I had written a while back about my opposition to the bailouts and how the companies that were on the receiving end were responsible for their own problems, that the bailouts were pushing their failures a little further around the road.
I had also said that the auto industry was already bankrupt but didn't have the guts to admit it.
Trillions of dollars and a few short months later, we begin to see the danger signs that I predicted back in October. CITI Group is about to be nationalized due to their continued massive losses; GM is exploring three bankruptcy options, in addition to their seeking an additional $16 billion on top of the $13 billion they've already received, and AIG needs billions more on top of the $150 billion it's already gotten from taxpayers.
And they're STILL paying out their multi-million dollar bonuses to their executives. Tactless.
The bailouts were a mistake from day one. The companies should not have been nationalized; government shouldn't have put taxpayers on the line for NEARLY as much as they have. I can see some interventions, but only to prevent crippling the national currency against other markets. I'd rather have been on the hook for $200-$250 billion instead of nearly $5 trillion.
Government's running wild and needs to get a grip. Knee-jerk reactions haven't helped; they've only made matters much much worse. GM needs to get under bankruptcy protection this week. Would CITI's collapse weaken the dollar? What about AIG's?
There are some very stark decisions that will have to be made shortly. I hope everyone's up to it, because the writing's on the wall, and decision time is nearly at hand.
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