Too Big to Fail, Not Too Proud to Beg
This list of companies or groups seeking government funds continues to grow. It’s really unsurprising, as no one to my knowledge has been turned away yet. Sure, lawmakers kicked and screamed a bit, but in the end, the companies pretty much what they ask for. Here’s my tally so far:
- AIG – Considered “too big to fail” they were handed $85 billion initially, but the number is now up to $152 billion. On a side note, I had to look for a new job just as the financial handouts were starting. I landed on my feet, fortunately, but who was one of the first job openings I saw for? You guessed it, a division of AIG. I’d have been one well paid “workfare” recipient.
- Financial Institutions – that’s apparently the broad definition given for the $700 billion bailout. Can I call myself a financial institution? Hey, I’ve got a blog about personal finance, so maybe I can apply.
- General Motors
- Ford
- Chrysler – OK, all these were lumped together. There was some kicking and screaming, but in the end, they got pretty much what they wanted. Now they can go back to making mediocre cars. As a side note, the car that had the big transmission repair bill in another post was made by a company owned by one of the “big three” and its transmission was apparently produced by another one of the big three. I won’t let that mistake happen again.
Add another group in line to get a government handout. Now property developers are going to look for government cash as their prospects are looking bleak.
How long will this continue? As long as there’s money to be had. We will just go right down the line of businesses and groups until the money stops flowing.
Now is any of this a good idea? Personally, I’m really sceptical of more than just the loans, but how they will be used. Who’s going to end up with the money in the end? Seeeing as I didn’t get the AIG job, I’m pretty sure it won’t be me.
What do you think? Share your thoughts on the bailouts below.
