I will preface this by saying I do believe that the big 3 is being treated harsher by Congress than the banking industry has been. That being said I think this was poignant and entertaining.

Rep. Gary Ackerman, D-New York On learning that the CEOs representing the big 3 all flew private jets to their hearing before the House Financial Services Committee.

“It’s almost like seeing a guy show up at the soup kitchen in high hat and tuxedo. It kind of makes you a little bit suspicious.”  Source

I will admit that it may seem petty of Congress to be focusing in on the travel methods of the CEOs when they should be working on a solution to a looming problem, but it does speak loudly to the thought process of the people in charge of these companies.  Your company is almost out of money and the welfare of all your employees is at stake. You don’t ride in to town on your golden chariot. You swallow your stupid pride and crawl on you hands and knees all the way from Detroit to present your business plan that justifies this massive loan.

I hope the day comes when these companies have money bursting from the seams and can afford to fly everyone from their CEOs to custodians on personal jets all around the world, but today is not that today. Today is a day to be humble and accept that your business model is failing and your business practices need to be revamped. The CEOs have a chance to lead by an example right now. You want to prove that you are willing to do whatever it takes to save your company? Try flying coach. Hell, I’d settle for business class.

American Auto Industry: “Can we please have $25 billion in tax payer money to stay in business?”

Congress: “If we give you the money what are you going to do differently to ensure that you don’t end up in this situation again?”

AAI: “Umm… This time we’re going to do it with your money instead of our own.”

And scene.

“We have little evidence this $25 billion will do anything to promote long term success,” said Michael Enzi (R-Wyo.) “I’m pretty sure if you took this bill to your banker and asked for $25,000, he’d send you back to do more work.”

I do believe that there will be a significant amount of economic turmoil if the big three collapsed, but handing them free money to continue failed business practices is not an acceptable solution.

This country is at a crossroads in our future of long term energy solutions, and the auto industry will play a key role in that process. This is and always has been a very industrious and ingenious nation. We have an opportunity to make a giant leap forward in terms of sustainable energy. I say if the auto industry wants my money, then they need to demonstrate to me how they can help in this.

“Their board rooms in my view have been devoid of vision,” said Sen. Chris Dodd (D-CT), chairman of the Senate Banking, Housing and Urban Affairs Committee, in opening remarks at a hearing attended by the executives of the nation’s Big Three automakers. “The Big Three turned a blind eye to opportunities. They have promoted and often driven the demand of inefficient, gas guzzling vehicles, and dismissed the threat of global warming.”

I don’t want to get off on an environmental tangent, but the days of gas eating vehicles are fading. If you want the money, present me with a business plan that helps this country and not just yourself.

Quotes are courtesy of this article.

What happens when you agree to dole out $700 billion of taxpayer money directly to corporations? The vultures start circling looking for the remaining specks.

As of this writing, Atlanta, Phoenix, Philadelphia, and now Dallas are lobbying for their own cut of federal tax money to help prop up their cities. The former three cities are asking for a cut of the $700 billion, whereas Dallas hopes to receive a chunk of the proposed “economic stimulus plan”.

While it’s not a new concept for federal tax money to be spent on city programs, seeing the mayors of these cities publicly lobbying for a portion of a terribly unpopular bailout plan is very strange.

Where does this federal spending stop? Who will foot the bill if McDonald’s loses a warehouse full of Big Macs? What if a chicken farmer catches a cold and is forced to take a few days off of work? Should the federal government step in and draft someone to fill in for the farmer?

A failing city is very similar to a failing company. If you can’t afford your expenses with your current income, then you have to deal with the problem. Either increase your income or decrease your expenses. “Help me! Give me money!” is an unsustainable approach since we can’t afford to backstop every single institution that is having financial trouble.

The Wall Street Journal commented on an interesting facet of the bailout bill. Apparently, the Democratic Party has decided to slip in some “scripted dialogue” after the vote on the bailout took place in order to secure more money for the UAW via Detroit’s Big Three:

The plan? Make it the Bush administration’s responsibility to give Detroit cash — namely by claiming after the event that the $700 billion rescue package for financial institutions was in fact a rescue package for auto makers. This was attempted with several hilarious “colloquys” — pre-scripted dialogues between members that were quietly inserted into the Congressional Record after the vote, all aimed at rewriting the “intent” of the law. Say, this one, from Oct. 1:

Michigan Sen. Carl Levin: “As Treasury implements this new program, it is clear to me from reading the definition of financial institution that auto financing companies would be among the many financial institutions that would be eligible sellers to the government. Do you agree?”

Connecticut Sen. Chris Dodd: “Yes, for purposes of this act, I agree that financial institution may encompass auto financing companies.”

If this type of rewriting history is common practice in the corrupt world of politics, then more has to change than just the bailout policy.

In a recent spotlight on the Boston Globe’s website they try to come up with reasons why the bailout might feasibly help taxpayers.  Seems to me like they have to stretch pretty far to see any light at the end of that tunnel.  Most of the “benefits” are obscure ways to maybe possibly save on your tax returns.  In other words, the government is going to take more of your money unless you can pay a good accountant to find all the little ins and outs of the new bill for you.  Even with tax deductions being the only real benefits, the Globe has environmentally friendly habits listed three times: alternative energy, home energy improvements, and hybrid cars.

Lesson learned: go buy expensive Japanese hybrid cars and purchase very expensive solar panels from Asian electronics companies and then hire wealthy accountants.  The poor man gets…. NOTHING.

View their slideshow style presentation here.

Problems here in the US have a tendency to make themselves felt worldwide, as we have all seen in recent months.  Here is another good example.

German automaker Opel, a subsidiary of the existentially threatened American firm General Motors, is trying to get the German government to secure its future. Its request raises a number of prickly issues.

Read the rest of the story here at Spiegel Online.