When the government borrows money, it is borrowing money that businesses could have borrowed. And there is a limited supply of money to borrow.
Many businesses are failing right now because they can't get loans. Some bad businesses, some are OK ones that are hit because there is not enough money being lent.
When the government borrows money, and gives it to bad businesses, it is basically forcing better businesses to fail, and picking which bad businesses get to live a bit longer.
Fair?
And as for the Auto Unions, they retire after 30 years of high pay and job security, and keep almost all their wages and benefits during retirement. It is this huge burden that is making the companies fail.
Obama printed money, coerced stock holders to sell him voting stock for 16 cents on the dollar, and then used the voting stock to elect a new board of directors and then fire the CEO.
Bankruptcy laws traditionally give bankrutcy accests to secured debtors first, and then pay the remainder to unsecured debtors. The Unions were unsecured debtors, and the bondholders were secured debtors. Obama coerced the bondholders into staying out of bankrutcy court and letting the Unions get the company assets instead. Obama gave 55% of the company stock to the union. All done with your tax dollars.
And since the government backs the auto companies, it means that if they continue their failed union business model, the IRS will tax money out of your small pay check to insure the retired union workers keep getting $70 per hour even during retirement. I thought Obama was going to spread the wealth down, not up.
Many businesses are failing right now because they can't get loans. Some bad businesses, some are OK ones that are hit because there is not enough money being lent.
When the government borrows money, and gives it to bad businesses, it is basically forcing better businesses to fail, and picking which bad businesses get to live a bit longer.
Fair?
And as for the Auto Unions, they retire after 30 years of high pay and job security, and keep almost all their wages and benefits during retirement. It is this huge burden that is making the companies fail.
Obama printed money, coerced stock holders to sell him voting stock for 16 cents on the dollar, and then used the voting stock to elect a new board of directors and then fire the CEO.
Bankruptcy laws traditionally give bankrutcy accests to secured debtors first, and then pay the remainder to unsecured debtors. The Unions were unsecured debtors, and the bondholders were secured debtors. Obama coerced the bondholders into staying out of bankrutcy court and letting the Unions get the company assets instead. Obama gave 55% of the company stock to the union. All done with your tax dollars.
And since the government backs the auto companies, it means that if they continue their failed union business model, the IRS will tax money out of your small pay check to insure the retired union workers keep getting $70 per hour even during retirement. I thought Obama was going to spread the wealth down, not up.
