Government Corporate Bail Outs - Free Money With No Consequences? | Ali Allage (SPT) - Online Marketer, Serial Entrepreneur, Writer, Automotive Enthusiast, Web Developer

Government Corporate Bail Outs – Free Money Without Consequences?

Government Bail Out, a phrase that sends chills down my spine. Why? Simple really. I think the government is wasting our hard earn money by giving it to companies who really don’t deserve it and the only reason why they are getting it is because they hold something over all of our heads… the economy self destruct button.

With the latest bail out headline involving the automobile industry, it really started to put things in perspective for me. Why is it that a small company owner, when applying for a loan from a bank, is required to provide a personal guarantor in order secure the loan (as well as list all available company and personal assets as collateral), but the companies receiving the bail out money are not required to provide any sort of personal guarantor/collateral to secure the bail out loan (other then company percentage)? I could be wrong but from the articles I’ve read so far, I haven’t really seen any sort of statement that proves me wrong or really secures a plan B for getting the tax payers money back if the company should fall on its face.

I think if you want to save our economy, stop giving money to the companies that have failed and continue to fail in a system designed to only benefit upper management. I can promise you that if you some how made the company decision makers personally liable for the company’s financial health you would see a difference in how the company is run. In my opinion, most of these large companies really don’t have that motivation or drive to really do what is needed to make the company truly successful. I believe the CEO’s (and upper management) get too comfortable with their big financial benefits and are not motivated by much to make the company as good as it should be.

Throwing money at the situation doesn’t change things. There has to be something that really makes these CEO’s motivated to better their company to pay us back faster and bring their company out of the financial red. If we continue to give money out like this, I’m afraid that it will only delay the inevitable. Make the CEO (or decision maker(s)) financially responsible for the well being of the company or else we will probably see more companies like Citibank come back asking for more money, which won’t be good for anyone.

If you have a opinon about this or you think I’m full of it, then let me know by posting your opinion.