Being a pragmatist, I am just not convinced that bailouts like this, this, and this are a good idea.  Don’t get me wrong, I certainly understand the impact of the business failure of any one of our Big 3 automakers on our economy, but how does a bailout hold them accountable for their failure to respond to the demands of the market?  They have been losing market share because they do not produce the kind of cars that consumers want and they have been exceedingly slow to respond to changing tastes.  Consumers have shifted in favor of higher fuel economy cars for thirty years and the Big Three have lagged by at least five years in providing one or two options per brand rather than the full line-up that our global competitors have offered and expanded upon for over 20 years.  We should not be rewarding obliviousness on the part of the management of these automakers.  You should have seen in the 70′s you weren’t the only choice instead of taking an extended recess and allowing your competition to eat your lunch.

The same view applies to big insurers and, of course, our banking industry.  Thanks to your ego and misguieded priorities, your business model is fundamentally flawed.  You have not used sound judgement or basic management, accounting or finance principles.  You have even managed to circumvent the requirements for earning your bonus away from sound criteria so that even though your business isn’t making money you are getting yours.  Now you want my money too?  NAY! I say!  Nay!

So how do we fix it?  I think any kind of ‘aid package’ should come with some common sense.  All these folks ask for handouts with no strings and I think that needs to stop.  If you want the taxpayers’ money, then the taxpayers have a right to demand that you make fundamental changes to your current operating procedure and fix the things that are fundamentally wrong with your business.  You ask for money, we ask for full disclosure including an external audit of your accounting.  Anything not quite on the up and up… no deal.  If the audit goes well, we still expect full disclosure and sound practices until the taxpayers get their money back.  And Mr. or Ms. Overpaid Chief Executive?  That means you and your entire management team take a pay cut.  How can you prove you’re earning your paycheck if you’ve run your company into the ground and are now panhandling to the Federal Government?