President Obama told the US auto industry to shape up, because we can't keep a permanent flow of cash into their hands. Essentially, he said the bailout funds are going to run dry for the auto industries, if they don't show that they have a plan to save themselves. In the same speech, however, President Obama also said that we won't let the US auto industry simply vanish. To … [Read more...]
Government Owned Companies
With all the recent investment by the government into banks and other publicly traded companies, one has to wonder, is the government really the best organization to run these companies? In the private sector, a company will spend millions of dollars on a single executive's pay each year. This isn't because the companies are wasteful or the executives are greedy. It's … [Read more...]
AIG Outrage
President Obama lashed out against the plan of AIG to pay roughly $165 million in bonuses after accepting about $170 billion in bailout money. He was quoted saying that the bonuses were an "outrage", violating "fundamental values", which underscore the need for financial regulatory reform. I'm curious. Which fundamental values is President Obama referring to? It couldn't … [Read more...]