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Blog Entry

Bailing out everything else, why not a franchise?

Posted on: November 12, 2008 12:58 pm
 

So we moved from mismanaged Banks, investment firms, now automakers.  Why not the Raiders, or the Tigers, or the Royals?

I mean, really, what would people rather see?  More retirement packages, vacations, quail hunting trips for execs who have sunk their companies or saving sport franchises in their cities?  These companies failed themselves, and should not be saved with tax payer money.  Let them sink and new companies, new competition, take their place.  Use the bailout money and buy some of these franchises that are dying due to mismanagement.  I mean after all, wouldn't buying the Royals be a public interest.  I don't think those poor fans can take another 100 loss season (sorry Royals fans).  Maybe even buy up lots of tickets to be distributed in local communities.  Put the scalpers and ticket agencies out of business.  Make a trip to the stadium affordable for the kids of America.

I think you can pick up my sarcasm here.  But we are just throwing good money away with these bailouts.  If we are going to piss it away anyway, why not save a franchise?  Save a fan?  Save a team?

P.S.  Some teams may be beyond saving, sorry Cubs Fans, LOL, Maybe next year.

Category: General
Comments

Since: Feb 18, 2008
Posted on: November 13, 2008 9:18 am
 

Bailing out everything else, why not a franchise?

PLease, rant on.  You make good points. 



Since: Jan 1, 2007
Posted on: November 13, 2008 8:23 am
 

Bailing out everything else, why not a franchise?

Sorry to prattle on for so long.



Since: Jan 1, 2007
Posted on: November 13, 2008 8:22 am
 

Bailing out everything else, why not a franchise?

So right. The gov't should not be pushing themselves into these areas. State owned banks are a horrific idea. They cannot even manage the money we already give them correctly and efficiently. I have learned much over the last couple of months by reading items either e-mailed to me, or researching myself, and talking to a good friend of mine that is a Professor of Economics at UCLA. What I have learned is this, giving these companies a financial windfall in the form of a bail-out only prolongs the ineveitable. These companies are more than likely doomed to fail and as far as I am concerned the sooner the better. Survival of the fittest needs to be our motto. It will allow newer and better run companies to emerge.

Let's look at the US auto industry for a minute. Ford, GM, and to a lesser extent Chrysler have put all of their eggs in the Truck/SUV basket. They have neglected the small car altogether and all have tried to make a decent sedan, but the quality and reliability just is not there. Ford for some inexplicable reason even tried to axe the Taurus their most successful selling car, and the largest selling fleet vehicle (next to the Police Interceptor Crown Victoria). Isn't that like cutting off your nose to spite your face? Chrysler has been doing a decent job of trying to keep up via the Mini Van, but (speaking from first hand knowledge) quality and reliability is seriously lacking. All three had not given any real consideration to the Hybrid/electric car until it was too late.

Meanwhile the Japanese auto makers have perfected and cornered the small car/mid sized sedan market. Only after that did they start to pursue the Mini Van, American truck buyer, AND wade into the Hybrid pool. When gas prices began their upward climb, the decrease in Truck and SUV sales and the Increase in Car and Hybrid sales were mirror images of eachother. What was GM's answer? Offer a hybrid SUV that gets 14-16 mpg rather than the normal 10-12 WHOOPIE.

I am tired of being reactive rather than proactive. The gov't bailing them out is not going to do a thing in this regard. Rather it will give them an ownership stake and mentality. This will empower them to dictate direction and the last thing we want is that, because historically congress is the picture of reactionary.

The UAW is just as responsible for this mess by hamstringing and holding the "Big Three" hostage to their unrealistic demands. As a direst result of supressed automation due to minimum staffing and unreasonable wage/benefit packages, these companies have to price their inferior product at a higher price point. I am obviously biased against Labor Unions, but IMO they keep companies from rewarding production and efficiency by using seniority as the sole basis for wage increases. When a company is forced to cut back it ends up being the "low man on the Totem Pole" that is the first to go regardless of his production. Although management is attempting to equalize this with early retirement options.

Banking is another whole ball of wax. The US Government has no business getting into this industry. Just look at Fannie and Freddie as well as Social Security. If a bank gave a bunch of loans to persons with questionable or bad credit, then they need to deal with it. Not expect ...We the People... to swoop in and save them from themselves. Giving Congress a toe hold in the financial industry is a very dangerous game and one I do not want to see played. Yet it appears at this point to be inevitable. It is only a matter of time before they begin to invest/tax/regulate/borrow against it to death. They will also do what they can to eliminate competition. We are going to have to keep our money buried in the back yard to ensure we have it.

A natural correction of the market needs to be allowed in order for us to progress to the next level, and new ideas and companies to emerge. FDR amazingly gets credit for seeing us through The Great Depression but a strong argument can be made that his policies did nothing and actually in some cases prolonged it. The War in Europe and the threat from Japan is what finally revitalized our industry. He gave us Welfare and gov't cheese, and made speeches about hope and fear, and if we have faith in our government we will all be OK. Now we want to give corporate welfare along with more posturing and fancy speeches engineered to make us feel good about our protector and friend, the US Government.

The most important thing Big Brother can do right now is allow us to drill for our own oil. Not as a solution, but as a bridge to get us through. This will help keep costs under control while we build more Nuclear facilities, wind farms, and Natural Gas technologies as well as explore alternatives. I saw a clip about an algae farm that can produce biofuel. It is much more cost efficient and less volatile than corn, and keeps corn for what it needs to be used for....food.

In closing, I was against the economic stimulus package, the AIG loan, and the bail out package. Any talk of other bail outs or stimulii will do no good and inch us deeper into recession and that much closer to socialism.



The views expressed in this blog are solely those of the author and do not reflect the views of CBS Sports or CBSSports.com