Should We Rescue the Automakers?

Letting the automakers fail seems like the right thing to do. Why prop them up, artificially, if they can’t stand on their own. I keep thinking that they made the wrong cars, knowingly, and now they can only make big gas hogs when the world can only afford high mileage hybrids or electric. On the other hand, the American consumer wanted the crap that Detroit was making and these companies were financially successful until Wall Street crashed the market and the consumer quit buying.

So, Detroit is in trouble only because the consumer stopped buying cars. Is that Detroit’s fault? The consumer has stopped buying a lot of things and the companies that were making or selling those things are failing but not because those companies were poorly run. Any company with zero sales is bound to fail.

Now that Detroit is failing for lack of sales we are blaming the failure on overpaid CEOs, union labor and low MPG autos. While all of these may be issues none of them caused the companies to fail.

Obama is going to spend money to recover our economy. It will be costly to most of us but he is using this disaster as an opportunity to restore America to something better than it was before the crash. Since we are going to spend a lot of money, let’s spend it to do all the things that we couldn’t afford before the crash. We have long needed to change our energy resources – now is the time. Our bridges and roads are a disaster; our healthcare system is inefficient; our schools are decaying and inadequate. So, while we have to spend at least a trillion dollars to jump start the economy we will spend it so that we are better than before.

In that spirit, we should do something about the American auto industry. However, “I” am not qualified to decide what to do and how to do it. But, I’m convinced that if we spend money on the automakers they should be rebuilt into a 21st century automaker that builds and sells the cars we “should” be driving instead of the cars we “love” to drive. We just may be good enough to build a car that meets both of our needs.

What's wrong with Wall Street?

I don't believe that a single Wall Street manager who accepted a bonus after receiving bailout funds hesitated for even a moment before doing so. They have always been willing to do anything for money. They neither care who they take the money from nor the impact that it will have on them.

Some Compensation Experts are saying that the President went too far because the talented employees that have been earning a lot more than $500,000 will leave the struggling banks to take jobs at banks that do not need bailout funds. I hope that is a promise rather than an idle threat. After all, what good have they done where they are now - their bank failed!

The same experts also said that these managers will not be able to maintain their current lifestyle with only $500,000 per year. When millions of Americans are out of work and millions more soon will be... When millions of Americans have lost half of their retirement savings... When millions of Americans are losing their homes... because the Greedy Wall Street managers destroyed the economy after the government deregulated the banks, insurance companies and commodity trading... How can they complain that they can't live on $500,000 a year? Simple. They only care about themselves; nobody else matters. Really! It is that simple.

We have a name for people like that - Sociopath. The following is a brief description of a sociopath. Let's see how well it fits the conduct of the Wall Street managers who have just awarded themselves $18.4 billion of taxpayers money.

• Glibness and Superficial Charm
• They never recognize the rights of others and see their self-serving behaviors as permissible.
• Grandiose Sense of Self - Feels entitled to certain things as "their right."
• Lack of Remorse and Shame - The end always justifies the means.
• Incapacity for Compassion
• Callousness/Lack of Empathy
• Not concerned about wrecking others' lives and dreams. Oblivious or indifferent to the devastation they cause. Does not accept blame themselves, but blames others, even for acts they obviously committed.
• Criminal or Entrepreneurial Versatility

I hope that they all leave Wall Street.