We all know by now the amount of bailout money that is going down the bottomless bucket is staggering. We also know that the deficit is going to be more astronomically high that will be shouldered by future generations to come.
But there is a pattern to all these bailout madness. Once you sit and examine this patterns you will be convinced that these bailouts are nothing more than traps that will expand the power of government and will lead this country to socialism.
The pattern goes like this:
– A group of companies in an industry that is in financial trouble will be deemed ‘too big to fail’ and it is usually tied to a political issue that “needs fixing” or a political ally that needs to be protected
– Bailouts will be sold to the public as the saving grace of these companies and the jobs that are involve
– The companies will either take or be forced to take these bailout money but are still failing even after the bailout money was exhausted
– The political issue that “needs fixing” or political ally that needs protection will then be revealed and the bailout will be used as leverage to force the acceptance of fix and change
The Auto Industry
The automobile industry was in trouble way before this economic crisis came about. For years they have been losing market share and the economic crisis greased the downhill slide even more. We were all told that the American automakers are too big to fail. Hundreds of thousands of jobs are on the line so a bailout is just the solution. After an estimated $130 billion of tax payers money, GM and Chrysler, the two out of three that took the bailout money, are not saved from failing. As this is being written, Chrysler is officially in bankruptcy and GM is on the verge of bankruptcy.
Chrysler is closing a total of 5 plants and cancelling 787 dealerships across the country affecting hundreds of thousands of jobs. Then Chrysler will be sold to Fiat for good measure. Despite of the billions of dollars in bailout money, Chrysler failed, jobs lost, and the once part of the American Auto Big Three is now a foreign owned company. The bailout failed miserably.
GM is on the verge of bankruptcy. Just like Chrysler, it received billions of dollars in bailout. It is reported that GM will be closing a number of plants and lay off thousands of workers. Meanwhile, GM is building plants in Brazil .
What are the implications?
We all know that the UAW is in the tank with the Democrats every election and in the tank with Obama last presidential election. It was reported that during the bankruptcy negotiations, some investors were “strong armed” by the Obama administration to accepting the deal. The deal left the workers of Chrysler and GM out on the limb, the thousands of dealerships and the people they employ are SOL, and the bond holders of Chrysler and GM are left taking the massive loss. Meanwhile, the UAW has gained 55% ownership of Chrysler and may own a majority share of GM as well after GM goes thru the same bankruptcy procedure.
Another group in the tank with Democrats and Obama is the environmentalist group. To “pay off’ this group, the Auto industry must be reduced to making “green” cars. The only way that can happen is if the Democrats and Obama control the Auto makers. Just like Chrysler investors being strong armed, the government can now dictate what cars Chrysler and GM can make.
The Financial Industry
Just like the US Auto industry, it has taken a financial crisis to bring the financial industries problem to the forefront. Just like the auto industry the financial industry took an unprecedented amount of tax payers’ money as bailout. The reasons and results are quite similar, too big to fail and the economy is still in shambles. Even after the bailout, the financial institutions thousands were laid off and more bailout money could be needed.
What are the implications?
As I pointed out numerous times before, the financial industry contributed large amounts of money into the coffers of the Democrats and Obama. During the last presidential election, the financial companies that received bailout money contributed over $14 million to Obama. The bailout money was their payment for the contribution. This amount to a whopping 2500% return on their investment while the American tax payers struggle to get a job, pay the mortgage, and have a bleak financial future.
Now that the government ahs control over these financial institutions, the Obama administration is dictating the pay and bonus practices of these companies. Let us wait and see what else will be dictated.
The Health Insurance Industry
Next on the table is the Health Insurance Industry. Reuters and Yahoo have fresh reports that insurance companies have the preliminary access to the TARP funds. As you know, the health care reform agenda is in the works in Congress. Secret meetings and well publicized meetings are being held to shape the health care reform bill. Making TARP money available to the insurance companies could be trap just like the trap set out for the auto and financial industry.
What are the implications?
I suspect that companies that will partake in the TARP funds will be strong armed to support the radical overhaul of the health insurance industry which is disguised as health care reform. Once the real negotiations for the health insurance reform begin, the companies that are stupid enough to be lured into this trap will have their bargaining power diminished. I suspect that the Obama administration will use the bailout money as a leverage to force these insurance companies for unfavorable concessions.
This is all about control. The pattern is so obvious once you stop, think, and digest all the evidence you will come to the same conclusion. First control the mobility. Second, control the money. Third, control who will be healthy and/or who live or die. The result will be…….??????