I am not in favor of bailing out all 3 of the Big 3 auto makers. Saving 2 out of three makes more sense. Still it annoys me to see than in USA people can feel more sorry about a Goldman Sachs partner than a GM autoworker.
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Posted on General | 1:53 pm
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This is the year in which Europe will either fall apart or emerged stronger. I give it 75% that it emerges as a stronger union but the risk of collapse is still there. Germany has the key to solve the problem because of the size of its economy, its saving rate and its export volume. Germany has to decide on whether it continues to transfer some of its wealth in order to create markets for its exports or it let’s Europe fall apart and ends up with an overvalued currency and deteriorated markets. Already today it started paying negative interest rates which is a prelude in my view to a huge rise in the DM should it be born again. Tough choice. I think Germany can actually both save Europe and make money by buying underpriced Italian and Spanish bonds and selling them after stabilization. It can do what the FED did with many financial institutions, make a profit by providing much needed liquidity at a critical time.
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Posted by MJ - December 13, 2008 5:19 pm - #
Courtesy of Hans Peter
http://usrimg-us.plum.com/a5847897ef6ef020365caad5943c9153.jpg
Posted by Martin Varsavsky - December 13, 2008 5:20 pm - #
@ MJ:
I love it!
Posted by formero - December 13, 2008 5:27 pm - #
Whats your opinion about Madoff? One of your friends we suppose?
Posted by Dan - December 13, 2008 9:33 pm - #
Ford’s enough of a bailout. What did the others want?
Posted by Stephen G - December 14, 2008 3:20 am - #
A million lost their jobs in the past three months, bringing the total unemployed to 10.3 million. The government cannot put money into every business that is going to fail.
Yes, Paulson (former Goldman Sachs CEO) and helicopter Ben suckered congress into accepting the TARP before the public would realize it was throwing good money after bad. But that doesn’t mean you burn the remaining assets because precedent has been set!
Posted by Lasse Enersen - December 14, 2008 10:43 pm - #
If a government takes taxpayers money (via taxes of inflation) and puts it in car companies pockets “to save jobs”, it takes away the power from the people to use their own money to create jobs somewhere else. Saving companies which do bad business is not capitalism. Period.