Hiding in the closet

The nice thing about AmericanMadness is that one can speak openly without being censored. Now, do the rest of you think that Henry Paulson has pulled his latest version of the rescue plan out of his ass? The man doesn’t have a clue to what he is doing and the Congress doesn’t have a clue either.

Today I listened to someone on Bloomberg Radio explaining why GM couldn’t go into Chapter 11 and why we had to rescue them. He didn’t convince me. If they go under, three to four million jobs will be lost when the damage to all their suppliers and collateral companies are added in. We will very rapidly be into the Great Depression: Part II.

If they go into bankruptcy, they can abrogate all their previous contracts with their workers, including health care and pensions, and can start clean from scratch. What, you ask, will happen to the retired workers? They can live on social security like the rest of us will have to (if there is anything left when the government finishes giving it out to the markets) and use medicare to take care of their health like the rest of the elder population. There is no point in pouring any money into GM or any other car company, or into the banks; nothing is going to take hold. Everyone is terrified and they will not act.

There is nothing, in my opinion, that can be done to quell this perfect economic storm. Another genius on Bloomberg said that the market was going to go down to 3,000 before it stabilized. 3,000 was where the market was when it crashed in 1987! No one is ever going to retire on their 401(k)s if that happens because their money will be gone. We had better tell the farmers to plant every acre so that the population can be fed when they have no money anymore.

Meanwhile, has anyone heard anything from President Bush about this situation? I think that he spends his days playing with is dogs or hiding in a closet in the Oval Office.