To Bail or not to Bail.
Today we are living in "tough times". The term "tough times" has come up several times due to our nations current financial crisis. But my question is what defines a crisis? And when does a crisis turn into something even worse? We are all aware of our country's great depression. Those words seem as dangerous as saying bomb on a plane now a days. But this is due to the reality that our country is facing. With the financial companies and auto industries failing the question becomes a 2 headed monster. First, do we bail them out? Or do we do as any Adam Smith follower do and , let the system fix itself? Worst case scenario is one that I think we'd all like to steer from. The leaders of the " Big Three" auto companies(GM, Ford, and Chrysler) went before congress earlier this week pleading for a 25 billion dollar bail out. However, they were sent home (in their own private jets) with the horrible taste of rejection in their grey poupon until they can come up with a viable recovery plan to present to congress. The Big Three pleaded their case stating that they are on the risk of collapse and could cost millions of Americans their jobs. The United Auto Workers president, Ron Gettelfinger, said on Thursday that politicians needed to take immediate action on a $25bn bridge loan bill to support the US car industry, otherwise he said one or more firms could fail(http://news.bbc.co.uk/2/hi/business/7740670.stm). Congress has already passed a bill costing 700 billion dollars to bail out the financial industries, posing a question, when does it stop? When have enough of the tax payers money been spent on the poor business decisions of executives still affording the luxuries of private jets? Do we let the market fix itself? Or do we continue to spend billions of dollars? What we do know is something needs to change.