Bailout Circuit City NOW!

It’s high time that we bailout Circuit City.  What would happen to the economy if we allow Circuit City to go under? We just CANNOT let this happen!

After all, it’s only fair that if the taxpayers bail out Wall Street, and then bail out FordChryslerGM, that the next logical step would Circuit City…

Will the Congress and Office-Of-The-President-Elect go for this? Not likely, because Circuit City is A). non-union (and thus not a voting block for Democrat Congressthiefs and Presidential candidates, B). Circuit City isn’t in the business of making sub-prime loans to people likely to vote Democrat and C). Congress is not interested in nationalizing the retail electronics industry (not sure how the President-elect feels about this, as his agenda is now apparently top secret).

I’m sure that by now, you’ve figured out that my proposal for Circuit City is extremely facetious. But it does illustrate the need for a more well-thought-out approach to how taxpayer money is used (if it were up to me, the companies that are going bankrupt should be allowed to; propping them up will only prolong the agony, and cause worsening of the economic situation).

Despite opposition from House Republicans, our fiscally-liberal,  lame-duck President and the remainder of Congress gave current Treasury Secretary and former Goldman-Sachs CEO Henry Paulson carte blanche to “bailout” Wall Street – “Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.” It was packaged as being urgently needed to open up credit, in order to get the stalled economy flowing. The plan was to buy up “troubled assets”.

It has now come to light that the great “bait and switch” has occured. The plan that was marketed as buying troubled assets has now evolved into using OUR money to purchase a stake in these banks. Yes, boys and girls, Socialism is alive and well in Obamanation, as the thiefs in Bohicaville are using our money to nationalize the Banking industry.

And with Democrat control of both Congress and The White House, there will likely be even MORE income redistribution, not to help the “less fortunate”, but to help politicians in office STAY in office.

Thank you brain-dead electorate. If you voted these people in, you’ll get “change” alright, but certainly don’t count on the tax cut for the “middle class”; pretty soon, we’ll have no middle class.

So what’s in store for us? Nobody can predict exactly, but it ain’t hard to see that it isn’t good.

Detroit Bailout

Here comes yet ANOTHER bailout BOHICA.

We (taxpayers) loaned US automakers a mere $25 BILLION in September, and they are now looking for another $50 BILLION. What will it be in 2 MORE months-$100 billion?

Why are we doing this? The rationale seems to be that if GM, Ford, and/or Chrysler were to go out of business, it would collapse the economy.

But I would argue that propping them up will make things worse, and merely postpone the inevitable.

The UAW, in it’s infinite greed, has continued to take everything they can get. For every 1 hourly UAW employee, there are 4 retirees eligible for health care benefits.  Also, UAW employees, on average, earn $25 more per hour in total compensation than Toyota/Honda workers. Unreasonably high compensation and unlimited health care benefits for retirees have put these companies in dire financial straits, and yet we are expected to prolong the agony.

But it doesn’t take a rocket scientist to figure out what is going on here. The Democrats are strongly supporting this next bailout. And why?

“Big Labor” helped BHO get elected (along with many other Dems in various offices), and it’s payback time. But this typical anti-capitalist stance will only work for so long. By using tax revenues to continue to prop up enterprises that should be bankrupt, the economy as a whole will continue a steeper downturn, to the point that the revenues will dry up, and expenditures in other areas will skyrocket, and more and more people are out of work.

And yet, as pointed out here, would Congress prop up Wal Mart with loans if needed? I think not.

So get used to it, and expect that UAW-controlled companies will continue to come to us for more and more money.