Chris Moody

Entries tagged as ‘Bailout’

Boycott GM?

June 9, 2009 · 9 Comments

Limbaugh called for it recently, and only 42 percent of Americans who own an automobile made by General Motors say they are going to buy one again. All of this, of course, makes the left so gosh darn mad.

As an urbanite, I own a Chinese-made scooter and a bus pass. But if I were to buy a car, GM would be the last place I look, on principle. For anyone who is not keeping score at home, that includes Chevy, Buick, Cadillac, Daewoo, Holden, Saab, Pontiac and Saturn.

Before we know it, we will hear calls that it is our patriotic duty to buy GM cars, just as it’s “patriotic” to pay taxes. Baloney. It’s my “duty” to find the best product at the best price, and reward the company who makes that product with my patronage. That is how I’ve always done it, and that is how I will continue, whether I’m buying a car or a box of tissues to wipe away my non-existent tears for General Motors.

General Motors went the way of the buffalo for a reason. They couldn’t hold their ground against the unions, they produced cars that people didn’t want to buy and then they had the gall to fly into Washington looking for a handout.

Lest we forget, Ford, an “American” company, plays by the same rules and they are doing relatively well. Of course, Ford is in for a long haul. Since GM is being propped up by the government, (first by Bush and now Obama), the administration is not going to allow it to fail. It will tamper with the market to ensure GM does well. At some point, Ford will have to capitulate. Since there is no longer a level playing field, Ford may be swallowed up by the unfair system and, at risk of bankruptcy, may have to seek government intervention.

But of course, that’s all part of the plan, isn’t it? Create a market so rotten that everyone needs government assistance. You bail them out, take control, and push them toward partisan agendas.

Lest we so quickly forget, it was Bush who started this whole thing. Bush bailed out the banks. Bush bailed out the automakers. He set the precedent for all of this.

As Gary Lloyd wrote, “When the government’s boot is on your throat, whether it is a left boot or a right boot is of no consequence.”

There is a boot at our neck, and our watchdogs are snoozing.

Update, from Bryan Garst: Buying GM at this point is an implicit endorsement of government intervention. We are not boycotting for “political gain” as alleged, but to show that we do not accept dangerous interventions into the economy and the destruction of private contracts and the rule of law.

Categories: Bailout · Big Government
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Obama Planning to Cap All Executive Pay

March 21, 2009 · Leave a Comment

I held my tongue when the Obama administration said it would cap pay for bank executives receiving major bailout funding. After all those guys deserved it for putting their snouts in the public trough.

But this is terrifying:

The Obama administration will call for increased oversight of executive pay at all banks, Wall Street firms and possibly other companies as part of a sweeping plan to overhaul financial regulation, government officials said…

The administration has been considering increased oversight of executive pay for some time, but the issue was heightened in recent days as public fury over bonuses spilled into the regulatory effort.

The officials said that the administration was still debating the details of its plan, including how broadly it should be applied and how far it could go beyond simple reporting requirements. Depending on the outcome of the discussions, the administration could seek to put the changes into effect through regulations rather than through legislation.

One proposal could impose greater requirements on company boards to tie executive compensation more closely to corporate performance and to take other steps to ensure that compensation was aligned with the financial interest of the company.

The new rules will cover all financial institutions, including those not now covered by any pay rules because they are not receiving federal bailout money. Officials say the rules could also be applied more broadly to publicly traded companies, which already report about some executive pay practices to the Securities and Exchange Commission.

There were those who said it would come to this. I mistakingly disagreed, hoping for the best in our new president. Guys, this is severe.

Thanks to Jason Pye for the info.

Categories: Barack Obama
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The Economics Professor You Wish You Had

January 26, 2009 · Leave a Comment

Bombarded by bailout talk? Here’s some ammunition to fight back, from Dan Mitchell.

For some background, here’s a quick lesson on Keynesian economics

Categories: Bailout
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A Constantly Updated List of Everyone Looking for a Bailout

January 26, 2009 · 1 Comment

Gimme Gimme Gimme!

Club for Growth has started a Twitter feed of everyone asking for a bailout. Like a snow falling in a Washington blizzard, just put out your hand in this city and there’s a chance money will land in it.raining-money

Categories: Bailout · Big Government
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The Nerve

December 23, 2008 · 4 Comments

Chrysler took out a $100,000 ad in The Wall Street Journal thanking the country for bailing them out. Radley Balko says it best:

Chrysler spends $100K on a full-page ad…thanking American taxpayers for a bailout most of the public opposed, Congress never approved, and that you average taxpayer had no choice but to help fund, lest he go to jail.

Mark Cuban chimes in as well:

Does it make it worse that its a business publication where the readers might just recognize the stupidity of wasting money on ad dollars that doesn’t even try to sell the product ? How does it make the next unemployed Chrysler worker feel that their entire year’s salary just went for a single, ridiculous ad ?

I think a donation to the future George W. Bush presidential library is more appropriate, since he’s the reason they got a bailout in the first place. As I’ve said before, the American people said no, Congress said no, and then somewhere along the way, Bush became Emperor.thankyouamerica

Merry Christmas Big Three….er…I mean UAW.

Should look more like this:

shittycars1

Categories: Big Government · Financial Crisis · Politics · Republican
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Washington Post: More Than Half of Us Are Crazy

December 16, 2008 · Leave a Comment

Conn Carrol rightly points out:

Washington Post assistant managing editor Eugene Robinson believes that anyone who opposes a federal government bailout of General Motors and Chrysler is a ‘lunatic’. So how does The Washington Post deal with the fact that their latest survey shows 55% of the American people oppose that very bailout? Well you bury it on page D08 of course:

Majority of Public Opposes Auto Rescue
Poll Finds Most Blame Industry for Problems, Believe Failure Won’t Hurt Economy

By Jon Cohen and Jennifer Agiesta
Washington Post Staff Writers
Tuesday, December 16, 2008; D08

Most Americans continue to oppose a government-backed rescue plan for Detroit’s Big Three automakers as majorities blame the industry for its own problems and are unconvinced failure would hurt the economy, according to a new Washington Post-ABC News poll.

Overall, 55 percent of those polled oppose the latest plan that Chrysler, Ford and General Motors executives pitched to Congress last week, on par with public opposition to earlier, pricier efforts. But with 42 percent support, the new request for up to $14 billion in emergency loans has more backers than previous proposals to secure up to $34 billion in loan guarantees.

Great find, Conn.

Categories: Bailout · The Media
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When asking for charity, don’t show up in your private jet

November 20, 2008 · 4 Comments

jetDan Milbank nails the auto executives who arrived in Washington this week, hat in hand, asking for a $25 billion bailout from the federal government. Oh yeah, and they all took their own jets from Detroit. As my Southern Baptist Preacher father would say, “That’s just poor stewardship.”

The executive’s arguments hold no water, in my opinion. Here’s their argument:

It was a display of stone-cold tone-deafness by the automaker chiefs. In their telling, they have no responsibility for the auto industry’s current mess. Threatening the nation with economic Armageddon if they are not given government aid, they spent much of the session declaring what a fine job they’ve been doing in Detroit.

“Chrysler really is the quintessential American car company!” Chrysler’s Nardelli boasted.

“We have products that are winning car and truck of the year regularly,” General Motors’ Wagoner proclaimed.

“We are equal to or better than Honda and Toyota,” Ford’s Mulally added. “Every new vehicle that we make, whether it’s small, medium or large, is best in fuel efficiency. The given is safety. And we have more, at Ford, more five-star quality and safety ratings than any other automobile.”

Committee Chairman Barney Frank (D-Mass.) cut him off. “Thank you, Mr. –”

“And the best value!” Mulally blurted out.

“Commercials can go later,” the chairman proposed.

The whole things sounds like a circus.

No bailout for the automakers.

Categories: Bailout
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