Main-street U.S.A. has long been aware that there were big troubles brewing in the economy. The how's and why's were not apparent, but rising prices, zero or minus wage gains and cut-backs in hours were signs main-street recognized as being "not good". Mediocrity was pervasive at the executive levels of corporate America, coupled with the mediocrity of Congress. The most prized positions in corporate America, those with title, disproportionate incomes, perks and outrageous bonuses, not for performance, but because of connections, had much to do about the collapse of the U.S. economy. Congress aided and abetted the collapse by its arcane rules promoting those with longevity to committee chairs regardless of competence in the subject area of the committee. The reluctance of Congress to pass a term limit amendment was and is the breeding ground where the brightest 10% of members are virtually drowned by the 90% who are incompetent. The same holds true for the captains of corporate America. Add to the mix a team captain who was not playing with a full deck, George Bush, and it's know wonder the true colors of those raping the system were not sooner exposed.
Adding insult to injury, main-street U.S.A. is still paying the price for this combined corporate and government incompetence. Businesses continue to close, unemployment accelerates, and all the while Treasury Secretary Paulson continues to loot the U.S. Treasury so corporate executive rapists can continue their glutinous ways. Those in the U.S. possessed with a modicum common sense have to be asking: why throw good money after bad ? why pay and essentially reward bad behavior and poor performance ?. That is what is being done by giving billions of taxpayer dollars to the corporations and executive management teams that got us in this mess in the first place.
Chapter 7, not Chapter 11, is where AIG, the financial firms, and others in the bail-out line should be. Why prolong and aggravate the pain for main-street by first looting the U.S. Taxpayer/Treasury ? A very few, very rich, are the only beneficiaries of Congresses myopia. The election of Obama was main-streets signal to Congress that the public wants a NEW GAME, not simply another quarterback. Corporate America, Wall-Street and Congress have to quit their addiction to "trickle-down Reaganomics ". Yet, there is no sign that Congress is willing to take the "throw cash" needle out of their arms and consider unique solutions to the problems they have had a heavy hand in creating, e.g., Public Law 106-554 Sec.1(a)(5), the Commodity Futures Modernization Act.
Congress can't seem to grasp a very simple concept: jobs, good jobs are the foundation of a sound economy. Who should be funded, bailed-out, at taxpayer expense; it's a no brainer - the middle-class, main-street taxpaying U.S. citizen. HOW, by extending fed rate ( the rate banks pay the Fed to borrow money ) funds to the major Unions and employee groups, like the UAW, for the purpose of purchasing the plants, equipment and other assets of bankrupt corporations, the likes of G.M., Chrysler and/or Ford. Employee owned corporations are not that novel of an idea. The loss of jobs, only temporary, and can be adequately covered by extending unemployment benefits. The U.S. taxpayer is paying, and should be getting some direct benefits. Congress, and it appears, soon to be President Obama, may be sticking their heads in the sand, by continuing to beat the existing bail-out/stimulus horse to death. Main-street deserves more from the "Master's of the Universe".
If the sinking ship has any chance of being saved, it will be by taking a completely different approach: Congress promoting and funding Union and Employee owned corporations formed to purchase the assets of Chapter 7, corporations; and cutting off all bail-out funding to the likes of AIG and others lining up for Treasury Bail-Out funds. Corporations that require taxpayer bail-out funding to exist should be allowed to fail, that is why there is Chapter 7, of the U.S. Bankruptcy laws.
