Financial industry vs. Auto Industry

[Lynn Farris]

When talking about the bailout of these two industries, I certainly understand the people that are for allowing the free market to work and not helping either. I also understand the people that think these are both two important industires and we can't allow either to go under.

Where I have my problems are people that think we should spend 700 billion on the financial industry but not 50 billion on the auto industry.

I heard today primarily Republican Congressman talking about requiring the heads of GM etc. to step down since they had such bad management that led to this crisis. While I think there are extenuating circumstances, I can concur with some of this logic.

But what I can't understand is why this same logic isn't being applied to the Financial Industry as well. These are the people that came up with these bad mortgage ideas and sold themselves into the situation they are in today or insured these bad mortgages - which they clearly understood. Yet we hear that they are saving at Goldman Sachs 6.1 billion of our bailout money (1 /10th or 1/5th depending on the number you are using of what the auto industry needs to keep people employed) on bonuses for their top executives.

And some people are arguing that they need this to keep this talent instead of requiring that they replace these people who were some of the people who led us into this deep recession.

If the heads of the auto industry should be replaced with new executives, shouldn't we also require that the heads of the financial industry be replaced as well? At the very least shouldn't we insist that not one dime of money go to reward these people who caused these problems until the taxpayers are paid in full for this loan. (That way they can't say the bonuses were from their earnings while asking for more assistance.)

[Stephen Eisel]

I heard today primarily Republican Congressman talking about requiring the heads of GM etc. to step down since they had such bad management that led to this crisis. While I think there are extenuating circumstances, I can concur with some of this logic.

But what I can't understand is why this same logic isn't being applied to the Financial Industry as well.

Good point! How many times would you let Mr. Magoo drive your car (clicky)

[Jim DeVito]

If you take government bail out money... You should have your top execs fired and forced to pay any bonus the receive toward the principal.

As far as the Auto industry goes they should all be fired. They have spent years in "turn around" with no results. Only difference now is they want to do it with your money.