Conlibe: Political Blog for TRUTH in Politics.

Liberal Opinion Blog. Boston, Massachusetts. Political Democrat, Independent. Debunk Republican Lies, Misinformation

Bailouts and Inevitability

We’re now being told to invest in construction and telecom stocks…

Because the president elect has outlined a plan to pour billions into infrastructure to jumpstart the economy. And some of that will include broadband.

Mr. Obama was the guest on NBC’s Meet the Press, Sunday (December 07). He outlined his plans for a path for long-term, sustainable economic growth.

OBAMA: …and that’s why I spoke in my radio address on Saturday about the importance of investing in the largest infrastructure program–in roads and bridges and, and other traditional infrastructure–since the building of the federal highway system in the 1950s; rebuilding our schools and making sure that they’re energy efficient; making sure that we’re investing in electronic medical records and other technologies that can drive down health care costs. All those things are not only immediate–part of an immediate stimulus package to the economy, but they’re also down payments on the kind of long-term, sustainable growth that we need…

BROKAW: …the real question in the stimulus program that you have just described and as you shared with, with the American audience in your radio address is how quickly will it mean jobs out there across America and how much is it going to cost and who’s going to pay for it?

OBAMA: Well, I think we can get a lot of work done fast. When I met with the governors, all of them have projects that are shovel ready, that are going to require us to get the money out the door, but they’ve already lined up the projects and they can make them work.

So there we have it, from the horse’s mouth, so to speak.

• On another talking point…the auto industry, I’m picking up hints that the auto bailout is just a stop-gap measure to keep the economy from sliding deeper into recession. Seems to me the U.S. auto industry, especially GM and Chrysler, are on their deathbed and will eventually go bankrupt. Giving them a loan will only keep factories and jobs from disappearing now, and NOW (in an already weakened economy) is NOT the best time for this to happen. Technically, they’re going on life support…but there won’t be any donors.

So, does the president elect think the Big Three deserve to survive? Brokaw asked:

OBAMA: Well, I think that the Big Three U.S. automakers have made repeated strategic mistakes. They have not managed that industry the way they should have, and I’ve been a strong critic of the auto industry’s failure to adapt to changing times–building small cars and energy efficient cars that are going to adapt to a new market. But what I’ve also said is, is that the auto industry is the backbone of American manufacturing. It is a huge employer across many states. Millions of people, directly or indirectly, are reliant on that industry, and so I don’t think it’s an option to simply allow it to collapse…

(Mr. Obama believes any government assistance should come with conditions. He also thinks it’s NOT a good time for such a large industry to go belly-up.)

…some people have said let’s just send them through a bankruptcy process. Well, even as large a company as GM, in ordinary times, might be able to go through a Chapter Eleven bankruptcy, restructure, and still keep their business operations going. When you are seeing this kind of collapse at the same time as you’ve got the financial system as shaky as, as it is, that means that we’re going to have to figure out ways to put the pressure on the way a bankruptcy court would, demand accountability, demand serious changes. But do so in a way that it allows them to keep the factory doors open.

• Like agent Smith told Neo in the movie: The Matrix: (Pretend Neo/Mr. Anderson is the auto industry.)

“You hear that Mr. Anderson? That is the sound of inevitability. It is the sound of your death… Goodbye, Mr. Anderson”.

Some would argue that Neo survived. Remains to be seen how much life imitates the movies!

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