In his article for BusinessWeek (businessweek.com) titled Auto Bailout Agreement Remains Elusive, David Kiley writes:
"A loan package to bail out the teetering U.S. auto industry is heading toward a vote this week in Congress. But at the close of business on Dec. 9, the Senate, the House of Representatives, and the White House were still short of a compromise that could win passage."
The bailout of the big three automakers has been a topic of much debate in the news. It is interesting that 7 trillion is going to bail out financial institutions while 29 billion is being heavily debated. I also find it interesting that the loans from the federal reserve have gone unmentioned until recently, and that neither congress nor the president has had any say in the matter. A private group otherwise known as the Federal Reserve has been lending to other insiders in the financial markets. While the money is there, the question is how is this money being accounted for and who is making the lending decisions? Especially when playing with taxpayer money.
I also found a striking difference between how the bailout is being handled. The CEO's of the big three were testifying in congress. Where is the CEO of AIG or Citigroup? The larger bailout is being handled outside of the media and in the back rooms of capital hill, while the big three are a distraction and a side show to the entire situation. The executives have also made themselves very good targets, by using the company owned private jets. While perfectly legitimate and probably more cost effective than some other methods of transportation, they did not manage the press well. Especially for a group looking for taxpayer money.
The bailout process has sharply illustrated all of the things that need to be corrected in how the federal government manages funds, the role of the federal reserve, and the use of the media on both sides. Most will tell you that a bailout is necessary, but no one can tell you why, or how it is structured. Not even at a high level. This is just demonstrating that we are facing more of the same with the desire to throw money not solutions at a problem.
"A loan package to bail out the teetering U.S. auto industry is heading toward a vote this week in Congress. But at the close of business on Dec. 9, the Senate, the House of Representatives, and the White House were still short of a compromise that could win passage."
The bailout of the big three automakers has been a topic of much debate in the news. It is interesting that 7 trillion is going to bail out financial institutions while 29 billion is being heavily debated. I also find it interesting that the loans from the federal reserve have gone unmentioned until recently, and that neither congress nor the president has had any say in the matter. A private group otherwise known as the Federal Reserve has been lending to other insiders in the financial markets. While the money is there, the question is how is this money being accounted for and who is making the lending decisions? Especially when playing with taxpayer money.
I also found a striking difference between how the bailout is being handled. The CEO's of the big three were testifying in congress. Where is the CEO of AIG or Citigroup? The larger bailout is being handled outside of the media and in the back rooms of capital hill, while the big three are a distraction and a side show to the entire situation. The executives have also made themselves very good targets, by using the company owned private jets. While perfectly legitimate and probably more cost effective than some other methods of transportation, they did not manage the press well. Especially for a group looking for taxpayer money.
The bailout process has sharply illustrated all of the things that need to be corrected in how the federal government manages funds, the role of the federal reserve, and the use of the media on both sides. Most will tell you that a bailout is necessary, but no one can tell you why, or how it is structured. Not even at a high level. This is just demonstrating that we are facing more of the same with the desire to throw money not solutions at a problem.
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