Tuesday, December 9, 2008


Call it what you like, even the "loan" being pondered for the "Big 3" U.S. Auto companies is just a bailout.

Here's what keeps bothering me about the bailouts of the banks, auto makers, and anyone else: The worse you perform, the more egregious your failings, the greater your payoff from the government. Take a look at the auto industry. The proposals on the table today have Chrysler and GM getting much more money than Ford. Why? Because Ford hasn't screwed things up as badly as the other two. Isn't Ford the better investment? I understand why GM needs to survive, but please.....

The banks are no different. The big bailout payouts are going to the most screwed up banks, while Wells Fargo, who performed well through all the chaos, gets nothing? I think I'd rather give the money (or maybe just the market share) to banks like Wells Fargo, who are less likely to need more bailout dollars again later.

Just remember, government taking away the chance for ultimate failure, also means they take away the chance for ultimate success. This applies to individuals as well as businesses.

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