Comments on: More Bailouts: No Risk, All Reward for Poor Decisions http://dancody.org/archives/more-bailouts-no-risk-all-reward-for-poor-decisions.html Progressive commentary & Wisconsin politics by Dan Cody of Milwaukee, Wisconsin. Sat, 31 Jul 2010 02:54:41 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Go Celtics http://dancody.org/archives/more-bailouts-no-risk-all-reward-for-poor-decisions.html/comment-page-1#comment-51055 Go Celtics Wed, 26 Nov 2008 02:57:18 +0000 http://dancody.org/?p=1984#comment-51055 Awesome, on this we can agree. I wonder though, if your tune will be the same when the President handing these out has a "D" after his name. Awesome, on this we can agree.

I wonder though, if your tune will be the same when the President handing these out has a “D” after his name.

]]> By: Sean http://dancody.org/archives/more-bailouts-no-risk-all-reward-for-poor-decisions.html/comment-page-1#comment-50980 Sean Tue, 25 Nov 2008 17:25:52 +0000 http://dancody.org/?p=1984#comment-50980 Dan, I agree with you 100%. Capitalism and the free market HAVE to have risk. It's the ying to reward's yang. If these giant company owners/leaders can make bad decisions and run that company into the ground then get "rewarded" with bailout money, what incentive do they have to, after the money is given to them, run their business better? The answer is NONE! These companies need to succeed or fail on their own. Can we help growth or mitigate failures? In some cases yes, but in very small doses (certainly not the dollars we've been throwing around this past year). Another huge problem(s) I have with these bailouts are: What dollar amount in sales, revenue (you pick the indicator) is needed to be "eligible" to get bailout money? Who determines that dollar amount, and how much do you get? Is the small business owner and his/her employees going to get a couple hundred thousand dollars of bailout money in this tough economy? No, they're not going to be deemed "worthy" enough. Are the families that are losing their houses going to get their mortgage paid for because they were fiscally irresponsible (just like GM, AIG etc were)? No, and they shouldn't, but neither should the irresponsible businesses. It's a travesty and one that should be corrected by letting the market do what is does best - correct itself. If the government thinks they can correct this by throwing money at it, all you're doing is giving the drunk that pissed his life away with bad decisions, more money to buy alcohol, and make MORE bad decisions. Dan, I agree with you 100%. Capitalism and the free market HAVE to have risk. It’s the ying to reward’s yang. If these giant company owners/leaders can make bad decisions and run that company into the ground then get “rewarded” with bailout money, what incentive do they have to, after the money is given to them, run their business better? The answer is NONE! These companies need to succeed or fail on their own. Can we help growth or mitigate failures? In some cases yes, but in very small doses (certainly not the dollars we’ve been throwing around this past year).
Another huge problem(s) I have with these bailouts are: What dollar amount in sales, revenue (you pick the indicator) is needed to be “eligible” to get bailout money? Who determines that dollar amount, and how much do you get? Is the small business owner and his/her employees going to get a couple hundred thousand dollars of bailout money in this tough economy? No, they’re not going to be deemed “worthy” enough. Are the families that are losing their houses going to get their mortgage paid for because they were fiscally irresponsible (just like GM, AIG etc were)? No, and they shouldn’t, but neither should the irresponsible businesses. It’s a travesty and one that should be corrected by letting the market do what is does best – correct itself. If the government thinks they can correct this by throwing money at it, all you’re doing is giving the drunk that pissed his life away with bad decisions, more money to buy alcohol, and make MORE bad decisions.

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