because they have no money...
Hubby and I do our darndest to live within our means. Now I'm not saying we're perfect, but we're much better off than most folks. We have no credit card debt and smaller than average mortgage debt. NO fancy clothes...no fancy cell phones, etc. If I can't make ends meet, I do without... Gee, another novel idea...
And let me tell ya, it's a vicious cycle. And it scares the bujeebus outta me.
Me? I say no bailouts. You reap what you sow...that's the idea of a free market.
(Sorry for the rant, but I'm quite passionate about this -- I'm really a nice person! Honest!)
I could go on forever on this topic, but the short answer is that we - top to bottom and bottom to top - have been doing it wrong. The housing loan crisis was a prime example of people who don't deserve loans getting them anyway without understanding what they were signing up for with shady interest rate schemes and the lenders lending when they should not have been. In any case, I hope we'll see things get better and will learn our lesson. I'm allowed to hope. :)
I am with you 100%, MamaFlo! We reap what we sew! It's time to pay the piper! And so forth!
I see that the US is now going down the same route as Britain by trying to bail out the car industry. Sadly, we saw ours collapse time after time again - the main reason occurring because you cannot depend on the population of any country to purchase goods that are from that country. (Probably with the exception of France - as the French are noted for their loyalty when it comes to purchasing French goods. Elsewhere in the world people have a tendency to go with the cheapest and that's where the dilemma first starts. Do you shop within your means or do you pay a little more and purchase a product made in your land?)
Of course, greed also plays its part. Everyone wants to earn more and have longer holidays and bigger bonuses and larger pension schemes.
We all want - every one of us - no matter how good our lives are we want and strive for more and so now we know what happens when we are never satisfied ... the bubble bursts and everyone, save but a few in very lofty positions, suffers.
All we can hope for now is that those who have had the best education, those who have had experience in knowing how to juggle a country's finances know how to fix it. All we can do is second guess ... we look at the plans that have been laid down to save our various countries and we hope that those who say they know how to fix it really do know what they are talking about and have the 'magic' answers!
I am very opposed to bailing out the big three. Let them file bankruptcy. Then they can reorganize or go under. You didn't mention the UAW and they are the biggest piece in this mix. There would have already been a bail-out if it wasn't for their greed. They aren't going to take a cut in pay to help their employers out of the mess they are in.
Also, have you ever looked in the parking lots where the employees park? Guess what cars they are driving? Toyota's, Honda's etc. Wonder why that is? Could it be the reason you cited? I think so.
We need the banks, but we don't need the big three. I would love to see that union dissolve. I would throw a party. Then we could start working on dissolving the one here in California that is sucking the very life out of everything it touches.
Yout point about mismanagement can't go unnoticed either. It seemed no matter what these CEOs did it was okay and they got the big bucks and bonuses. When I was working you produced or you didn't have a job. Plain and simple.
Greed seems to be the word of choice in the workplace today. Let all these greedy folks taste what they have created. I hear they are always hiring at McDonalds, Burger King and the like.
I too am passionate about this. WE NEED TO QUIT REWARDING POOR PERFORMANCE! When the CEOs flew down to Washington DC (the first time) in three separate private jets to beg for money I went ballistic.
Excellent post honey. Have a great weekend. Big hug. :)
I remember going to Vegas and seeing young adults dressed to the nines gambling, and partying and wondering how they could afford to do it. I wondered if they were saving for a rainy day or retirement. I wondered if their college loans were paid off and wondered if this Glamorous Life was merely on plastic, I'm thinking it probably was.
We didn't live for today, we saved for tomorrow and I'm thrilled we did as I can continue to live my life without worrying if there will be enough for tomorrow, next week, next month, next year or dozens of years from now.
The work ethic today is crap, there is no allegiance and everyone is wondering how they can get more for less. I say NO to the Big 3 and as for their unions........SHAME ON YOU!
I am very passionate about this topic and my feelings run very deep.
I have soooo much to say but I will not do it here. I agree with you ALL.
Let them file bankruptcy and come out of it with the plan on future cars that should have been done during the last 5 years of them spending, spending, spending, not on R&D.
Maybe they will have a car out by this time 2009 that will let them earn their way back into the consumers heart.
Our neighbors brag about the money they make working at Chrysler. They laugh about playing games with their file cabinet drawers to while away the time. Grrr. Another guy has been layed off for over a year. He loves it. He makes 90% of his wages.
When the auto workers are willing to take a pay cut, then maybe things will begin to look better for the rest of us. Thanks for listing to me rant! LOL Karen
I have an award for you. It's the Blog L♥ve award. Participation is not mandatory however. :)
State of our economy? In a word, SCARY! To know that all those greedy CEO's are bankrupting this country and than adding insult to injury expect us to bail them out is outrageous!
But thank goodness my business is thriving.
Good post, and the banks need tighter regulation for sure! Here in the UK the banks have been bailed out by the taxpayer and despite this are still holding back on lending. The banks should not be bailed out, let them go under.
Have you emailed your law makers to inform them of how strongly you feel? This is the main reason why they've been turned down so far. It's possible that our President will over ride other lawmakers and give the Big 3 a bailout afterall - email the President and let him know it's not alright.
Hiya! Oh I get to say that NO the government has no business touching private industry. Look what they did to Social Security that they were supposed to have their little fingers in?! They stole our moolah!
;) So, they need to get the heck outta the corporations and let the corporations go bankrupt. Hey, there are Bankruptcy laws out there. I own my own business. If it fails, it fails. It's not anyone else's deal to SAVE my tushy.
argh... U.S. has somehow moved to a socialist attitude. That's not what this country was supposed to be. no no no
I could also go on for days about this topic and how upset it makes me. You have hit the nail on the head. It's time to pay the piper for our over indulgence and move on. Stop bailing every business out. We need a real change in government and we never seem to get it.
I have no sympathy for the UAW. I expect that eventually that union will have to give up some of their wages and benefits if they want to have jobs at all. As for money issues, we have been in a downward spiral since we left the gold standard and went to fiat money. What that means is that instead of our country guaranteeing our dollar with gold, we guarantee it with taxes they intend to reap. Our economy is in a depression and will stay that way until it readjusts somehow. GREED is the #1 killer of our economy, in my opinion.
People previously mentioned the UAW and yes, they definitely need to make concessions, they should be made across the board. I know one of the executives said he would work for $1 a year, I say, take him up on it. Cut everyone's salary across the board (that goes for the banks too). Most of the CEO's seem to be very willing to throw their companies and employees under the bus to maintain their extravagant lifestyle. I agree that greed is a big part of it.
I blame the homeowners less than the lending institutions because many of these homeowners didn't know what they were doing. Yes, there were people who bought million dollar homes on credit, but there are also families who were trying to make ends meet and live the dream of owning their own homes. The lenders sold them a bill of goods and they didn't know enough to understand when they were being deceived.
I completely and totally agree with you and all the people that have commented.
What I want to know, is where is our 'bailout'? You know, those of us who choose to 'do it right' and not get into debt up to our eyeballs but live within our means, pay our mortgage on time, either have no credit card debt or pay them off each month...when do we get 'free money' for being 'good'?
I absolutely agree with Mountain Woman's statement: "It's time to pay the piper for our over indulgence and move on. Stop bailing every business out. We need a real change in government and we never seem to get it."
I'ts all about accepting responsibility isn't it? Once we accept that the mess is of our own making, we can finally take the necessary steps to fix it and move on. We didn't get into debt overnight, we didn't go broke overnight, and we won't get out of it overnight - BUT... as long as we can always find someone to put the blame on, we will never get it right.
I also agree with those who say that overpaid workers just do not work that hard - I have seen this first hand. Companies seem to hold on to the people who hardly work, while letting go of the people with knowledge and a good work ethic who could move them forward. I am an older, unemployed lady who was "let go" quite unexpectedly and it is hard to get another job when your hair is graying and your memory is a little fuzzy too - can I get an Amen?
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