About 4 months ago, I protest against the government bail-out of the auto industry. I said they were inefficient operations that were being driven out of business by the Auto Workers Union and they’d be back asking for more money pretty soon.
Well, it looks like the time to ask for more money has arrived! GM just announced it would need another $16.6 Billion if economic conditions continued to worsen, in addition to the $13.4 Billion it has already recieved. Of course economic conditions are going to worsen. GM’s statement that it may achieve profitability in 2 years and might be able to pay off its loans by 2017 sounds completely bogus to me.
GM claims it will be out of money by March. That means it spent the $13.4 Billion it recieved in December in just 3 months, or nearly $4.5 Billion every month! The company claimed that if it had to file Chapter 11, the cost to the government could reach $100 Billion, so in fact, pay them $16.6 Billion is actually a good deal.
When are we going to pull the plug on this loser?
Many people say that the economy can’t withstand the shock from the loss of nearly 1,000,000 jobs that the auto-industry provides. But the US lost nearly 600,000 jobs in January. Why aren’t we bailing out all those people too? Who decides which jobs get preferential treatment and which ones get axed? Does it help if the CEOs have friends in Congress? Or the Federal Reserve? (We know Ben Bernanke bailed out his old friends at Goldman Sachs while letting Lehman fail).
With the government spending all this money on things that don’t affect me, I can only think of one thing.
Where’s my bail out?