CAR CZAR! SOUNDS LIKE A BAD DR.SEUSS STORY! WHAT IS WITH THE BAILOUT!?!

The bailout of the “Big 3” (with Ford ever in the shadow of dipping their hands in at any moment) has been approved! Some people have been advocates while others bitter proponents. Time will determine whether or not this decision was worth pursuing. What has this decision’s consequences mean to the future to Rucking Fidiculous?

I am old enough to remember waiting on lines during the oil embargo of the early ’70s. Nightmares of getting up 4AM in order to line up for whatever gasoline might be available. Illegally parking in the streets until the station would open. As a pre-teen, I was shocked to see fist fights over drivers accusing one another of cutting the line. The chaos caused by the embargo had sparked society’s awareness that this path of fossil fuels compromises our way of life in many, many ways. The American car companies were staples of industry and were a clear barometer into the economic situation.
During the later 70s, pollution control became a higher priority. Caught off guard, the auto makers were incapable to transitioning their assembly lines quickly enough to address the new standard. Also, the desire to increase gas mileage became paramount. The auto companies coped while Chrysler croaked. In Chapter 11, Chrysler eventually pulled through to become successful enough until now.

The Middle East conflict was never far from anyone’s mind since the Arabs felt the embargo would coerce the West to support their cause. Many college students were perplexed about what direction their support should move. Many of their parents views were shaped by the generation involved in WWII. Everyone knew someone from the wartime. Support for Israel was unquestioned because of the Jews plight from Nazi Germany. The 1960s brought out the hippie view which brought Civil Rights into everyone’s living room via TV. Any oppressed people become the focus of the movement. When the Palestinians took radical steps to generate attention, they were influenced by the reaction society was having from the Civil Rights. Riding the coattails of radical 60s icons, the terrorists put their cause to the forefront of the evening news during the 70s. People took notice and started to question support for Israel. The oppressed people must be the Arabs since they are so moved for their cause. Oil became the fuel for the Arabs for political gains. Today, Arab oil has lost its luster and is solely used for supporting terrorism and bolstering the population boom in the Arab world.

Throughout the 80s, the US auto makers constantly played catch up. Troubling years and low gas prices led to little memory of the hardship the embargo caused. Technology was moving forward, but not at the pace the Generation Y members are accustom to. Advances in anything today are done at sprinting speeds. One can rest assure that next year computers will be faster. That internet programs will have upgrades. That the iphone will only get better!! I love the iphone!

The car companies today are giving people flashbacks of a more troubling time. Tired of the reported turmoil between Unions and the CEOs, the current frontpage news is leading a backlash towards the fighting. Most people have been listening to Al Gore soapbox the green future. He was a global warming cohort. As the environment becomes an ever important resource, he yelled the US is the big criminal in spilling environmental distress. Deliberately igniting anger towards the US, Gore fueled feelings of disgust around the world to an audience which already had tremendous contempt for this country. When gas prices skyrocketed, he shouted at US automakers for not keeping up with Toyota and their move towards hybrids. All evidence showed the vehicles Toyota made were not financially viable for most. When the Big 3 were asked about what will they do to compete, they answered the technology is not good enough to create an all electric vehicle with financial responsibility, reliability, and responsive to the American driving patterns. The Big 3 have made some hybrids in the meantime. The biggest argument for answering the financial viability was the increased gas price. The high cost of oil sparked a revolution in green tech. It became a potentially profitable alternative. This sparked Wall Street interest! But now that gas is plummeting…

The interest in investing in green tech is disappearing because it is no longer financially attractive. The world has fallen from good times to a new recessionary period, possibly leading to a depression. Money for research is drying up fast! No one will ever settle for the status quo. Therefore, green tech is the future. But maybe not appropriate for the present. Maybe the Big 3 were right all along about the tech for the green car not being ready today. The Chevy Volt shows they are taking the direction seriously and will make it available when its timely. Until then, I think Gore should shut his pie hole. I think Obama should stop telling the coal industry and power plants that run this country that unless they convert to green tech he will fine them. Maybe when the US starts referring to a car czar for fiscal responsibilty, we can start seeing that when the business world is ready to present the green tech we want, they will. Leave the Czar in Russia! The bailout is done, like it or not. Leave the government out of their business.

Bush and the Bailout: The Politics of Betrayal

President Bush announced today that he is offering $17.4 billion in loans to Chrysler and GM because letting the automakers fall would send our economy into a “deeper and longer recession.”

This girly-man move goes against a central pillar of western capitalism – creative destruction. The Austrian-school economist Joseph Schumpeter popularized and used the term to describe the process of transformation that accompanies radical innovation. In Schumpeter’s vision of capitalism, innovative entry by entrepreneurs was the force that sustained long-term economic growth, even as it destroyed the value of established companies that enjoyed some degree of monopoly power.

I’ve always maintained a solemn respect for President Bush and the belief that history will judge him favorably, particularly his decisions involving the war and, more generally, the global war on terror. However, on probably one of the most important issues of his Presidency, he has decided to let the voices of his conservative base fall on deaf ears in order to prop up the uncompetitive U.S. automakers.

Essentially, he has folded like a cheap lawn chair, and my respect may fold alongwith.

Bush and the Bailout: The Politics of Betrayal

President Bush announced today that he is offering $17.4 billion in loans to Chrysler and GM because letting the automakers fall would send our economy into a “deeper and longer recession.”

This girly-man move goes against a central pillar of western capitalism – creative destruction. The Austrian-school economist Joseph Schumpeter popularized and used the term to describe the process of transformation that accompanies radical innovation. In Schumpeter’s vision of capitalism, innovative entry by entrepreneurs was the force that sustained long-term economic growth, even as it destroyed the value of established companies that enjoyed some degree of monopoly power.

I’ve always maintained a solemn respect for President Bush and the belief that history will judge him favorably, particularly his decisions involving the war and, more generally, the global war on terror. However, on probably one of the most important issues of his Presidency, he has decided to let the voices of his conservative base fall on deaf ears in order to prop up the uncompetitive U.S. automakers.

Essentially, he has folded like a cheap lawn chair, and my respect may fold alongwith.

ECONOMIC BILL FAILURE FOR ALL PART I

The latest passing of the bill that was supposed to save America and the economy (of the planet) has fallen flat on its face. Noone can determine the reason its passing hasn’t addressed a falling market. All the experts on Wall Street and the Politicians in Washington couldn’t put Humpty Dumpty back together again …..and can pay anyone to pick up the pieces.
The answer is multifactorial because the intertwound nature of the ecomony. First, when Congress proceeds to “pork up” a Bill in a crisis situation, the public sees the seriousness has not been prioritized for no earmarking. Poor taste and poor judgement was demonstrated and public disgust soon followed. Secondly, the pork itself was shameful in what I see as a “nickel and diming” of the tax payer. People were benefiting from the bill by embezzling funds to ancillary groups completely unrelated to the situation at hand. Third, the Bill addresses the bank failures, job losses, and economic slow down strictly by “throwing money at the problem” by bailing banks out. And ONLY banks. The average person has no relief immediately, if ever. The problem is seen initially as a liquidity issue. The last thing anyone or any business needs is more available credit. Credit is the reason we are in the predicament currently. Of course, specific situations require available funds, such as college tuition. But is anyone looking at automobiles or boats, much less buying them.
While I am not necessarily an advocate for FDR-era policy, I believe the answer for today’s fiasco can be found in our history. The modern “NEW DEAL” should consist of helping the ENTIRE economy while putting the country’s best interest for the future in the crosshairs.
The Bill should have been geared towards the infrustructure of the country. Building new roads and repairing old ones, construting new bridges and initiating the new green energy installations to alleviate fossil fuel dependence would be . Each item scrutinized by by-partisan committees which oversee any abuse (although an independent third party would be ideal). Each project done in cooperation with private business. MOST IMPORTANT: Only citizens of the US get on the payroll!! We lost jobs to outsourcing and now we must ensure jobs created are for only legal citizens. Stipulations in the bill for people to cash checks from these jobs would include opening or maintaining banks accounts. Therefore, liquidity would be created without the bailout.

IN PART 2: DISCUSS SPECIFIC PORK PROBLEMS WITH THE BILL PASSED
MORE IDEAS FOR ECONOMIC RECOVERY