Sunday, December 14, 2008

Recession and Bailout

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As I told before one or another way the Automakers will receive the money they crying for. Do they really need them? If their business has become unprofitable the bailout will not help but only will delay the dead end. How to become profitable - almost impossible because for that the wages has to be cut in half and autoworkers union will not let to do it, they would rather let it crush than give their power away. I think that after automakers receive money they will continue to layoff people and ask for more money. It could be the best to let it go. Yes, some companies will crush, yet, if there is a demand on the cars, somebody will replace them. If there is no demand on the cars then no bailout help them - it's simple - then it's only waste of time and waste of money. The excuse that other businesses will be damage is wrong. Only those businesses that oversupplied the market will be damaged. If people stop buying new cars then they will start to repair the old cars, that means that there is still going to be demand on the car's parts and it is going to boost new repair businesses which still will need car parts. Yes, some drillers will be shut down, but do we not need so many of them?

Recession is a process of "natural selection" when overweight animals die. This is not the end of the evolution. When lazy, fat, spoiled animals die it clears pass for new blood, for strong, creative, not spoiled youngest who desire to work and get to the top.

$60 Billions is $10K for 6 million people - it's about 4 million families (about 10 millions people) may survive for a year. Think about that. Instead of helping the dying from extra weight animals these money could be spend to help people to survive the recession, to boost new businesses, to create new jobs.

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