There are many pundits on both sides of the political spectrum opposed to the bailout in the basis that it will put the nation on a slippery slope to to so called 'socialism'.
But this couldn't be further from the truth; the bailout of Ford and GM would hardly signify the beginning socialist transformation whatsoever. Why? There are over 5,000 companies on the nasdaq and NYSE. The government has only bailed-out just a tiny handful of them; a few mortgage companies such as Fannie, Freddie. Thats it. The vast majority of public companies that fail, do so quietly without the slightest assistance from the government. Far all this blabbering about socialism and corporate welfare only five or so of all publicly traded companies have been bailed out.
To put this in greater perspective 95% of small businesses will fail within five years. How many of these will get a government bailout from so called 'tax payers'? None. Every year thousands of small businesses fail, taking the livelihood and dreams of their founders along with it, and with the bailout of Gm and Ford this sobering statistic won't change. Failure will still be an option for most businesses, and a very probable one at that.
The economic benefits of rescuing GM and Ford would be immense. For a paltry $25-50 billion such a rescue plan would likely cause international stock markets to surge, adding TRILLIONS of dollars in market capitalization, boost investor confidence, and thus encouraging even more buying. Furthermore, the dollar would plunge and the Euro and oil would rally, which directly benefits the economies of the US and Europe. US exporters profit immensely from a cheaper dollar, as do European importers. In fact, Germany entered a recession and this can be attributed partly to a rising dollar. Bailing out Gm and Ford would help alleviate these economic problems by manipulating the currencies. The fall in the dollar and rise in the Euro would translate in to hundreds of billions of dollars in further export related revenue, making the $25-50 billion dollar bailout a good investment in retrospect.
Failure to rescue Ford in Gm would result in a sudden global stock market plunge, a surge in the dollar, a plunge in oil, dashed investor confidence, and up to three million unemployed workers. Also, Obama would lose many potential votes in the swing states in the 2012 election because he would be held accountable for the failure of these companies.
There is also a myth going around that is perpetuated by moonbats and winnuts that somehow taxpayers will have to pay the tab on this bailout. Taxpayers won't pay a penny for the 750 billion dollar bailout, nor did they pay a penny for the Iraq war, the occupation, and the tax payer won't pay a penny for the auto bailout either. Tax payers have been paying the SAME taxes under Bush's original tax cuts since 2001 before all this spending. The money is free because China is holding our debt, and will continue to do so. It's a symbiosis that allows the US to spend its way out of recessions and keep the economy chugging along in an era of perpetualistic, continuous, uninterrupted growth and prosperity.
But this couldn't be further from the truth; the bailout of Ford and GM would hardly signify the beginning socialist transformation whatsoever. Why? There are over 5,000 companies on the nasdaq and NYSE. The government has only bailed-out just a tiny handful of them; a few mortgage companies such as Fannie, Freddie. Thats it. The vast majority of public companies that fail, do so quietly without the slightest assistance from the government. Far all this blabbering about socialism and corporate welfare only five or so of all publicly traded companies have been bailed out.
To put this in greater perspective 95% of small businesses will fail within five years. How many of these will get a government bailout from so called 'tax payers'? None. Every year thousands of small businesses fail, taking the livelihood and dreams of their founders along with it, and with the bailout of Gm and Ford this sobering statistic won't change. Failure will still be an option for most businesses, and a very probable one at that.
The economic benefits of rescuing GM and Ford would be immense. For a paltry $25-50 billion such a rescue plan would likely cause international stock markets to surge, adding TRILLIONS of dollars in market capitalization, boost investor confidence, and thus encouraging even more buying. Furthermore, the dollar would plunge and the Euro and oil would rally, which directly benefits the economies of the US and Europe. US exporters profit immensely from a cheaper dollar, as do European importers. In fact, Germany entered a recession and this can be attributed partly to a rising dollar. Bailing out Gm and Ford would help alleviate these economic problems by manipulating the currencies. The fall in the dollar and rise in the Euro would translate in to hundreds of billions of dollars in further export related revenue, making the $25-50 billion dollar bailout a good investment in retrospect.
Failure to rescue Ford in Gm would result in a sudden global stock market plunge, a surge in the dollar, a plunge in oil, dashed investor confidence, and up to three million unemployed workers. Also, Obama would lose many potential votes in the swing states in the 2012 election because he would be held accountable for the failure of these companies.
There is also a myth going around that is perpetuated by moonbats and winnuts that somehow taxpayers will have to pay the tab on this bailout. Taxpayers won't pay a penny for the 750 billion dollar bailout, nor did they pay a penny for the Iraq war, the occupation, and the tax payer won't pay a penny for the auto bailout either. Tax payers have been paying the SAME taxes under Bush's original tax cuts since 2001 before all this spending. The money is free because China is holding our debt, and will continue to do so. It's a symbiosis that allows the US to spend its way out of recessions and keep the economy chugging along in an era of perpetualistic, continuous, uninterrupted growth and prosperity.