The federal government’s decision to proceed with the rescue of the “Big 3” is somewhat staggering. After President George W. Bush’s announcement to rescue the automakers General Motors and Chrysler, various reactions followed. Some say the auto bailout is another way by the Bush administration to save its face from the blame on the current crisis. Others said the Bush administration saved once more the executives’ failures in running the companies. There are aslo some who said that the auto bailout, which will come from the $700 billion Troubled Asset Relief Program, would set a precedent of selecting only a few companies instead of saving one particular industry, the financial sector.
But one thing is for sure, the Bush government is in deep trouble. The government should stop rescuing companies whose failures were due to the mismanagement done by their executives. What the government should do is to prevent the other companies from being affected by the collapse of the Big 3. Instead of wasting money to save the executives’ asses from their wrongdoings, the government should set its eye on new players and help these companies develop their capabilities to replace the ailing giants.
Posted by Jones on December 18th, 2008 :: Filed under Uncategorized
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