Wednesday, July 24, 2013

Detroit Bailout?

A few years ago Wall Street Banks (who received the deregulation they demanded) proceeded to make the worlds dumbest decisions. The result was financial ruin. 

Washington came to the rescue with 787 Billion Dollars in Tarp Bailout money. It took them about 7 minutes to find the money. Republicans and Democrats (who agree on nothing) miraculously agreed Wall Street must be saved at all cost. So they started up the printing presses. They backed up the armored trucks and away the money went.

AIG was also in financial peril. AIG provided the insurance for the worlds dumbest decisions. They needed an additional 185 Billion dollars. For some reason we were told the planet would stop spinning if AIG no longer existed.

It was not even a problem. They start up the printing presses again. Backed up some more armored trucks and away the money went. Much of the bailout money was then used to pay corporate bonuses to the same genius executives who ran the company into the ground in the first place. We were told those bonuses had to be paid by law.

General Motors and Chrysler who bet they would make more money, with less American workers, ended up in bankruptcy. Their plan failed too. So they needed 80 Billion dollars (plus bankruptcy) to fix the mess they made. Not even a problem. Start up the printing presses. Back up the armored trucks and away they went.

Now Detroit is bankrupt and their workers (who did what they were told) were promised a pension but may lose everything. The tax base which was supposed to fund the pensions is now in China. The jobs are in China because our government allowed them to go there. They told everyone outsourcing US jobs would be good for our economy. They lied.

These Detroit pensions are supposed to be paid by law, but will they be? Of course not.

Now is Washington going to come to the rescue of Detroit with another bailout? Don’t be silly.

787 Billion for the banks was a yes. 185 Billion for AIG was a yes. 80 Billion for GM and Chrysler was a yes. 18 Billion for Detroit workers……Sorry there is no money for you…...

Is Obama going to Fly Air Force 1 to Detroit and stand with the workers? Nope. Is he going to make lots of speeches and bang his fist on the podium demanding workers be treated fairly? Of course not. Just like he didn’t go to Wisconsin when Union workers there were under attack.

Sure during an election it is all about workers and protecting the middle class. Makes for a good speech. But when it is time to govern it is a whole other tune.

Last year on Labor Day Obama was in Detroit touting the great Detroit comeback. It was a nice speech. Unfortunately speeches are not reality. The reality is that great American city is now Bankrupt.

Detroit is just the beginning.

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