Comments on: Bailouts are Unfair to Those Who are not Bailed Out

By: larster

larster — Tue, 02 Dec 2008 16:50:29 +0000

Two things

-How come we do not hear anything about who holds the GM and Ford Debt? There has to be a great deal of pension fund, insurance co. exposure here.

-How can you consider bankruptcy for GM/Ford when the credit markets are frozen? I have this scenario whereby our astute politicians do not “bailout Ford or GM” and place them under bankruptcy protection. Their sales plummet and they go into Chapter 7 (remember nothing is being done for the consumer that purchases cars). The parts makers and other suppliers are left holding the bag, so to speak, and they come running for their bailout. Now we are forced to bailout them to save the foreign transplant manufacturers. Talk about calling out the National Guard!

By: john

john — Sun, 30 Nov 2008 21:38:01 +0000

> Better they should go through the bankruptcy process [...] than that the US government should subsidize unionized auto workers. I can think of $40,000,000 that could very easily be renegotiated right off the top before going anywhere near a union wage, pension or retiree health care program. And that's only five people. Those at the top of this pyramid are dangling that huge number at the bottom over the edge to lure in politicians. Are union members well compensated? Sure. Should Rick Wagoner have a job that would cover 200 people at $70k/year? Should he even have a job, period? Ab-so-f'n-lute-ly no.

By: Mark

Mark — Sun, 30 Nov 2008 12:21:04 +0000

As this mess continues I think about what the next shoe to drop is. Obviously credit cards, but what is beyond that? Not terribly insightful but I think we are at a tipping point for pension funds and retirement benefits. In times like these where mtm accounting is broken, I fear that pension funds are going to be the next to stick their hands out for a piece of the great bailout. These fund managers can easily follow a progression like you laid out above. The social impact could be huge as more retirees start reach the age where they draw benefits. If the benefit they expected is suddenly dramatically lower, who is going to pick up the slack? The first place everyone will look to is our government and I think they will listen.

By: Kurt Osis

Kurt Osis — Sun, 30 Nov 2008 08:14:22 +0000

Sorry to be such a troll but:

Since when was fairness on the table? Ever since DJ stole the fun size m&m’s from my lunchable in 1st grade, I have had the sneaking suspicion that life, in fact, may not be fair. If it is in fact fair then can we use Goldman’s bonus pool to bail out GM?

Ethics are always arbitrary and can therefore be assumed away, so to speak.