President Barack Obama forces CEO Rick Wagoner to resign for $20,000 000 and promises to guarantee automobile warranties!  This is the first time ever that the U.S. government has fired a CEO of a large corporation.   Wagoner out, bank CEOs Safe!  Huh?!

President has “No Interest or Intentions of Running GM” … Oops, too late!

In a news conference following the resignation of Rick Wagoner, the President said that ”the United States government has no interest or intentions of running GM”, however … that is exactly what he is doing.  It is the job of the Board of Directors to hire and fire the CEO.  Barack Obama, whether he thinks so or not,  just took over the responsibility of the Board of Directors.  There is no decision more important to a corporation.  He claims he has a new “vision” for GM in the future.  What makes his “vision” a valid business plan?

U.S. Goverment to Guarantee Automobile Warranties?

He went on to say that the US Government would guarantee automobile warranties.  Warranties are a business within themselves.  They are sold … not given away.   The price of the protective warranty is built into the price of the vehicle when it is sold.  The money is made up front.  Warranty reserves are set up to pay for the estimated repairs based on failure experience rates or “Service Call Rates”.   This is basic to all products that provide warranties.  There are tons of businesses out there that would be happy to take over the warranties and service of every car sold … as long as they get paid!  Now it seems the President is willing to let the US taxpayer pay for them after GM has already taken the money!  This shows the total lack of understanding of basic business by the White House.   

Which is Worse?

Which is worse,  letting GM and Chrysler be reorganized through bankruptcy courts with a chance of surviving stronger or letting them completely fail by letting the White House take over and call the shots?  What gives the White House the experience or knowledge to run one of the largest companies in the world?  Is it the great success with the takeover of AIG?  Could it be the great success the U.S. Government has shown with Amtrak and the US Postal Department?  So, far as I can recall, no one I know of currently in the White House has ever so much as ran a Dairy Queen.

Please don’t misunderstand what I am saying.  I don’t know whether Rick Wagoner should resign or not.  He probably should! (For twenty million bucks I sure would!)  However, the guy who just asked him to do so has zero business experience and an obvious lack of business knowledge.  The White House definitely has no business making that type of decision for any Corporation.

The White House continuing to believe they know how to run the Auto Industry is ludicrous.  Whether it be arrogance, overconfidence, or just plain lack of experience and knowledge doesn’t matter.  Continuing to burn huge amounts of taxpayer money to avoid restructuring in bankruptcy is not the answer.  Government running large corporations is not the answer.

A Real Boomer’s Answer

Cut off the money!  They should never have got any in the first place.  Let the Corporations figure out their own path to success or failure.  They will figure it out.  They have a much better chance of succeeding without government help!  There are times when doing nothing is the right answer!  Papa B.

Also see:

Auto Bailout or Bust?  Should Boomers Believe It?

Common Sense is something most Baby Boomers survived on growing up.  At one time, it seemed like something you needed.   At one time, it seemed like most people had it.  It’s not that many of us don’t still have it today, at least I thought so until I read some of the stuff on this site called debatepolitics.com.  If you read the stuff on this site there are a few glimmers of common sense, a few glimmers of comedy, and a whole lot of personal preference.  Sounds much like the new Economic Stimulus package.  For the most part it misses the point and lacks basic common sense.

A few simple common sense questions:

• Does it make sense to have to wear a seat belt in a car, but not wear a helmet on a motor cycle?
• Does it make sense that a child must be in proper child restraints when riding in a vehicle, but can ride on a motorcycle or in the back of a pick up truck?
• Does it make sense that some people wouldn’t think of throwing a gum wrapper on the ground, because it is littering, but don’t think twice about throwing a lit cigarette butt out the window of their car or in the Walmart parking lot?
• If Corporations don’t pay out bonuses, who provides the money to stimulate the economy that would have been provided by the spending of those bonuses?
• If the purpose of providing bail out money is to create spending,  then why are we trying to prevent spending by the Corporations we bailed out?
• Is the economy stimulated more by a Corporation purchasing  a $50 million dollar airplane, or the government providing free contraceptives and STD protection to the underprivileged?  Most liberals and many others may not agree with me on this, but the airplane purchase at least creates jobs for those who build it.  The only thing that free contraceptives and STD protection stimulates is something in the back seat of a car and it ain’t the economy!
• Should our lawmakers be able to spend tax payer money on lavish retreats for themselves and families (to see Kingsmill resort and Spa – the location of the Democrat Party retreat this week Click here ) just prior to returning to working on the “Stimulus” package, at the same time they complain about large corporations doing exactly the same thing?
• According to Speaker of the House, Nancy Pelosi, every month we don’t pass this stimulus package, ’500 million Americans’ will lose their jobs.  Since according to the US Census Bureau there are only 305 million people in America, is it possible for 500 million to lose their jobs? … Or is that just the “Fear Factor“?

Common Sense And The Economy

Don’t forget, the thing that started this whole mess with the economy, in the first place, was banks loaned out money to unqualified borrowers.  For the ten years prior to 2008, Fannie Mae and Freddie Mac were heroes for helping everyone, including those who couldn’t really afford it, experience the “American Dream” of owning their own home.  Lending to unqualified buyers was actually encouraged by the government.  Then, when all those borrowers began defaulting on the loans that they couldn’t afford to begin with, the banks were heavily criticised and held accountable for lending the money without proper review and regulation.  Sounds kind of like the “vetting” process for Obama cabinet members.

Catch 22

Now that the regulations have been tightened, the lending institutions are being criticised for not lending out the money that was provided by the first financial bailout package.  A big part of the problem with loaning out the money as it was intended, is that they don’t have enough qualified borrowers under the new rules.  All of a sudden, you actually need a down payment and a job to get a loan!  Imagine that!  Common Sense – Catch 22!

So, What is the Problem?

The real problem, as I see it, is that too many self-serving lawmakers don’t seem to have any common sense.  Either that, or they do have it and they don’t think anyone else does.  Their concern for getting votes far exceeds any desire to do the right things from a common sense stand point.  (I guess that if you are a politician and need votes to stay in your job … that makes “common sense”.)  They obviously believe that there is a large group of people that will abandon common sense for personal gain.  So far they seem to be right!  Their purpose is to cater to that group and their private interests  in order to gain enough votes to keep their jobs.  Then, they end up creating laws, regulations, and spending packages that prevent those that do have a little common sense from using it.  To get those bills passed they again target those willing to sell out common sense for personal gain by adding needless pork.  To sway the uninformed and the ignorant they simply create panic and fear!  Panic and fear trumps common sense, or it at least distracts people from using it.

For a list of stupid laws Click Here!  (Some of them are pretty funny!)

Help!  Where’s Common Sense When You Most Need it?

• The first stimulus package had some of it.
• The first bailout package lacked a lot of it.
• The next $700 billion bailout package forgot about it.
• The Auto bail out showed none of it!
• And now, the current Stimulus Social Entitlement Spending package under consideration of the House and Senate includes very little of it.

Common Sense is still an important asset.  Boomers need to insist on it!  Our money is being flushed down the toilet by the lack of it.  Don’t be Boom-bazzelled by the BS!  The world still runs on it … it’s time to start using more of it!  Papa B.

Obituary printed in the London Times

The following is an obituary that was printed in the London Times that helps bring things back into perspective.  You may have seen it already.  Many different versions of it have been circulating on the Internet.

Today we mourn the passing of a beloved old friend, Common Sense, who has been with us for many years. No one knows for sure how old he was, since his birth records were long ago lost in bureaucratic red tape. He will be remembered as having cultivated such valuable lessons as: Knowing when to come in out of the rain; Why the early bird gets the worm; Life isn’t always fair; and, maybe it was my fault.

Common Sense lived by simple, sound financial policies (don’t spend  more  than you can earn) and reliable strategies (adults, not   children, are in  charge).

His health began to deteriorate rapidly when well-intentioned but overbearing regulations were set in place. Reports of a 6-year-old boy charged with sexual harassment for kissing a classmate; teens suspended from school for using mouthwash after lunch; and a teacher fired for reprimanding an unruly student, only worsened his condition.

Common Sense lost ground when parents attacked teachers for doing the job that they themselves had failed to do in disciplining their unruly children.

It declined even further when schools were required to get parental consent to administer sun lotion or an Aspirin to a student; but could not inform parents when a student became pregnant and wanted to have an abortion.

Common Sense lost the will to live as the churches became businesses; and criminals received better treatment than their victims.

Common Sense took a beating when you couldn’t defend yourself from a burglar in your own home and the burglar could sue you for assault.

Common Sense finally gave up the will to live, after a woman failed to realize that a steaming cup of coffee was hot. She spilled a little in her lap, and was promptly awarded a huge settlement.

Common Sense was preceded in death, by his parents, Truth and Trust, by his wife, Discretion, by his daughter, Responsibility, and by his son, Reason.

He is survived by his 4 stepbrothers:
I Know My Rights
I Want It Now
Someone Else Is To Blame
I’m A Victim

Not many attended his funeral because so few realized he was gone.

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