Quote:
Originally Posted by cnredd
And here is the error in your comparison...
What we are seeing now is NOT A LOAN...
It's a takeover!...  
IF...IF IF IF IF IF...The government handed over TARP (or any other) loans to Chrysler and they ran their business where they either defaulted on the loans or paid them back in full, you'd have a viable comparison...
But that's NOT what is happening...
In your scenario of Carter's era, they government did NOT interfere with the day-to-day operations...nor did they influence company policy (or in this case, dictate)...
They simply said "Here's some money...get your ducks in a row and pay us back." (and through the brilliance of Iacocca, someone who was NOT forced into the position by the government, took the ball and ran with it...like a champ)...
Not anywhere close to what's happening now...  |
As I stated..The Chrysler Bailout was "government involvement",
perhaps not at the level we see today but none the less..
it was involvement! At that time the situation though similar,did not rise to anywhere near what we are seeing today.I still believe we must not let the auto industry fail.
I would have preferred simply backing a loan to them as opposed to directly financing them! To be sure...the first "bailout" is a far cry from what we've seen today but to simply let Chrysler and GM fail without .."even minimal" intervention would be capricious and irresponsible.