Quote:
Originally Posted by WarChild
You guys do realize that "bail out" money is not just money straight down the toilet, right?
Much of it is loans and purchasing of existing debt. When you buy a mortage, you don't write down the entire value of the house. The houses may be worth less, but they still have a value.
The auto industry has to pay back that money. The last time a loan was made (Chrysler) it was actually paid back ahead of time.
So you're not talking about money staight down the toilet like many of you seem to think.
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You're assuming they will repay it?
What if they need another boost to keep going?
In the 80s Thatcher inherited an economy that was in the toilet. A lot of it due to companies that simply were not worth keeping open. She put a lot of people out of work because there was no other way. The companies that could not survive did not. She realised that to keep them on life support was not in the countries long term interests.
Whether these bail outs are a solution or a life support for a dying industry only the future will tell.