With the refusal of the $14 billion helper from the United States taxpayers by the U.S. Senate, the auto industry in America faces uncertain times. Let us not forget, however, that they’ve brought this on themselves with poor management and lack of foresight for energy efficient vehicles. The one thing they couldn’t predict, however, was this “perfect storm” credit crunch. The auto industries are unable to get any line of credit through private investments and lenders. This is a sign of not only the lack of trust that they can be paid back, but it also points back to the inability of the Federal Reserve to tame the problems of debt increases in America.
When I was young I always looked to my parents, immediate family, and teachers/mentors for advice and example. What easier example could we look at than our own government? This is where we’re lead astray. For years we’ve racked up a federal deficit that’s uncomprehendable by even Bill Gates’ standards. Living by a credit card, and a line of credit courtesy of Communist China – we’ve outstretched our own Treasury. This has lead to an increase in credit gouging by everyday Americans. It is said that the average American has 5 credit cards in their possession at a single time.
So what has the “lame duck” George Bush done in this time of economic uncertainty for the Big 3? He’s simply kicking the can down the road, waiting for Barack Obama to take over. The President has given in to the left and is agreeing with anything they put on his desk at this point. Bush was on board with the $700 billion package for Wall Street, and is now on board with the $14 billion for the auto makers. A Republican approach should be from the standpoint of defiantly dividing private from public when it comes to industry.