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By Gene Quinn |
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AIG, the embattled insurer, just keeps getting more and more taxpayer money, with the latest redo of their personal bailout rising to $150 billion, and the AP reports that there is no way to know for sure that AIG won’t be back in line for more money in the future. Also in line for government handouts are General Motors, who had their stock target price slashed to zero, yes $0, by a Deutsche Bank AG analyst who downgraded the shares to reflect the opinion the company is worthless. Chrysler and Ford are no doubt soon to follow GM into the taxpayer assistance line given that President-elect Obama and Speaker Pelosi are both supporting a huge bailout for Detroit. Then Circuit City files for bankruptcytoday and we can only assume that more business failures are on the way in light of the slowing economy. What in the name of all that is right with the world happened to get us in this mess? And all of this is happening with a Republican White House? What are we in store for once Obama, Pelosi and Reid are running the town? This is not good… not good at all!
It is hard to pick up a newspaper, watch Cable news or read the Internet without coming across a question about whether bailout money should be used to fund corporate executive bonuses or used to fund acquisitions. It is almost like the financial world has turned into an episode of the Twilight Zone. Does anyone really think that taxpayers should fund bonuses for anyone, let alone the overpaid and under performing CEOs that lead Wall Street straight into the ditch? Does anyone believe that the bailout money, which was supposed to be for the purpose of getting banks to lend again, should be used to allow banks to sure up their spreadsheets and become bigger through acquisition? Apparently there are many to whom this irrational and illogical lunacy makes sense. Unfortunately for us they are our leaders.
As everyone reading undoubtedly knows, we just had an election so we are now stuck with this band of merry misfits for at least two more years, and then with an Obama Administration for another two more years thereafter. So there is no silver bullet in our future, which means that we can look forward to a worsening economy, more job cuts, a tighter credit market and the demise of free market economics. It is unbelievable to me that it has come to this, and unacceptable that anyone who calls themselves a conservative or a Republican or a conservative Republican could ever have taken any part in this debacle. It is no wonder John McCain lost and the Democrats fortified their control of Congress. Conservatives and Republicans who fail to understand the meaning of being conservative and Republican have lead us into the abyss and we should not soon forget that.
There is a single primary reason that a free market economy works — those who cannot keep up are left to follow the path toward irrelevance. The path toward irrelevance is what keeps companies strong. No one wants to take the path to irrelevance so decisions are made and courses are charted to keep companies strong, vibrant and moving forward. If you take away the path to irrelevance as an option for under performing companies and prop those same companies up with taxpayer money to prevent them from failing what you are doing is perpetuating a cycle that tolerates and even rewards failure and ineptitude. When we become a country that rewards inefficiency and removes risk for unacceptable practices we become a country that is in demise. By propping up those companies who betrayed us we are sending a message to every industry out there — success no longer matters and we will be here to save you from your own terrible decisions. Where is the incentive if taxpayers are going to provide a safety net for companies and CEOs who fixed the books, engaged in reckless behaviors and failed to keep their own affairs in order? The answer, of course, is that there is no incentive to succeed when government promises to prevent bankruptcy. In order to keep our economy strong the road to Wall Street should be littered with the corpses of companies that lost their way and failed. Then and only then will honest and thoughtful stewardship rewarded.
We have been betrayed by our leaders and by the CEOs who caused this financial meltdown. We should not be talking about whether CEOs should be getting bonuses, or whether AIG should have held multiple boondoggle retreats. We should be talking about how long these CEOs should be going to jail for and what reforms will be put in place to ensure that only the strong survive and the weak are but a footnote in the history books. If a free market economy means anything it has to mean that companies are free to make stupid decisions and go bankrupt. It cannot mean that taxpayers hand out money for free to every company or industry that couldn’t cut it in the real world.
Perhaps we should be thankful that the Democrats run everything in Washington for the next two years, because it will be impossible for them to blame anyone other than themselves for the calamity that is virtually certain to follow. If we can position ourselves appropriately, true conservative leaders take power on the Republican side in Congress and we work toward nominating someone who believes in and truly embodies conservative values we will be able to come out the other side and save our economy in the process. And while we are at it, why don’t we try and get some leaders who can actually communicate their ideals and conservative values and concepts to the American people. We don’t need another Ronald Reagan, after all that would be to much to expect of anyone, but we do need to realize we are on the side that is right and it is time for us to live up to our values and communicate with the American people in a way that leaves no doubt that our plan for America is the better choice.
Tags: aig, chrysler, ford, gm, obama, pelosi, reid
Posted in Economy | Comments (1)
January 17th, 2009 at 5:50 pm
Great post! I really enjoy reading your blog. Keep up the good work.
I’ve just started a new blog that will be highlighting the dangerous advances of the secular progressive movement (pro-gay “rights”, pro-abortion, anti-religious freedoms, etc). Unfortunately, most Christians still don’t know what’s going on out there and the mainstream media certainly isn’t covering it.
We’re looking to build a solid group of social conservatives (especially Mike Huckabee supporters) who’ll frequent our site regularly and contribute to some good discussions. I hope you’ll check us out!
If you’ll add us to your blogroll we’ll gladly add you to ours. Just drop us a comment over at our blog so that we’ll know to add you. Our blog is called Religion and Morality.
Thanks!