Monday, December 8, 2008

Auto Bailout. Where are the economic advisers?

Tell me. Where are the economic advisers, the accountants, the good economists for the United States when decisions like the bailouts are being made in Congress?

If we are creating a bailout for these large auto corporations at 5% interest, how is it that we are making an investment? The reason I ask this is that we are paying out at least 5% in interest to foreign countries on the money we are borrowing for these bailouts. Doesn't the country have a good accountant/economist who can advise on a higher percentage of interest for these loans so that we can actually make money on this supposed investment?

Besides the interest issue, what about the profit being made by GM on its overseas sales? Are they really in such desperate need of the taxpayers money?
"Now GM is looking at its own international stable, and has its eye on China as a source of stopgap revenue for its North American operations. We've posted before on the fact that GM's international operations aren't doing too badly, and GM China sold 11.5 million vehicles last year -- more than any other manufacturer there. This year, it expects China sales volume to grow by 11- to 12-percent, and that means yuan in the bank." -- autoblog

So, shouldn't GM utilize its overseas profits at this time, instead of getting a handout that is composed of our future tax dollars with an interest our country is currently paying other countries for the money?

Additionally, shouldn't there be a mandatory restructuring of these enormous bureaucratic corporations in order for them to receive a dime of our money? And along with the restructuring, wouldn't it be prudent that the CEOs and other exorbitantly highly paid executives of these companies (Ford, GM, Chrysler) be taking a mandatory cut in pay, to a pay scale that actually fits standards of someone who should be accountable for the success of their company(s)?

The desire is not that additional U.S. jobs be lost. The desire is for accountability and basic accounting in general.

What do you think? Do you support this "bailout"? Or do you have a multiplicity of questions?

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