The End Of An Industry

Recently, General Motors shares hit levels that had non been seen since 1946. Meanwhile, Ford is less than a dollar placeside(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 honorable” (Housel). In the wake of the current pecuniary crisis, American rail motorcarmakers gravel been clamoring for a piece of the $700 jillion pie. wherefore not? coitus has already shown its propensity for giving away taxpayer dollars to needy corporations the kindred American International Group. In fact, raze strong banks like Wells Fargo and JP Morgan Chase stomach been attached nine-figure injections from the Treasury. So why not help the struggling auto-giants? They’re too well-favoured to fail, right? Well, not quite. Contrary to normal belief, the United States is not a socialist country . furthest I checked , we static believed in capitalism. And since we’re still capitalists, the government cannot tone ending taxpayers’ money like candy at Halloween to corporations whose bad financial policy was their own undoing. In fact, Detroit auto executives have the assurance to equate their situation to the near analyse of the financial markets.

However, comparability 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 arrangemen t goes out of business, we lose the economy.! To put it simply, if Ford 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 pass pricker on a sustainable track. There’s no system of logic in bailing out the companies if they are simply exhalation to hassock 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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