Tuesday, June 2, 2009

Yet Another Bailout

This time it's for GM/Chrysler. Now, I'm no econ major so my feeliongs towards bailing out privately owned companies could be wrong. It just so happens that I can't make any sense of it. The economy is in such a shit hole that no one can afford anything because of losing their jobs or taking a huge paycut. In return, the government is becoming more in debt. The bankrupted car companies asked for a bailout and received it. They went bankrupt because thewy were spending money in producing their cars. Unfortunately, no one was buying their cars so they lost out and became bankrupt. They then got the money to bail them out. This loan puts the government even more in debt. But if the car companies get more cars they are going to upgrade their assembly plants and produce better cars or whatever. That doesn't mean that people are going to magically have more money to buy the cars that are produced. So how are these car companies going to profit from the bail out? How is anyone going to profit from the bail out? I just don't see what all these car companies are doing that are different. Oh well, here's to making another genius decision.



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