AIG and GM: A Double Standard

[mathpol]

Let’s see if I’ve got this straight. We bail out AIG and they use the money to make good on the credit default swaps they insured. (Although they didn’t call it insurance!) A lot of this money has gone to banks in foreign countries.

When it comes to GM, we want to force them into bankruptcy, which means a massive loss of jobs for blue and white collar workers, losses for bond holders and retirees, not to mention loss of market share.

Was Rick Wagoner, now GM’s ex-president and ex-CEO, guilty of risky practices, skirting the law, in order to make more money? No.

I’ve lived in the Detroit area for 38 years, and for as long as I can remember, the Big Three have been the favorite whipping boy of the liberal elite, with Al Gore being the number one “whipper“.

Sure, the Big Three didn’t adapt, and they and the unions negotiated contracts with big legacy costs, but ask yourself. Who suffers the most if they go under? Answer: The workers on the assembly line and automotive engineers. Not the likes of Rick Wagoner.

But hey, most of these people live in the Middle-West, which used to be America’s heartland, but is fast becoming a wasteland.

How can we be socialists if at the same time we are doing away with the proletariat?

[liberal N proud]

1. Signal sent: unions have to break contracts while bankers don't

[OregonBlue]

2. I disagree. Wagoner was a totally clueless asshole that thought the new CAMERO was going to save GM.

He needed to go. He cannot turn GM around. Maybe now that he is gone they will have a chance to save this company. Obama did the right thing.

[JohnWxy]

5. where-as AIG assumed lilabilities way in excess of their capacity to cover them.

They were so far off, it's hard to comprehend how they could get it SO WRONG.

Meanwhile at GM, Buick just came in tied for first in a J.D. Powers quality survey - ahead of Lexus. GM is not the only car maker in trouble. They all are, including Toyata and HOnda.

The trouble the car manufacturers are in is just an extension of the banks amazing mismanagement of risk. And not only are the car makers in difficuties - all businesses are hurting, it's just that the producers of products which require a loan to buy are hurt the worst. All because the banks didn't know WTF they were doing.

[JDPriestly]

3. How can we be socialists if at the same time we are doing away

with the proletariat? It's called Fascism.

Rick Wagoner is replaceable. GM will be better off with a new management team that can bring new ideas and doesn't have a fixation on struggling against GM workers.

Banks get to set terms and conditions for giving loans to businesses. They get to say "No" to a company if they don't like the company's business plan. In fact, they are supposed to say "No" sometimes. That's what went wrong with the sub-prime mortgages. The banks accepted bogus appraisals. They didn't set enough conditions before giving loans. So, the government is acting within its rights as a lender in setting conditions before lending.

[amandabeech]

4. My 89-year-old terminally ill bachelor uncle may be in trouble, too.

He's dying from a terminal disease and is in the hospital now.

He will take a hit on his pension and his health care, and he can't make it up by working part time. He can barely get out of a chair.

I say, who suffers most when they go under? Include many of the truly elderly retirees.

[notesdev]

6. This isn't socialism

It's called fascism. Government calls the shots at private companies, picks winners and losers. Moussolini would be proud that we still follow his example today.

[angryfirelord]

7. It's simple really

The government may own GM, but the banks own the government.