Daily Archives: December 12, 2008

Peter Schiff: “Somebody should stand up to this lunacy”

Posted on by

CNBC – 12/10/08

Central government planning doesn’t work. Washington knows even less about running the automobile industry than the guys in charge at GM now.

We’ve got to let these companies go bankrupt, free up their capital, let somebody come in here who knows how to make cars profitably – that can employ these autoworkers in a way that is profitable. I think that if we let these companies go bankrupt, in 5 years there will be 2 or 3 times as many people employed in this country making cars….and we’ll be exporting cars.

Bailout out Wall Street didn’t help out the stock market – it went down. Bailout out Detroit is not going to help. These are moral hazards. The reason that they’re getting this bailout is because they’re saying “we gave all this money to wall street!”

Who is going to be next? What’s the next failed business that’s going to say “You bailed out the car companies, how can you say no to me?”

You can’t punish the successful companies to bailout the incompetent companies. This is the exact wrong thing that we should be doing. Somebody should stand up to this lunacy.

This credit crunch is not the problem – it’s the consequence of the problem. As a nation we’ve borrowed too much money. We borrowed money to speculate, we borrowed money to consume. The solution is market tightens up on credit because we’ve blown all the savings. We need Americans to stop borrowing. We need them to start saving their money. We need to start making stuff and not just consuming things. That’s what the market is trying to do. That’s why we have to let the recession run its course.

Author: PopulistParty
Keywords: peter-schiff bailouts economy economics GM auto-industry auto-bailout
Added: December 11, 2008

Posted in Uncategorized