Comments on: what’s different http://chaos-blog.net/2009/03/30/whats-different/ possibly fair. never balanced. Wed, 27 Jul 2011 16:56:30 -0400 hourly 1 http://wordpress.org/?v=3.0 By: Lisa http://chaos-blog.net/2009/03/30/whats-different/comment-page-1/#comment-14275 Lisa Tue, 31 Mar 2009 21:44:23 +0000 http://chaos-blog.net/?p=807#comment-14275 Ah yes...forgot about Fannie / Freddie. Oops. My point remains the same though -- this is a bad trend that President Bush started here. I'm with you. I say bail out nobody and let the free market pick winners and losers. But we are way beyond that point now. BTW, Did I put in enough negative references to the previous administration in that post to suit you? After all, that's why I mentioned Bush. (Go ahead and believe that if you want to.) :) The auto industry wouldn't be in such a bad state if it wasn't for many of the hoops they already have to jump through to make an average car. CAFE standards and various other government regulations (mostly environmental) have been making it more and more expensive to build cars. I'm not at all discounting the high cost of possible mismanagement and paid benefits for people who haven't worked at the Big Three for years. That's a very significant problem as well. I don't think that President Obama has the right solution to these problems with the auto industry. Where are the experts on this industry that he calls for advice on what to do next with these automakers? He needs to find some people like that to help him. I don't know any more about what to do with our economic problems than the President does, but I do know that if we want to recover our involuntary investment in AIG or GM, we have to let those who know how to do their jobs do their jobs and get out of their way so they can succeed. Micromanaging the bailed-out companies from the Oval Office won't get them in the black any time soon. You're probably going to say that this is not what President Obama is doing. We will have to disagree on that, and I can't help being concerned about where this could lead in the future. Ah yes…forgot about Fannie / Freddie. Oops. My point remains the same though — this is a bad trend that President Bush started here. I’m with you. I say bail out nobody and let the free market pick winners and losers. But we are way beyond that point now. BTW, Did I put in enough negative references to the previous administration in that post to suit you? After all, that’s why I mentioned Bush. (Go ahead and believe that if you want to.) :) The auto industry wouldn’t be in such a bad state if it wasn’t for many of the hoops they already have to jump through to make an average car. CAFE standards and various other government regulations (mostly environmental) have been making it more and more expensive to build cars. I’m not at all discounting the high cost of possible mismanagement and paid benefits for people who haven’t worked at the Big Three for years. That’s a very significant problem as well. I don’t think that President Obama has the right solution to these problems with the auto industry. Where are the experts on this industry that he calls for advice on what to do next with these automakers? He needs to find some people like that to help him.

I don’t know any more about what to do with our economic problems than the President does, but I do know that if we want to recover our involuntary investment in AIG or GM, we have to let those who know how to do their jobs do their jobs and get out of their way so they can succeed. Micromanaging the bailed-out companies from the Oval Office won’t get them in the black any time soon. You’re probably going to say that this is not what President Obama is doing. We will have to disagree on that, and I can’t help being concerned about where this could lead in the future.

]]> By: Chris http://chaos-blog.net/2009/03/30/whats-different/comment-page-1/#comment-14268 Chris Tue, 31 Mar 2009 14:34:52 +0000 http://chaos-blog.net/?p=807#comment-14268 Couple different things I'm sure you know I'm going to pick up on :) Not only did the Bush administration order AIG CEO to step aside, but also <a href="http://www.treas.gov/press/releases/hp1129.htm" rel="nofollow">Fannie and Freddie's CEO</a> as well. That's 3 private industry CEO's told to resign by Bush. Only 1 so far for Obama. "<i>It’s just that the failure of AIG, while terribly detrimental to the economy (and many 401ks) in the short term, wouldn’t have nearly the impact of GM or another one of the Big Three closing up shop</i>." But it's not just AIG, it's also Fannie and Freddie, two huge lenders. The auto industry could not possibly exist without the lending industry, so I do think each industry is just as important in their own right. I think they both rely on each other. My beef is in the fact that the government can't bailout Wall St. fast enough but demands a totally different standard when it comes to the auto industry. Like you, I'm against bailouts whatever the industry. But if we are going to routinely bailout Wall St. then I think we have to be just as lenient with Detroit. Couple different things I’m sure you know I’m going to pick up on :)

Not only did the Bush administration order AIG CEO to step aside, but also Fannie and Freddie’s CEO as well. That’s 3 private industry CEO’s told to resign by Bush. Only 1 so far for Obama.

“It’s just that the failure of AIG, while terribly detrimental to the economy (and many 401ks) in the short term, wouldn’t have nearly the impact of GM or another one of the Big Three closing up shop.”

But it’s not just AIG, it’s also Fannie and Freddie, two huge lenders. The auto industry could not possibly exist without the lending industry, so I do think each industry is just as important in their own right. I think they both rely on each other. My beef is in the fact that the government can’t bailout Wall St. fast enough but demands a totally different standard when it comes to the auto industry. Like you, I’m against bailouts whatever the industry. But if we are going to routinely bailout Wall St. then I think we have to be just as lenient with Detroit.

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