Thursday, November 20, 2008

Congress wont help because of a lot of things

Dean Baker is the Co-director, Center for Economic Policy Research as well as a contributter to The Arena @ Politico.com.
Dean Baker had this to say about the situation the Big 3 & the UAW have put themselves in.

"The Big Three have a problem in that there is a fundamental conflict between the interests of the top executives and the interests of the workers and the most affected communities. The latter should be perfectly happy to accept a bailout that has as one of it main conditions that the top industry executives get put out to pasture and that whoever remains on top also gets big pay cuts. Reduce...

Obviously the executives themselves are not interested in such a package and would rather try to milk the companies of every last penny before they go under.

Congress will also be ambivalent about a bailout package that imposes real restrictions on executive pay because it will yet again highlight the fact that they handed over hundreds of billions of taxpayer dollars to Wall Street bankers without any real restrictions. In short, you have a situation where is it difficult to justify to the public a bailout that hands millions more to auto executives with a track record of dismal failure. On the other hand, a justifiable bailout would call attention to the completely outrageous terms of the Wall Street bailout.

Will Congress be willing to embarrass itself to save economies of Michigan, Ohio, and Indiana? Probably not."

Everyone has egg on their face :(

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