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All Pinzur, All The Time

Tuesday, December 02, 2008

Bailouts, not just your average 8-letter word anymore

Bailouts seem to be the fashionable thing for industry execs these days. When the economy is doing well, these bastards have no problem raiding their own companies for every extra perk they can drain out of it, but as soon as the economy turns these same execs are asking for help or their company will fail. The sad thing, as a staunch capitalist, I have no problem with the most recent bailout of Citigroup. The fact that the federal government has equity staked in the company means that if it succeeds, the government gets money back when it sells the stock, plus Congress has final say over salary disbursements. It took Congress until the end of two-thousand fucking eight and AIG to plow through the GDPs of countries to realize that prior to giving away billions of dollars that they should probably, you know, throw a few stipulations on to the money they hand over to the same people who fucked it all up in the first place.

Now we have the auto industry begging for money like a mayor turned crack addict on the streets of Washington D.C. They are claiming they need money or the venerable companies could fail and what an awful thing it would be to have auto workers out of work. And as much as I agree that it would be awful to see these people lose their jobs, the unions they are a part of has priced them out of a job. Unions use to have great value. When the workers were in plants where safety was throw out the window and they were making enough money where they could barely afford air let alone shelter and food. Unfortunately the day of the Union has come and gone for many of them, now all they argue with is the increase of wages for its workers, which has killed them come 2008. It seems capitalism may have snagged a new victim in modern days and these companies will have to be sold or merge together to afford to survive.

Then there is my favorite industry asking for a bailout. The very same people who caused this fantastic economy that we are in today, the Home Builders. The clueless jackasses had the audacity as to go before Congress and suggest that because of the economy they caused and the struggles they are subsequently dealing with, and because they took absolutely NO precautions in thinking that they greatest real estate boom in the history of the United States could eventually end, that they should too benefit.

These companies should have to fail and deal with the consequences like every other company that cannot withstand a downturn in the economy. You know why we know the names of certain companies like GE, IBM, McDonalds, Coca-Cola and Disney? Because those companies have been able to withstand economic downturns and succeed in robust economic stretches. Is it because the company sells a better product or offers a better service? Perhaps, but not definite. I would say it is because the defining principles of capitalism are that the strong survive and flourish and the weak cease to exist. To those homebuilders, I hope you enjoyed the good times when you thought you were the greatest thing to happen to this country, cause you will be remembered for you pleading for your company's life in embarrassing fashion. Yay for Capitalism! Eventually everything evens out.

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