In case of banks, for example, those were loans to keep the financial system from collapsing, and thus avoid a World economic catastrophe. Some of the funds have already been repaid, with profit.
In case of GM and Chrysler though, the term is entirely appropriate as the US bailed out UAW, while shafted investors.
Peter – the 2 car companies got loans… when they fix their messes they’ll have to pay back the money they got from us. A bailout would be money they didn’t have to pay back. You are also incorrect that the UAW gave up nothing. You are correct that investors got screwed.
Yes, the initial funds advanced under Bush were indeed loans. However, when 0bama forced them into bankruptcy, those and additional funds were converted into equity.
The UAW has indeed been forced to provide some relief from its constricting contracts, but they got equity for it, in much greater proportion than the bond investors got …
believecommonsense over 14 years ago
geeze, there should be strings attached … those bailouts weren’t kudos for a job well done
Motivemagus over 14 years ago
bcs, quite right. Otherwise it’s just free money - business welfare. Presumably both parties on this list should agree that is a bad thing?
d_legendary1 over 14 years ago
Break them up! Enforce the anti-trust acts. Cause really, its too expensive to keep these guys fat!
believecommonsense over 14 years ago
HQ … no support? did you not see the word “bailouts” in the toon’s caption?
they got far more “support” than many thought they deserved
your post makes no sense!
lalas over 14 years ago
If Gorrell had a grasp on reality he’d have the corporations playing the gov’t like puppets. I refer you to the economic implosion that was Wall St.
And if GM wants money to stay alive they’d better join the 21st Century.
petergrt over 14 years ago
“bailouts” is often times a misnomer.
In case of banks, for example, those were loans to keep the financial system from collapsing, and thus avoid a World economic catastrophe. Some of the funds have already been repaid, with profit.
In case of GM and Chrysler though, the term is entirely appropriate as the US bailed out UAW, while shafted investors.
lalas over 14 years ago
Peter – the 2 car companies got loans… when they fix their messes they’ll have to pay back the money they got from us. A bailout would be money they didn’t have to pay back. You are also incorrect that the UAW gave up nothing. You are correct that investors got screwed.
petergrt over 14 years ago
” …. the 2 car companies got loans …”
Yes, the initial funds advanced under Bush were indeed loans. However, when 0bama forced them into bankruptcy, those and additional funds were converted into equity.
The UAW has indeed been forced to provide some relief from its constricting contracts, but they got equity for it, in much greater proportion than the bond investors got …