Tuesday, December 23, 2008

Bailout madness sweeps nation - National Post

Where have all the capitalists gone, and if there's a new system governing corporate North America, I want to be part of it with a bailout of my own sinking pension plan.

My RRSP statements show me down about 38% and I don't have to look far to find others in my shoes. So where's our bailout? Why don't we get money to replace lost savings under this new corporate mantra of bailoutism, which seems to be replacing capitalism?

Won't someone stand up and be a capitalist for at least 10 minutes? In the 1930s, U. S. businessmen jumped off buildings when things got bad, which I'll grant you is harsh, but it places the blame where it lies. In 2009, they go cap-in-hand to government to atone for their business-decision-making sins, and our politicians are dumb enough to absolve them.

In the rush for taxpayer cash, we are ignoring the system we have in place to deal with overcapacity in the marketplace and inefficient, bloated companies that make bad decisions. It is called insolvency and restructuring -- known in Canada as CCAA and in the United States as Chapter 11, names that refer to the underlying laws behind them.

They work well fixing broken businesses, allowing them to shed debt, recapitalize, restructure and return to the marketplace, albeit often in a shrunken form, but healthier.

Rather than let commercial nature takes its course and administer a dose of sour medicine to the failing health of some current industries and businesses, politicians have elected to solve the wounds with taxpayers' money.

Meanwhile, average Canadians don't get their pension nests feathered because governments are too busy spending our money bailing out so-called capitalists and greedy executives whose questionable decisions got us into this mess in the first place.

No comments:

U.S. National Debt Clock