10Jan Why do we give bailout money to corporate execs who have mismanaged their companies?
trer asked:
I don’t understand the logic of giving (it’s not lending because we will NOT see this money returned no matter what they say) billions upon billions of our tax dollars to corporate execs and CEOs who are paid millions to manage their companies yet still managed it into the ground causing this global recession. Why are we giving them money?
I don’t understand the logic of giving (it’s not lending because we will NOT see this money returned no matter what they say) billions upon billions of our tax dollars to corporate execs and CEOs who are paid millions to manage their companies yet still managed it into the ground causing this global recession. Why are we giving them money?
Tags: corporate
January 12th, 2009 at 10:08 pm
The idea is that there all kinds of strings attached and that it will save those businesses from going under.
If those businesses weren’t so important, I think we’d all say “let ‘em die”, but the theory is that if they go down, they’ll take the rest of the economy with them.
So, is it JUST that we end up paying money from their screw ups? No.
Is it prudent? Well, do you really want to be destitute just so you can be right?
January 13th, 2009 at 5:31 pm
Because many of those same execs now work for the government - as is the case with the current Secretaries of the Treasury and of Commerce…Secretary Paulson was a major institution’s CEO, lost millions for the company and - well, you see how he’s trying to “manage” the current mess!
January 16th, 2009 at 5:38 pm
but they still take $20,000 private jet rides.
January 17th, 2009 at 10:39 am
I agree, the corporate raiders who managed their companies into financial ruin and rewarded themselves with exorbitant salaries, bonuses, stock incentives and golden parachutes should not have been given billions of dollars just to do it again. In fact, we should be asking them for “give backs” and they should be investigated for fraud and relieved of their duties. Congress didn’t seem to feel the need to restrict the funds in any way or change regulation, but I think as they are hearing the outrage from American taxpayers they will revisit the issues once they meet again in January.
January 19th, 2009 at 4:18 am
You are wrong on a lot of counts. The automakers are asking for loans, and when it was done in the past the American public made money. The cost to the U.S. if one of the Big 3 goes under would be devastating to an already fragile economy. It is a no brainer. Sure, put strings on the money, take an interest in the companies for now, make the CEOs take a lesser salary, whatever makes you feel all warm and fuzzy. The automakers have done a lot to become lean and mean, but no one could have predicted the present downturn after all, they were all doing well in the first quarter. The American people were buying SUVs, and other large vehicles until the gas prices ballooned. We cannot fault the American automakers for making large vehicles when that was all that was selling well. Now of course it looks like it would have been nice if they had offered more higher mileage vehicles, but at that time it would have been stupid to make vehicles that wouldn’t sell and weren’t wanted. One in ten jobs in the U.S. is tied to U.S. automakers, to let them fail would be an unpatriotic thing to happen. Peace.
January 21st, 2009 at 4:10 am
I don’t know and I wish I could just stop paying taxes if the government are going to throw the money away anyway. I think there needs to be a cease and desist order until Jan 1, 2009. Stop throwing money at these irresponsible companies. The American car companies have been failing for years. GM just built a $300M plant in Russia while still laying off American workers and now their begging for American money to bail them out. That’s ludicrous. They should have thought about that before building the plant in Russia. Citigroup is not even an American company! It’s a amazing how these companies have disrupted the balance of the global economic system! I think they should treat them like the people who show up in our office for welfare. There needs to income stipulations. If you accept our corporate welfare, then your CEO cannot earn more than $150,000/ year. If that’s not enough for them to live one them let me sell a Bentley, a boat, a house or other assets!
January 22nd, 2009 at 4:58 am
“We” are not giving them money. Our corrupt politicians are giving them money because the rich elites have owned them for years.