BAILOUT

The bailout failure should come as no surprise. Did I not suggest the likelihood?

I would call attention to a comment by 'B-Bob" that I posted today to my Dec 9th or 10th blog about the automobile maker's bailout.

The writer makes valid points which we tend to overlook, but certainly played a prominent political role in the Southern Republican's opposition to lending GM and Chrysler money'

The foreign companies who are producing cars in the United States located their plants in Southern States where they not only received large subsidies but also were able to negotiate union contract wage levels that are at least 5/7th that of the Michigan-Illinois-Ohio plant contracts.That alone lowers labor costs by about 30% before other more favorable management labor fringes are included. It doesn't take a math genius to figure that out.

``````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````The An other side of the coin is that the big three have outsourced the manufacturing of their money making lines to either the Southern foreign owned plants or to foreign countries such as Australia or Brazil.

Those Southern Republican's have not taken in to account the impact on the plants located in their state.

Obviously, I have no valid shareholder argument against bankruptcy in regards to Chrysler since it it privately held by a " risk investment" management group. They do not deserve a public rescue that was denied the stockholders of Lehman Brothers.

While on the subject of "High Finance", how could the watchdogs let the 50 billion Ponzi scheme go undetected. It is an axiom that "if it is too good to be true it probably is not". Yet the list of big investors is amazing. Greed seems to be the dominant factor that has led to the market collapse.