Wipe The Slate Clean - Let Banks And Automakers Fail!

We all know that any loan deal that the Goverment puts together for the Big 3 automakers is only going to delay the inevitable.  Effectively, Ford (F), General Motors (GM) and Citigroup (C) are all bankrupt.  Yeah…Bankrupt!

I said it.  All we’ve done is talk about it and look at how bad it will be and how horrible it will be if these companies are allowed to fail. So what…Why should I care?

I don’t own any F, GM or C stock.  Anyone that does ought to have their head examined.  I don’t own any F or GM or Chrysler bonds either.  Whoever does is nuts.  They obviously were not educated enough about the risks of owning HIGHLY LEVERAGED FIRMS.  Why would you own bonds from F or GM that paid a meager margin over Treasury Debt when they were purchased? Y’aint getting paid enough to take the risk.  I’m generalizing here, but there’s a lot of people running large bond portfolios that don’t know the first thing about risk management.

Hopefully, you won’t own the paper when the music stops.

These companies have all been on life support for the last 10 years.  I’m tired of the UAW dictating the negotiations, explaining to me why it’s necessary to save these dinosaurs.  Yeah, I feel bad for the line workers that will hit the unemployment lines like everyone else these days, but  those are the rules to the game.  Accept it.  Move on.  Life will go on.  Toyota and Honda blow away the Big 3 on quality.  No comparison.  Why should we let the Big 3 continue?  I’m sure that we’re going to hear the pleading about the job losses, the economy, etc. etc. blah blah blah.

At this point, does it matter? So what?  THE USA IS GOING DOWN THE TUBES. LET’S SAVE THE COUNTRY BEFORE WE SAVE GM, F AND C. MAKE SENSE?

Remember, as capitalists we’re supposed to work hard and  earn a decent living.  If the company sucks, find another one.  That’s how it works.  Yeah it’s scary and risk etc., but that’s life. NO GUARANTEES.  Somewhere along the way employees forgot how to think for themselves.  Employees think that they’re entitled to a job for life.

When the company is failing, leave and go find a better company to work for.

The problem in our society is that competition has been eliminated.  This country only has room for so many UPS drivers and beer delivery men.

The automakers have an oligopoly.  They got too big and powerful.  Unfortunately, they also got fat and dumb at the same time.   They failed to use their size to their advantage.  They failed to make the tough decisions about how to run the business along the way.  They’ll say they made tough decisions along the way, but they didn’t.  The UAW threatened the Senior Executives and they all caved - always.  It was easier to collect their fat pensions and salaries than to actually make tough decisions and run the company for the shareholders.

The Free Market is the ultimate judge.  The market would rather have them become bankrupt.

Why should our government get in the way of the functioning of the Free Market.  Let them work it out amongst themselves.  Maybe they can wipe out the UAW once and for all.  Eliminate billions of dollars in legacy costs, and actually make a decent vehicle that most Americans can afford without having to take a second mortgage on their house (oh yeah, can’t do that either).

Whatever they workout, it should be their decision, not ours (American Voters).  Where are the stockholders and bondholders in this bankruptcy discussion? Oh yeah, I forgot. They’re mainly mutual funds and institutional Investors that always vote with management.  Guess that one didn’t work out too well either, huh?

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