General Motors Bankruptcy

The failure of General Motors is the most recent in a series of events that could destroy this country. The United States of America that will emerge from this current crisis will not be the same as the one we grew up in. We have lost our leadership in the world. Our capitalistic society has succumbed to the very faults that have always been touted by anti-capitilists. Greed has destroyed the country as we have always known it. A new country must arise from the rubble.

What happened?
My opinions have no basis in expertise so take me with the proverbial "grain...".
Several factors played into this situation. High level business leaders with the ears of influential lawmakers convinced said lawmakers to relax regulations in favor of quick easy profits. It worked. Huge financial organizations made unbelieveable
profits with activities that would have been poorly received in a less de-regulated environment. There was no consideration of the long-term effects. Everyone looked at the short term and expected no significant change in the world financial environment. Those few who had the foresight found their vision obscured the euphoria of quick, almost limitless wealth. Resources were "invested" into esoteric financial "paper" that had no intrinsic value. Banks were encouraged to loan money to anyone with enough education to fill out the paperwork. All was well as long as the economy expanded. Nobody remembered that there is a cyclic property in the economy.

Lending and borrowing are the foundation of the economy that this country has embraced. This causes a detachment from the real world and there is "money" in the system that is based on a concept instead of a thing of value. This imaginary money is subject to rapid fluctuations based on emotion and not on real world values. Everyone who makes profit from manipulating

these fluctuations knows this. I suspect it is even discussed behind closed doors in high corporate offices. This recent crisis followed a period where huge "profits" were ascribed to loans based on inflated real-estate values. This was OK but the
inflated values could not withstand a precipitous downturn in the economy. Along came our enemies in the world. Perhaps with actual knowledge and skill but more likely blind luck they managed hit us where we were weakest - a fragile economy.

The WTC attack and the subsequent wars chipped away at the foundations of our economy. While oil companies enjoyed the protection of their in-pocket lawmakers oil prices escalated. The worst impacted were the people who were barely able to afford it. People began to make choices between mortage payments and fuel to heat their homes or gasoline to get to work. Imediate needs take precedence. Loan defaults increased; real estate values collapsed; and the imaginary money in the system
lost its perceived value. Companies were suddenly reporting losses...etc.

It is my opinion that these companies did not lose money. What they lost was some imaginary inflated value. As is always the case, only the people at the bottom actually lost anything. We have lost jobs, we have lost the small bit of real value we invested in our homes. We are the loosers. We are also the ones who will have to pick this economy back up if it can be done. We are being called upon to sacrifice. Some people can look at history and learn that world war two was won by the American
people who sacrificed at home to promote the war effort. We must all give up some of what we demand for ourselves in order to make this country great again. Once we have the country back on top we can go back to demanding our personal piece of the pie but in the meantime we can all support the "war effort".

We cannot blindly accept President Obama's Plans but we must not continue to oppose them just because they are his. Be willing to make a sacrifice for the effort - stop demanding lower taxes. The government is the only entity with the resources to finance the recovery. We need to support progressive taxation to increase the government's resources. I'm unemployed and have yet to receive an unemployment check. I cannot pay taxes til I get a job. Those of you who are working should consider paying taxes as contributing to the war effort. Those of you who are living well above the poverty level should be paying a slightly higher tax. Those with incomes exceeding 100K should be willing to pay an even bigger tax to support the government of the country that gave you the opportunity to achieve what you have. I still promote raising taxes and I vehemetly oppose any effort to blindly lower taxes until the economy can support itself without government crutches.

Propping up the new General motors by buying a major portion of the company was necessary to keep people working. When the stock value comes back in a couple years the government can reap a profit from the return of the stock to the private sector. For now we need to be sure the government has the resources to stand up to the onslaught. Support taxation for the war effort!!