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alstry (35.75)

There is no chance of an AUTO BAILOUT

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December 10, 2008 – Comments (3)

Giving the Autos $15 Billion dollars is like giving a drunk a few shots of vodka to cure alcoholism.  First, the amount is too small, and second.....it doesn't address the issue of a poorly structured balance sheet including off balance sheet union liabilities.

You are watching your tax dollars get wissed down the wisser.

My friends......I am not predicting a rehash of The Great Depression....I am forecasting THE GREATEST DEPRESSION.

Unless we deleverage practically every State, County, City and most businesses and individuals....we are only making a very deep hole even deeper.  This time there is no one out there to throw us a life line......the buzzer has sounded.  Not banks, not foreigners, not Uncle Ben....he is getting tapped out as well.

At this point we must either print with few limits or restructure......for all of our sakes......let's hope the latter prevails or all of our savings will be worthless......but that wouldn't be the end of the world.....it might make interesting wall paper.

As far as an Auto Bailout.....its tough to revive a bankrupt company with a poorly structured balance sheet and poor business outlook to boot with only a fraction of what is necessary for restructuring.  Any guesses when this nonsense gets derailed.....Tomorrow or Friday???

3 Comments – Post Your Own

#1) On December 10, 2008 at 4:44 PM, jegr5347 (< 20) wrote:

Jay Leno said it best last night, its like someone who owes trillions of dollars barking at someone who owes billions of dollars, outright hilarious.

Make no mistake, the bailout will pass Congress just like TARP. I say that they will continue throwing dollars at the automakers until they either cure themselves or the US defaults on its debt. The last ones to find out that the automakers don't need anymore loans or that they can't provide any more loans will be the government itself.

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#2) On December 10, 2008 at 6:21 PM, Dart65GTConv (< 20) wrote:

  A little failure here and there is painful and productive. Too much at once can cause breakdown and real misery. The latter gives opportunity to far fewer

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#3) On December 10, 2008 at 6:26 PM, Dart65GTConv (< 20) wrote:

  To add, the most unworthy.

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