Take a Reset People....looking Back

Lets go back....of course we can never really go back but ...what If?

When in September and October of last year we started getting the real news of the very major turmoil in our financial and automaker worlds. The banks and automakers were literally at the very edge of collapse. Meetings were held and decisions were made to prop up companies that frankly couldn't pay their bills and more importantly couldn't borrow money to get them through this period of low or no sales and mortgage defaults.

Much has been said about socialism,communism and the growth of Big Government and how this is bad and how Obama wants to do all kinds of reckless things to our country. Some people even say ...just let them go , let the Free Market work its magic....let them fail . Where would we be today if all of the following were out of business and not meeting their obligations.....ALL AT THE SAME TIME; GM, Chrysler,AIG,untold banks,Citibank, Wamu,Freddie,Fannie,thousands of suppliers in the auto supplier channel and many other small businesses that feed off the above companies.

I'll tell you where we would be....we would be in a place where nothing is happening . We would be trying to get back to some form of operating environment but all the time trying to rebuild a system....it would be very Bad. Unemployment would be much higher and the cost of cleaning up this mess would be much greater than the cost we will have to pay now.

By doing these various bailouts , workouts and propping up our Federal Government has bought us time. The real value or importance of time is to spread the losses over time. By doing so the system can manage to absorb the impact of each separate loss.