The End Of An Industry

Recently, General Motors shares hit levels that had not been seen since 1946. Meanwhile, Ford is less than a dollar issueside(a) from penny-stock status. Daimler, Chrysler’s minority shareholder, has reduced its interests to…zero. “‘As GM goes, so goes the nation,’ the old saying went. Lets hope they werent cosmos knockout” (Housel). In the wake of the current pecuniary crisis, American railrailway carmakers hold back been clamoring for a piece of the $700 jillion pie. wherefore not? sexual congress has already shown its propensity for giving away taxpayer dollars to needy corporations wish American International Group. In fact, raze strong banks uniform Wells Fargo and JP Morgan Chase affirm been attached nine-figure injections from the Treasury. So wherefore not help the struggling auto-giants? They’re too life-sized to fail, right? Well, not quite. Contrary to normal belief, the United States is not a socialist country . furthest I chequered , we static believed in capitalism. And since we’re still capitalists, the government cannot outlet taxpayers’ money like candy at Halloween to corporations whose bad monetary policy was their own undoing. In fact, Detroit auto executives have the brass to equate their situation to the near analyse of the financial markets.

However, analyze these two events is frankly quite stupid. The financial trouble of the car industry is nowhere near as dire. When auto manufactures go out of business, we lose jobs. When the financial musical arrangement goes out of business, w e lose the economy. To put it simply, if For! d fails, Lincoln Navigators win’t start imploding. However, if AIG fails, financial markets will implode. But that is not the point. In order to justify a $25 billion bailout, automakers would have to make the claim that the industry could dispirit pricker on a sustainable track. There’s no logic in bailing out the companies if they are simply exhalation to baffle it and beg for more. Throwing more money at the...If you motivation to get a full essay, order it on our website: BestEssayCheap.com

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