The Automaker Bailout

The discussion is really heating up about this topic. Congress is going to take it up on Monday. Should we or shouldn't we give them the money? It seems there are many people who are undecided about this matter. Here are a number of reasons why bailing the automakers out does not make sense.

1. Management is inept:

They were the ones who totally misread the desires of the buying public. It is true the historic economic crash was not foreseen by anyone. However, the Big Three were getting their clocks cleaned by the Japanese for years. This economy is just the final nail.

They hung their future on big cars. It is identical from the events of the 1970s. The Japanese, meanwhile, moved towards more fuel efficient cars. Toyota is on it's 2nd or 3rd generation Hybrid. The American automakers simply stuck to an old model which no longer works.

Billions of dollars in bailout money will not make management any smarter.

2. The Unions are destructive:

There was a time when unions were necessary. Now, they are a destructive force. The Big Three has been bent over a barrel for years by the UAW. This resulted in outrageous contracts which inevitably will bankrupt a country.

GM is paying billions into retirees pension funds and for medical coverage. It is estimated that $1,200 in each car is simply the money GM pays for medical. This puts them at a big disadvantage. The Japanese built plants in southern states where labor is much cheaper. They enjoy a competitive advantage which the Big Three cannot overcome.

Billions of dollars to the automakers will not make the Union any less greedy. Bet the ranch thei will want their fair share.

3. The 3 million jobs tied to the auto industry will be lost anyway:

It is estimated that 3 million people are employed by industries directly tied to the automobile industry. The idea of bailing these companies out is to save these jobs. Sadly, they will be lost anyway. Billions of dollars given this year will be followed by billions more in the future. They will not turn profitable simply with loans for billions.

People dislike hearing this, but these jobs will be lost. A bailout only delays the inevitable. Instead of realizing this in 2009, the unemployment jump will occur in 2010 or 2011. Communities will be wrecked because of this regardless of what the government does.

4. The Feds know nothing about business:

The proposals suggested include some type of government "ownership" in exchange for the money. Since when did the Feds become adept at picking winners. How do members of Congress believe that they will fare better in the automobile business when the Post Office lost $40 billion. Perhaps they ought to look at their own business model to see where it is broken.

I do not want the government deciding which companies survive and which ones are allowed to go under. This is heresy. Government is there to oversee, not to manage. Get them out of the private sector altogether. Perhaps when the Feds show some ability to budget, manage, and oversee their own affairs effectively, then we can trust them with running a business.

5. It puts a stop to the madness:

Everyone and their brother is knocking at the Treasury's door. Handout nation is in full swing. Initially, the $700 billion bailout was going to be limited to financial institutions. Now, the automakers seem to qualify. Many are suggesting we take some of the money from that package and give it to the automakers. The Big Three do not qualify. Once again the government mislead us.

This insanity has to stop. We need to put a cork in the government money drain. Passing on this bailout will tell the business community that you are responsible for you owned destiny. You succeed or fail based upon your abilities. That is called capitalism.

One final note, I find it interesting that the Democrats suddenly took an interest in the big corporations. Listening to their rhetoric during the campaign, you would believe they think that big business is the anti-Christ. Obama assaulted McCain over tax cuts for the greedy oil companies. Now, the big corporations are not so evil when there are millions of jobs at stake. Perhaps business does some good after all.

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The Handout Nation

What is the difference between a "handout" and a "bailout"? In effect they are the same. The only difference is the economic class which the terms are applied. Who gets bailouts? Corporations and perhaps homeowners. Those who own something get a bailout. Handouts go to those who are desolate. The ones who have absolutely nothing get a handout from the government.

I mentioned in past articles that the government is broke. We have no more money other than what we borrow from other countries. The $700 billion bailout package of the financial institutions was done with loaned money. We are going in debt to save those who are going under. This begs to question "who will save us"?

My question is "where will it all stop". Already, the automobile manufacturers are hitting up the Treasury for $50-$75 billion. Who is next? Bet the ranch the airlines are already circling the wagons. American Express is now a bank, thus entitling it to Fed funds. With Starbucks taking a 90% hit on it's profit, surely they will be entitled to assistance. After all, we cannot do without $5 cups of coffee.

This is getting absurd. We were told at the time of the first bailout that the financial institutions were necessary, kind of like a utility. Our country cannot operate without credit. Okay, I buy that one. But can we do without the cars from the American manufacturers. Since they are building stuff that nobody wants, I would think so.

It is time to tell Washington enough. The loss of the automobile manufacturers will cost us roughly 3 million jobs. Well guess what? We are going to lose them anyway. These companies are operating under an old, worn out system. The union is going to strong arm for their share. They are partially responsible for the mess the companies are in.

The United States is a nation of handouts. Nowhere is anyone mentioning personal responsibility in all these messes. Management at the car companies misread the market while the unions forced contracts that were destructive to the overall health of the industry. Both sides were at fault and the taxpayer need not bail them out.

We preach that the revolution is coming. Socialism is already among us. Do you want to live like they do in France? Who here wants the government dictating everything that one is involved in? Certainly no self respecting American. The age of returning to the vision of our forefathers is here. Begin to arm yourself with the knowledge necessary to combat the enemy. And, remember, the enemy is most likely your next door neighbor. That person is most likely buying the bull crap the media is promoting. This is a process that takes you down with it.

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Survival Guide

It is time to develop a survival guide. If you read my words over these past couple of weeks, you know that we are screwed. The government is looking to handout billions of dollars to rescue everybody under the sun. Sadly, the ones who are stuck paying for this mess are the hard working, middle income people. Contrary to what we were promised, the wealthy will not see a tax increase.

So what happens now? Unless some of you are ready to storm Washington and overthrow the government (I am all for it but we are a bit premature), it is time to develop a plan for your own survival. Times are going to get rougher. Again, the candidates all mentioned how rosy things will get after they are elected. Forget those dingbats. Listen to those who have some sense like economists, money managers, business owners, accountants, and financial planners. All these individuals point to the fact that we are in for a rougher time for another 12 months. Therefore, it is time for you to develop a strategy for your own survival.

***You will notice that nowhere in these suggestions does it mention wait for the government to help you out. This is not in keeping with personal responsibility. As I showed many times, depending upon them is a plan to screw yourself. If you fail to believe this, ask the 1,500 people who were killed in Katrina because they waited for the government to help them instead of taking responsibility for their own situation.

*******Here is a suggestion I need to make that might help some going forward. If you find yourself in the situation where there is a hurricane that is a category 3 or higher coming at you, get the hell out of there. You would think this is common sense but obviously it is not.

Here is a plan for you to move forward over the next few years.

1. Attitude

This seems contrary to the general tone of this blog, but maintain a positive attitude. I do not hold great faith in our leadership. However, I am positive that I will make the situations in my life work regardless of what transpires. You need to implement this in your life.

It is easy to fall into the doom and gloom. However, it is important to stay calm while not overreacting. Survival experts teach that the one who will most likely emerge from the wilderness is the one with the positive attitude.

2. Use Your Anger Productively

Many are upset with the results. At the same time, many more will be angered with they realize they were lied to once again. Yet, being angry with the President, Congress, or the voters solves nothing. Punch you pillow a few times and move on.

How can you use your anger? Motivation. It is time for you to take charge of your life. Things are not going easy so persistence is extremely important. Anger can be a terrific motivator if used properly. My best workouts are often on those days where something angered me to no end. This is how we can channel the negative emotion into productivity.

3. Plan

Even in the worst of times, there are lots of opportunities. Over the next few years, we are going to see radical changes in this country. Are you going to be in a position to take advantage of them?

Where is your life going? Your career? Your marriage? Your finances? It is time to sit down and think about these things. Develop investment strategies for the next few years. Resolve to live on a budget. Plan what you are going to do to increase your likelihood of success.

4. Action

Plans are worthless without taking action. Make your action decisive and be correct. Mistakes are costly but no action is usually more costly. Even if you make a mistake, often the proper path is clearer because of the previous decision.

Also, do not try to change the next four years (of the election did not go your way) this week. Break down all that you are doing into manageable steps. Brain Tracy states that you eat an elephant one bite at a time. Divide you plan into the smallest pieces you can.

5. Pat yourself on the back

Celebrate the successes you have along the line. Recognize when you reach your smaller milestones. Weight loss experts proclaim how more effective people are at losing a lot when they reward themselves with small gifts for different barometer levels. This allows you to fulfill the holistic side of yourself while providing future motivation.

6. Stop being a victim

This is the dagger in the heart of personal responsibility. Stop whining and get one with it. Nobody ever pulled him/herself out of a hole by playing the victim. Use the previous steps and ignore what the meat heads do in Washington. While we know what they are capable of, you are the one responsible for the success in your life. Take control of it.

These are 6 steps which can reduce the impact of the turmoil that is going on in the country. The government will screw things up; we can expect that. Use this situation to take care of yourself. Personal responsibility is the answer to what ails your life at the moment. It is also the solution to our countries problems. Unfortunately, the country will take a while to grasp this concept.

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Is this Personal Responsibility

Here is the mindset of many. This woman has a daughter yet going to an Obama rally is the happiest day of her life because she will no longer have to worry about putting gas in her car or paying her mortgage. Is she for real?

I did like her last statement of "if I help him he is going to help me". Well, this is stupidity at it's finest. Someone needs to go up to this woman and slap her really hard. It is time for a reality check.

Here is a clue for her. Barack Obama is a politician. What he is promising now are termed "campaign promises". Historically, politicians, especially Presidential ones, have tended not to keep their word. Broken campaign promises to these people are as natural as taking a pee after drinking a gallon of water. In other words, it is a way of life for them.

That being said, why should anyone pay this woman's gas and mortgage? Personal responsibility teaches that it is up to you to create your path in life. It is up to you to determine the success you engage in life. The government has the responsibility to ensure that people are given the opportunity to succeed. The Constitution coupled with other laws guarantees that.


This is the sad state of our nation. My comments here are not racially motivated. The clip happens to be of a black person but Obama is going to be receiving 10 millions of votes from other ethnic groups. Many of them feel the same way this woman does. Reality is going to hit them in the face and hard.

I am going to surmise that the new President, most likely Obama, is going to break at least 75% of the campaign promises. For those waiting for the government to stop your foreclosures, I suggest calling an attorney. No matter how it all breaks down, this will require some kind of consent from the banks. So this woman who is waiting for Obama to pay her mortgage is going to find herself in the street. Well, perhaps that is where she belongs. Anyone who trusts the government to take care of you is a total fool.

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The Demise Of Democracy

A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship. The average age of the world’s greatest civilizations has been 200 years.

-Alexander Fraser Tytler (1747–1813)

Can you believe this statement was made 200 years ago? This sums up all that is happening with the United States political landscape. Based upon this statement, it is time to get rid of our existing government and start over. We eclipsed the 200 years useful life for the world's greatest civilizations. This is why we are promoting the idea of revolution.

Let us look at this quote in a bit more detail.

"...until the voters discover that they can vote themselves largesse from the public treasury". Does this sound familiar to anyone? Our government has turned into an organization of handouts. The politicians promise more to the people in return for the votes. Votes equal power in the political arena. So the people vote for the one who promises to give us them the most.

Here is a newsflash: America is done. If you hadn't heard already, there you have it. All the qualities which made this country the world leader are no longer promoted by our leaders. Instead, they reward laziness and incompetence. And now, with the Party of handouts completely in charge, we are going to see it increase.

I read a stat that mentioned that presently 43% of American citizens receive assistance from the Federal government. If this is true, we are moving rapidly towards the day when more than half the population will receive a check from the government. When this happens, we will see the decline at a quicker pace. Every society that had more than half it's people dependent upon the government disappeared. The retiring of the Baby Boomers in the next decade will take care of that.

"From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury..."

Obama is promising everything under the sun. McCain is only promising 3/4 of the things under the sun. Notice how there aren't headlines promoting establishing an atmosphere where personal responsibility will prosper. That is because the people do not want that. We are voting for the one who is going to give the most handouts. In this instance, it is Obama.

So, as you look out over the landscape over the next 10 years, begin to think who you would like as a dictator. According to the quote, that is the next part of the process. Doubt this will happen? Who would have guess the wisdom of the first part 50 years ago? History is on the side of America's demise.

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Taxes

This is an issue that was at the core of the American Revolution 230+ years ago. The American colonies rebelled at the taxes imposed upon them by England. Their motto was "taxation without representation". Our countries independence was sought after because of the taking of their money which benefited those in Europe.

Fast forward to our present era. We now have a Vice Presidential candidate who feels it is patriotic to pay taxes. What an ass he is. It is patriotic to go serve on the battlefield. Paying taxes is something we do to sustain the necessary services that society needs. At least that was the initial intention.

We also have a Presidential candidate who feels that we need to "redistribute the wealth" (actually, both want to do that in their own way). This shows how clueless these morons are. The concept of "protecting the less fortunate" is a myth. Our government has protected them to the point of dependence.

Personal responsibility is non-existent. The overwhelming idea is that the government is responsible for punishing success. It likes to spew "tax the rich". History shows the only one who gets screwed are those who are trying to make it. Teddy Kennedy is rich. So is John Kerry. Do you think they pay their fair share of taxes? If you do, you need your head examined. The Kennedy fortune is stowed away in family trust and shelters all which are exempt from taxes (and litigation). The rich protect themselves.

Without going into the absurdity of our tax code, my main question is "do you feel you are represented properly on the tax matter"? The answer is "no"! Everyone in Washington has their hand out. While they might want to cut taxes, they do not want to give up the power that comes from them. Redistributing the wealth is nothing more than a power play.

People need a wake up call. The average individual works into May just to pay taxes. Upwards to 40% of the average person's pay goes towards taxes of some kind. This is an absolute crime. Those who are responsible ought to be stoned to death. And the one that is at fault is the government.

We are in a new era. This election is critical for one reason: the winner will determine the pace which we implode. Obama, with his tax and spend policy, will throw the economy into a depression. He, along with his liberal cronies in Congress, will move us into a socialistic state overnight. McCain will take a little longer but he will get us there also. With him, bailout for corporations will occur with regularity. Suddenly, every business is of national importance.

Remember the lessons of the past. The events of the 1700s can easily recur. It is time that people realized how close this situation is to erupting.

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Over The Top

Are you one of those who feels that I am too "over the top" with my views. Many want to describe me as a radical extremist. I laugh when I hear that comparison. People are consistently trying to put me in a box politically. Because of my detest for socialism and communism, they believe I must be a conservative. Yet when I attack the religious nuts, I am a liberal. The truth is I am neither. What I am is angry at the way things are going.

I have news for everyone, this country is going to crap. If you fail to see this, you are blind. I know, this sounds like the typical rhetoric from someone aging that the world isn't the same. Hell, they thought society was ending when Sinatra came around. And Elvis. According to some, we needed to pack it in then.

In actuality, this situation is different. I am not talking about the moral fabric of this nation. What is happening is that we are moving from a successful system that rewarded risk, ingenuity, and achievement with one that promotes laziness and welfare. This is the reality of the circumstances of today.

I read a stat that stated roughly 43% of America receives some type of assistance from the government. This is not something that I doubt. Also, this is a number that will increase with the retirement of all the baby boomers in the next 10 years. What does this all mean?

It means the end of life as we know it. The great society that we called the American Dream is dead. We will see a shift over the next few decades towards our demise. Socialist ideals are almost too powerful to overcome. The political landscape is securing this.

How do I arrive at this conclusion? Simple. What happens when the people dependent upon the government passes the 50% mark? What campaign promises are politicians going to make to get elected? The answer is more handouts. A society that has more than half it's people relying on the government for support is on the socialistic path.

Those who believe this is a good thing were absent during history class. Consider what happened in a couple hundred years. We went from non-existent to the most powerful country in the world. We did this in the areas of politics, finance, and military. Countries which are 10-20 times older were surpassed by us. The system and qualities fostered in our system created this success.

Where were the socialistic countries? During WWII they were getting overrun by Hitler. It took our involvement to save their asses. What about their economies? Who rebuilt Europe after the War. The good ole U.S. of A.

The liberal economic policies work in theory. Actually, they are more effective in theory than capitalism. However, in reality they fail. The absence of the profit motive removes the ingenuity and creativity. If you want an example of a country without this, look at Italy since the end of WWII.

What does this all have to do with being over the top? It starts with the great need to get your attention. You are asleep at the wheel. The media and politicians are hoodwinking the people they are suppose to serve. Unless people wake up, we will soon be at the point where there is no turning back. This will certainly cause an upheaval by many. History proves that when the gap between rich and poor is too great, uprising occurs.

It is time to take this country back. Begin by re-evaluating all that you believe. Your mind is clouded by lies and misleading concepts. Think about the consequences of your decisions.

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People Are Going To Die

Whoever thought the United States was not the world leader was completely mistaken. For all the fluff about China's rise, the cohesion of Europe, and the growth in the Far East, the recent events show that we lead all other countries. The only problem is that we led them into a recession.

Politics is making a big deal about Joe the Plumber and whether he can buy his business under Obama's economic/tax plan. On the surface, this seems like a legitimate issue. In reality, it is lip service. The truth of the matter is that people are going to die.

Much of this chaos was caused by the leadership of the powerful institutions. This includes governments, executives of financial institutions, and other world leaders who failed "the people". I believe they are the ones with the blood on their hands.

It is politically incorrect to issue a call for violence. In many areas, it is crime to incite people in that manner. Yet the government, by their decisions can kill millions without recourse. These people need to be held accountable.

Food prices shot up over the last 6 months. This is a vital component of life. Since this increase, it is estimated that more than 100 million people worldwide entered into poverty. Surely, this will increase over the next 12 months. Many of these people are going to die. Of course, they are a long way from Wall Street, Washington, or London.

Even in the United States, there is a fair amount of poverty which will be experienced. It is always interesting to notice how the ones the government is suppose to protect are always affected negatively by them. Perhaps McCain and Obama could learn to understand what people are confronting by foregoing food for a week or so. Let them experience what their political games really cost people.

There is a revolution brewing. If things get much worse, we will see people start to take decisive action. The most dangerous person in the world is someone with nothing to lose. Starving people will take drastic action. Therefore, we will see an uprising out of the lower levels of society. At some point, they will awaken to the fact that the government is their worst enemy. A concept that the rest of us realize.

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America Is A Socialistic Nation

I read a blog this morning where the writer mentioned that America turned into a socialistic nation. This is a point that I will not debate because I feel it true. What struck me is this individual felt that it was a good thing and that we should just "deal with it". This is the point that I differ from this individual. Sitting back while happily accepting the shift to a failed system is not what I do.

Anyone who learned a bit of history knows that we became the richest country in the world in a few short centuries. We eclipsed all of Europe and Asia, nations that were around for thousands of years. The reason is because of the values of hard work, independence, and free market systems. Socialism contains none of these aspects. Under that system, the government provides all for the people. It might work in a country with 15 million people. However, when there are 300 million people to take care of, this is a recipe for disaster.

In my view, socialism deters personal responsibility. Since the government is the provider of all, it is the one responsible. Personal decisions are greatly reduced. We are seeing this here. The existing welfare state models this. For the check received each month, people are told where to live, what is appropriate food, and how much one can earn. The personal profit motive is removed.

Why do I detest this system so much? The reason I do is because I value freedom above all else. My belief is the government is inept at running things. Regardless of the people who are in office, the system is rigged for inefficiency and failure.

The recent bailout of the banks epitomizes how the government operates. We saw it fail to oversee the events occurring on Wall Street. This led to a crisis which costs the taxpayers billions of dollars. The fact that it happened with a Republican President shows how socialistic everything is. They are the party who promotes free enterprise, at least in theory. Sadly, the ones stuck paying for this mess are those hard working individuals who make the economy go. Do you think the welfare recipients are going to kick something in? Certainly not.

There is no accountability in government. An individual serves a particular term(s) only to ride off into the sunset. The wreckage left behind is not a concern to them. Often, they believe they did a terrific job. Do you think Jimmy Carter believes his Presidency was a disaster? Did Ronald Reagan think that his supply side policies would come back to haunt us 20 years later? I doubt it highly.

As for me, I am refusing to accept the recent swing towards socialism. This country was founded by people who took a stand against tyranny. We are witnessing the same thing today. However, this version is made up of King George, Queen Nancy, and Prince Harry. These are three of the most powerful people in Washington and the blame lays at their feet.

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Congress Bears No Personal Responsibility

Our government let us down. We live in a world where our leaders bear no responsibility for what occurs. The name of the game is "blame". Regardless of who is in power, there is always someone else at fault. This is how our pathetic excuses for leaders are. They delude themselves by their own false virtues.

This was exemplified by our present Speaker of the House, Nancy Pelosi. She was asked if Congress bore any responsibility for the recent financial crisis that is plaguing the United States (and the world). Her response was that they had no part in it. Are you freaking kidding me. The damn Speaker of the House is claiming that the United States Congress is innocent of all that occurred to create the largest financial crisis since the Great Depression. This is asinine. Here is a woman who needs a good dose of reality.

Another is that pathetic excuse for a leader Barney Frank. He is a very powerful man on Capitol Hill. His job was the oversight of Frannie Mae and Freddie Mac. For those who are unaware, the taxpayers had to bail these organizations out to the tune of hundreds of billions of dollars. Of course, Congress bears no responsibility for this collapse either. To believe that, we need to overlook the fact that Frank had a long-term affair with the head of one of these institutions. Is it any wonder why he resisted any attempts to reform these colossal failures?

America ought to be raiding Washington with rakes and pitchforks. It is time to wake up. If our leaders cannot show personal responsibility for their actions they need to be tossed out of office. The above examples happen to be Congressional Democrats. The same behavior is witnessed by members of the Bush Administration and Wall Street executives. These people are pathetic excuses for representatives. We need to do whatever we can to hold them to the fire.

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