According to the story at this link: http://news.bbc.co.uk/2/hi/business/7791999.stm,
Carmakers will get $13.4bn in short-term financing from the $700bn Wall Street bail-out, and another $4bn will be provided later.
Phase 2 of this 'solution' is to excite the American people to start buying cars.
Now, what would excite an American to make a large purchase more than giving them the money to do this?
If all this bail-out money went to the American people, wouldn't we buy cars? Americans would invest, and would also go shopping. I bet you we also would save our homes from going into foreclosure as well. Does not American industry depend on the prosperity of the American people?
I know I'm no expert in modern money mechanics, but wouldn't it be better for everyone if the goal was to make the people prosperous, instead of increasing the government's leverage over industry?
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Whoa, this is way too political a conversation for me. My head will explode.
I knew I shouldn't have used the words 'government' and 'leverage' in the same sentence!
Too far, Joellyn, too far....
All I'm saying is, the government should give us a ton of money, instead of car companies and wall street. If we're all rich, we'll have no problem buying cars, investing, and paying our mortgages.
Yeah, I don't understand the reasoning either.
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