They are biased in favour of big business, so the small competitors are disadvantaged
Responsible competitors to the bailed out incompetent business have to pay for the bailed out business, which is unfair
Bailouts support reckless lenders, managers and businesses
Bailouts are usually bad value for money
The bailed out business is receiving a government backing, which hurts the competitors.
Bailouts tend to keep unproductive parts of a business going
Governments tends not to run companies well in general ( Private sector are not perfect, but do better)
If the company was viable a investment company would take over the assets of the bailed out company.
They can be against the rules, or laws and given anyway
Its bad for the economy
You get what you pay for. If you pay companies for taking excessive risks, then a lot more companies will do so.
The facilities can be put to better use if the company is not bailed out. And the bailout funds can be put to better use.
When you prop up failing companies, you just entrench the bad management and practices which led to the companies failure.
When you let the company go bankrupt, it doesn't mean the end of that industry, the assets just transfer to new management.
Confidence is placed on politicians who just don't know.
We can't borrow and spend forever.
Bailouts, its not what you see, but what you don't see
Solutions
We don't advocate doing nothing we advocate sound policies, thats how would get out of the current situation.-
Reform system
Lower taxes
Rely on sound money
You want prices structures to adjust
We need to understand how the government got us into this mess
Bailouts don't save mainstream, they stick it to main street
Too big to fail
No company is too big to fail, some are too big to liquidate quickly.
Government makes monopolies that grow too big.
The market needs corrections, that is a natural function of the market, like getting a cold occasionally boosts your immune system
Structural changes to avoid bailouts
It would be nice if banks offered, at least, two basic types of account.
(1) Savings: Money does not earn interest but is safe, even if bank fails.
(2) Investment: Money earns interest but is at risk. If bank fails you become a creditor.
Jim Rogers on Bailouts
Jim Rogers on Bailouts
The solvent take the assets off the insolvent
Countries which took their pain came out best.
Problem is too much debt, borrowing and consumption, governments solution is to borrow more consume more and more debt.
Jim Rogers talks about bailouts
The bailouts take the assets from the competent and give them to the incompetent.
McCotter on bailouts
McCotter on bailout legislation
"There are no necessary evils in the government"
Ron Paul on bailouts
Ron Paul on Bailouts
We can't create wealth out of the printing press
You cant save free markets by socialism
Ron Paul speaks out on Bailout adjustments
We have an immoral system, poor are bailing out the rich and innocent bailing out the guilty.
Like a drug addict taking a fix and feeling better for a day, but the patient is going to die.
Its arrogant that the politicians and bureaucrats believe they can plan the economy.
