I’m sorry, I understand peoples desire to control and limit the outpouring of money, but the last thing Government knows how to do is run a company.
Take equity in exchange for loans to be repaid.
Do NOT put government in the business of trying to make a profit.
As I understand it taking equity in exchange for loans to be repaid is called banking.
The acute condition of the auto industry today (aside from its numerous chronic troubles) is the direct result and inevitable result of (1) the credit crisis, making it impossible for them to obtain loans in the usual fashion (as a forward-thinking Ford did last year), (2) the general economic collapse, and (3) the oil price spike of last summer.
The first two factors are the product of negligent misgovernment by the Bush administration and certain members of Congress, and by errors of the Greenspan Fed.
The third may or may not have come from unregulated speculation, the regulations having been removed by Republicans in Congress.
It seems entirely appropriate for the federal government to lend them the money needed for them to adapt to the new realities of the world economy, especially since the transition has been via shock, rather than via trend, as competent leaders would have managed it.
I’m sorry, I understand peoples desire to control and limit the outpouring of money, but the last thing Government knows how to do is run a company.
Take equity in exchange for loans to be repaid.
Do NOT put government in the business of trying to make a profit.
As I understand it taking equity in exchange for loans to be repaid is called banking.
The acute condition of the auto industry today (aside from its numerous chronic troubles) is the direct result and inevitable result of (1) the credit crisis, making it impossible for them to obtain loans in the usual fashion (as a forward-thinking Ford did last year), (2) the general economic collapse, and (3) the oil price spike of last summer.
The first two factors are the product of negligent misgovernment by the Bush administration and certain members of Congress, and by errors of the Greenspan Fed.
The third may or may not have come from unregulated speculation, the regulations having been removed by Republicans in Congress.
It seems entirely appropriate for the federal government to lend them the money needed for them to adapt to the new realities of the world economy, especially since the transition has been via shock, rather than via trend, as competent leaders would have managed it.