In the video below, Ron Paul speaks about the bailouts and how it’s taking a bad situation and making it worse by adding fuel to the fire. You have companies that have performed poorly with assets they have been entrusted and in doing so the government is rewarding them by taking assets from those who have performed well to give to the underperfomers and some how that will make things better. It just doen’t make sense.
If the government insists on giving money away to stimulate the economy or fix a particular industry why not give it to the consumer in terms of a tax break or stimulus? For example, if they want to help auto sales, give a tax break or stimulus to all consumers who buy a car and then let the consumer decide which car companies they wish to support. However, this isn’t really necessary as the car companies that are doing things right don’t need a bailout.