Henry Paulson figured out that buying troubled assets does not help the cause. If you want to own the financial industry you don’t get there by purchasing their problems, you get there by purchasing them. (Or at least watching over them with Tin Foil Hat firmly in place.) Read the full article here.
On the other hand, King Henry is watching the Democratic machine rev up in support of auto maker bail-outs and keeping his distance. Either he recognizes this as a straight donation to the unions or he understands how little an ownership stake in the backward facing auto industry contributes to the nationalization of our economy. In my opinion both are correct. For an insightful read on the auto industries’ brazen beggary go here.
J Boyer Morristown NJ says:
Honestly I would rather see the auto industry bailed out than the crooks in the financial industry. The Government has been making it difficult for the auto industry for years and years, allowing the Japanese, Koreans, and soon the Chines to sell cars here which have been subsidized by those governments though government health care plans, to out right subsidies.
November 12, 2008 — 3:21 pm
Joe Hayden says:
In a few months the government is going to have an ownership interest in quite a number of major industries. As soon as I saw the auto industry bailout being floated, I knew a government equity position wasn’t far behind. And here it comes…
We get front-row seats to one of the most amazing, overt, significant, far-reaching, potentially devastating government takeovers of private industry the world has known. We have a representative government, I thought. Who’s best interests are they representing?
November 12, 2008 — 5:59 pm