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Posts: 1,873 | Thanked: 4,529 times | Joined on Mar 2010 @ North Potomac MD
#85
Originally Posted by pichlo View Post
Yes, I omitted it deliberately because things did not turn out as rosy as you and they paint. Copernicus has already addressed the important stuff, all I can do is add some random rant.

What do you think will happen when someone receives some money he did not deserve? You do not need to think hard to answer that: he will squander it. We see that all the time with lottery winners or with spoilt children with 145 toys who receive a 146th. Something that does not cost you anything to get is not worth anything, simple as that.

What happened in the UK? The banks received a hefty bailout from the taxpayer's money. Money the government did not have in the first place, thus plunging the country into an even deeper deficit than before. Did it teach the bank any humility? Did they use the money wisely? No, the first thing they did was to use it for huge bonuses for the top managers. Yes, the very people who got us into the mess in the first place were, instead of being punished, rewarded with my money. And it did not stop there. The banks, instead of humbly bowing to the public and thanking them for the bailout, only grew in arrogance and showed the public the middle finger.

In other words, the bailout was a complete misfire.

I do not believe that bailing out Jolla would achieve anything different. Their top management has already a proven history of arrogant behaviour, ignoring the public and its own community, not to mention wasting money including spending money that was meant for X on Y (just ask Dave999 and his favourite tablet).

If a company lives and prospers, it's because it deserves to live and prosper. If it dies, it's because it deserves to die. A bailout does not change that.
Hi Pichlo.

If the UK gave the banking industry a bail out with essentially no strings attached then shame on them!

But, I think you have some misconceptions about the US bail out of the auto industry. You make it sound like they gave the industry money with practically no strings attached. You actually might have liked some of the things that it did. Essentially taking temporary control of the US auto industry and being quite proactive in making changes..

"The federal government took over GM and Chrysler in March 2009. It fired GM CEO Rick Wagoner..." among other things"

Here is a reference

http://useconomy.about.com/od/critic...to_bailout.htm

Initially there were about $80 billion in loans and the US government recouped all but $9 billion when it sold it's shares back. So basically it lost about 11% of the loan. But all things considered, given the disruption to the economy and peoples lives that could have taken place, this was a good thing. Plus the remaining loss has probably more than been made up with the improved economy over time.

Wall Street bail out... well again, they were not given a free ride either, but maybe I shouldn't have included that example for comparison. After all that is more of a Ponzi scheme anyways so heck with them!

Interesting that you would be willing to loan Jolla several million if you had the money. Hopefully they heed the advice you give and think twice about borrowing money from you.

"There is a nice proverb where I come from. It does not translate well into English but it roughly goes like this. Whose bread you eat, those song you sing. Meaning, the one giving you the money dictates the terms"

lol. Just kidding!
 

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