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can we make
A RECESSION PAINLESS? Part 2

GET THE FACTS BEHIND THE NEWS

The Congress and the Executive branch of the Federal gov’t have embarked on a new mission. How to make a recession painless. The federal gov’t has agreed to spend $300 plus billion on bailouts of various companies plus $750 billion to ease banking liquidity. This does not include $160 billion economic stimulus payment with talk of another stimulus program probably as much or more. This is in addition to $420 billion Federal deficit budget.

Diogenes is concerned that the measures taken so far are essentially blank checks to the same managements that appear incompetent and failed their company and the public. AIG Insurance was a large well financed insurance company. Management has changed recently. Maybe it should change again. AIG was originally given $85 billion and requested an additional$37.5 billion. General Motors received $25 billion and has now requested an additional $25 billion. GM is a company that was at the top of its field. GM has been going downhill for 40 years. Diogenes believes the Congress should demand new management and demand all models of GM have hybrid engines within three to four years.

This system of subsidizing inefficient companies only leads to trouble further on. It is a system used by communist China before they decided to modernize. One day in the near future you turn around and you have a whole range of inefficient companies that can not compete in the marketplace on their own but require constant subsidies.

Next we will discuss the validity of the gov't(public) making good on everyone’s loses.