OK … The Bush administration jumped in to help the financial services industry and now the auto industry. Non banks like Goldman and AmEx are now banks so they can tap tthe Treasury’s $250 billion bank rescue program, and on and on and on … is there anyone left? Oh You bet. Video below the fold.
By the way if you are looking for a reason not to bailout the auto industry, this at Motley Fool should do the trick.
Comparing a Detroit bailout to a financial-system bailout is, quite frankly, stupid. When auto manufacturers go out of business, we lose jobs. When the financial system goes out of business, we lose the economy. If GM fails, Chevy trucks won’t simultaneously explode. If AIG(NYSE: AIG) fails, financial markets will simultaneously explode.
But that isn’t the point. To justify a bailout, you’d have to make the case that doing so would get the industry back on a sustainable track. There’s no logic in bailing out companies if they’re simply going to blow through the cash and come back begging for more.