Tuesday, August 3

Back Home Again

BLUE Indiana reminds us that the predictive powers of Mitch "The Pocket Kreskin" Daniels remain sharp as ever, and extend beyond one month in every eighteen of his own state's revenues:
Back in 2008, when it became apparent that GM and Chrysler would become victims of the economic collapse, taking more than a million jobs with them, Daniels confidently predicted that efforts to save them would fail:

"Let's give Congress a chance, but there's nothing in recent history that suggests they have an answer for this," Daniels said. "The only thing we know for certain is the way they've been doing business does not work and throwing taxpayer dollars after it won't make it work." (emphasis added)

Y'know, you really can't underestimate the value of having all the answers, or The Single Answer, can you?

But let's go ahead and look at that recent history, up to the now clearly-successful bailout of GM and Chrysler, and the stimulus of Cash for Clunkers, shall we? Here's a chronology of recent bailout history in convenient balloon form:

So, left to right: Penn Central, 1971, the government provides $676 million in loan guarantees. By 1976 it consolidates what's left of the rail system in this country to form Conrail. In 1981 Conrail began turning a profit. In 1987 under pressure from the administration of Ronald "Government is the Problem" F. Reagan the G sells Conrail for $3.1 billion, something like a $15 billion loss all told. Once it's returned to private hands Conrail becomes really profitable; economically healthy railroads bought up the stock and cannibalized the system, an economic disaster for communities which lost rail service, and a grand excuse to put even more trucks on the road.

Lockheed, 1971, paid off its loans by 1977; government makes about $112 million on the deal.

Franklin National Bank, 1974: Yes, Virginia, bankers were well-known crooks even before the current era; the FDIC winds up being owed $185 million in interest.

New York City, 1975, receives government assistance until 1986; all the money, interest, and fees have been repaid.

Chrysler, 1980: paid back in full seven years early; G earns $660 million in profits into the bargain.

Continental Illinois Bank and Trust, 1984. Gee, more banking criminality. FDIC loses $1.8 billion.

S&L Debacle, 1989. Everybody sing. You surely know the words by now.

Airlines, 2001: Eventual $150-300 million profit for the government, depending on whom you ask. Minus a $23 million loss when ATA declared bankruptcy.

Of the Wall Street/Global banking bailouts in the interim, well, some say they averted global financial collapse, which would be worth somewhere between nothing and infinity, depending on whom you ask. As to what was wrong with those, and how he, the man who brought in the Iraq war for three easy payments of $19.99, would have handled it, I guess we'll just have to wait until Candidate Daniels faces the bulldog questioners of the nation's Press. At any rate, "recent history" doesn't merely suggest, it tells us that bailouts really do rescue vital industry, save jobs and tax bases, and even turn a profit sometimes, unless you get libertarians and other crooks involved.

Meanwhile, after giving a little facetime last week to perennial 7th District Republican loser Dr. Marvin Scott for his "Andre Carson is a dangerous, polygamous, adulteress-stoning Muslin!" campaign, Channel 8's Jim "the Dean Broder of Local Indiana Politics" Shella turned his searing analysis of the approved script towards Indiana's Second, where incumbent Democrat Joe Donnelly is facing Republican challenger Jackie "Five Bricks Short of a Hod" Walorski; Shella informed his viewership that Donnelly was so frighted by "the current political landscape"--Dean Broder Shella loves him some "current political landscape"--that he'd Gone Negative, Even Though It Is Just August. Later it was explained that Going Negative in this instance consisted of criticizing Walorski in his campaign ads while she, as is proper, merely called on Jebus to smite every Healthcare-loving Liberal Democrat, Donnelly included, before they finished destroying America Herself.

So, in light of this newfound information, I will refrain from claiming that Jim Shella has been bought by the increasingly insane ruling party of Indiana for the price of a few cocktails. I now understand that this would constitute Negativity. Instead, let me just point out that every political reporter everywhere is a lying sack, a whore-dog, and a cheap booze nozzle. I think that's got it. And wow, I suddenly feel fresh all over.


Kathy said...

"..throwing taxpayer dollars after it won't make it work."

Yeah, when did returning taxpayer's dollars to taxpayers do them any good?

heydave said...

I remember when banks gave away balloons to customer's toddlers.

Wheels within wheels, man.

heydave said...

By the way, do you have a source for that balloon image? Love it.

StringonaStick said...

Hmm, a review of this information indicates that the worst repayment scoflaws are banks, and everyone else tried and usually succeeded in repaying their gubmint loans. Perhaps if the failure to repay penalties were more in line with what the banks dish out to their customers on a regular basis, this might have been nipped in the bud.