CNBC Welfare

CNBC is on its big-government kick again, the first real drive for the socialization of risk and the privatization of profits since the Bush-Pelosi Bailout. The subjects in the last half hour ranged from bailing out those who have mad mortgages, bailing out banks who gave bad mortgages, and also bailing out GM because they are too big to fail.

As Tom says in his latest post, controlling the knee-jerk left will be Obama’s biggest challenge, if Obama is elected President. Mortgage bail-outs can be one example. There are a lot of ways to increase affordable housing (such as subsidizing urban light rail and mass transit, which would allow more people to have apartments in the city and commute to work, without having an expensive car), and help the auto industry (such as heavily subsidizing alternative-fuel vehicles).

The other approach is to just write checks, which CNBC and many in the Democratic Party support.

If Obama wins, I hope he’s up for the challenge.

6 thoughts on “CNBC Welfare”

  1. housing becoming more affordable everyday. will do so faster if government would get out of it altogether. unfortunately, the gov will not sit and do nothing as millions of BB’s watch their precious home equity go up in smoke (along w/ their 401k [not that they’ll have one anyway once the dem’s confiscate.]

  2. More on corporate welfare… “GM, Chrysler Request #10 billion in aid,” [1]

    The article includes the predicted sop to the labor unions:

    But one of the conditions of the merger would be that GM-Chrysler would spare as many jobs as possible in order to win broad political support for the government funding needed to complete the deal, people familiar with the merger discussions said.

    But it seems to contain nothing about producing more alternative-energy fuel-efficient vehicles.

    [1] http://www.reuters.com/article/topNews/idUSN2735477920081028?feedType=RSS&feedName=topNews

  3. See my question here [1] on giving money to GM or Ford (I forgot to mention Chrysler).

    [1] http://www.tdaxp.com/archive/2008/09/28/the-detroit-bailout.html#comment-154721

    Actually here is the question:

    Given how many opportunities and how much capital Ford and GM have wasted the last 25 years (as indicated by the decline in their market capitalization), why should we expect that giving even more money to these companies, while removing the “Creative Destruction” effect (which is an incentive for survival, innovation, productivity, risk taking and improvement, that also has positive externalities to society in the form of jobs, better stuff, more individual freedom of consumer choice and better quality-of-life), would get better results?

  4. Good news:

    The Treasury Department has turned down a request by General Motors for up to $10 billion to help finance the automaker’s possible merger with Chrysler

    And even better:

    the Bush administration will now shift its focus to speeding up the $25 billion loan program for fuel-efficient vehicles approved by Congress in September and administered by the Energy Department.

    Hat-tip to New York Times [1], courtesy of Calculated Risk [2]

    [1] http://www.nytimes.com/2008/11/03/business/03gm.html
    [2] http://calculatedrisk.blogspot.com/2008/11/report-gm-turned-down-by-government.html

  5. .. while at the same time, Ford is restarting production on the F-150 [1].

    The global warming meme is a useful lie, but what’s really going on here is revving up a transfer of wealth (and all the harm that causes) to Putin’s Russia, Chavez’s Venezuela, etc….

    [1] http://www.autobloggreen.com/2008/11/03/ford-rehiring-1-000-workers-to-build-f-150-will-buyers-with-sho/
    [2] http://www.tdaxp.com/archive/2008/11/01/high-gas-prices-are-for-lack-of-better-words-bad.html

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