A Bailout Riddle

Congress, people in the media, and even some people on the street are suggesting that the executives of GM, Ford, and Chrysler should lose their jobs because of the way the companies have been managed, or maybe mis-managed, to get where they are now. I’m not going to defend them, for I agree that the Big 3 haven’t done well with keeping up with what customers want and the innovation they need.

But…

Why did no one in positions of authority question whether the executives at financial companies should keep THEIR jobs? Didn’t they mismanage their companies into the credit crisis that, arguably, has made things worse for the auto and other industries?

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About songdogmi

I'm a longhaired almost-hippie stuck in the inner suburbs of a major rust-belt metropolis who's thoughtful, creative, and kind of geeky. In exchange for a paycheck I run around in a cubicle maze most days. When I escape, I play music, hang out in coffee houses, dink around on the computer, take naps, and think I should be off in the woods somewhere. Every once in a while I get in my car and drive far, far away, though I've always come back so far.
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6 Responses to A Bailout Riddle

  1. zenicurean says:

    Which executives should lose their jobs, according to these marvels of business intelligence? Since the Congress obviously neither hires or fires any executives for Ford, Chrysler or GM, all these people are presumably making their appeals to the relevant boards of directors and, ultimately, to major stockholders. And they’re apparently expecting… what? That said board members begin deliberating on which people they should fire over the steady and easily traceable decline of the American auto industry that’s been very clearly going on for years if not decades?

    • songdogmi says:

      Well… exactly. The problem isn’t the current CEOs and executive vice presidents. It’s every CEO and VP since the mid-1960s. And it’s not just them, but the entrenched corporate middle classes at the companies that in whatever ways resisted change or failed to initiate any change. AND the boards that failed to force changes.

      But it’s all a slippery slope. If the shareholders don’t clean house, then who’s to say anyone else has the right to clean their house for them? Unless the firms themselves are nationalized (which isn’t gonna happen), ultimately it is up to the board to either come up with the idea to sack the lot of ’em, or to bow to pressure (if you want this money, you’ll sack the lot of ’em). I doubt either will really happen, though I wouldn’t be surprised to see some replacements at the top.

  2. Hi, sorry to change the subject, but I think I just seen something from Mike Dorn saying that Sean Fitzgerald passed away? or am I on crack…

    • songdogmi says:

      No, I’m afraid you’re right. John Finan write about it at http://jjfmi.livejournal.com/103800.html. I don’t know anything more than it was a car wreck on Monday. I have heard that last night’s open mic at Trixie’s turned into a wake of sorts, but I was at AJ’s and unaware of anything till John called me around midnight with the news. There may be more news floating around MySpace by now.

  3. Mark was just relating to me the tale of how much money all these execs spent on their little trip to go beg for money.

    Private jets. Posh hotels. Finest restaurants.

    Cha-ching!

    So if we’re bailing them out, who’s actually paying for that?

    • songdogmi says:

      My latest car payment probably paid for one night’s accommodation for Chrysler’s CEO, but probably not for his dinners, I guess.

      They just don’t get it, do they? I always figured they weren’t getting enough oxygen in the rarefied air of the executive suites…..

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