Quote:
Originally Posted by Dimnos
Yes keeping the money circulating is going to help the economy; but giving an ass ton of money out of peoples pockets to a bunch of ass pipes with zero fiscal responsibility is just irresponsible. Big companies with a lot of debt go under, get chopped up and then the pieces get bought up by smaller companies every day. Its what makes the world of capitalism go 'round. Sometimes these big companies can sell off small pieces of their company to actually make enough money to get out of debt and survive on their own. In some cases the "parent" company bounces back so well they are then able to buy back the portions of their company they had to sell off. While they are not the only ones to do so, the phone companies do this all the time. As far as these companies causing a domino effect had they gone down... maybe, maybe not. In the business world their are winners and losers. If you make good business decisions you succeed. If you make bad business decisions you fail. And what about their competitors? The ones who did practice good business and succeeded in keeping their companies afloat. They now have to compete with basically the government. How are they expected to survive? They have to go down and get shit canned because they acted responsibly with their companies and resources and didnt need the government to step in on their behalf? Basically we are punishing hard work and rewarding irresponsibility. Executives who managed responsibly begin to ask "Why the hell bother" and turn to corrupt and bad business practices themselves. If we are not going to allow companies to fail, and are going to bail them out with money from our own pockets, we should require their shareholders vote out current executives and vote in new ones. If for no other reason than to send a message that bad business practices will not be tolerated.
Health care reform is something that need to be looked at. We should have spent that $800 billion on that.
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I hate to say it but this is kind of a moot point because no one wants to buy up these companies. These toxic assets and credit swaps are total trash they have negative values they're completely unusable. When these companies fail, no one benefits. No one gets goods for cheap and turns it around, no one picks up valuable assets, it just leaves a giant hole in the economy where there used to be money spent and it scares everyone it doesn't touch because its happened to people they thought would never fail so they dont think anyone can pay them back. This government is buying up these toxic assets so the companies can exist to pay off their debts. Hell, we let Lehman Brothers fall and it was a huge catastrphy. It immediately killed AIG and other business. No one wanted to buy their crappy "assets" so the government ended up giving them 2 dollars a share. The problem is these people fucked up so bad there is no way of profiting on it, only minimizing the damage. The Free Market could not possibly heal this wound without us entering another depression.
The Government isnt going to continue to run these business forever giving them the edge over competition they're going to hold on to these shares until theyre worth something again and then sell them back to the private sector.
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