Well it seems that the lame duck senate won’t even vote on the auto rescue. I agree with what Gary said below. The shareholders of these companies should be wiped out for putting up with years of mismanagement. I think the Congress should, in the short term, take over the companies and put someone in charge of reorganization, maybe a bankruptcy judge. If the Big Three’s failure is going to rock all Americans psychologically, then Congress can just pass a law to do the same thing and call it something else–I don’t care, just don’t give these incompetent management teams continuing control.
“No matter how hard we work, not matter how hard we try, the House of Representatives is going home tomorrow,” Reid said yesterday. “We have to face reality.” Which begs the question: what did this session of Congress do exactly? They made a lot of noise and did nothing. It began as an emergency sessions to put a “down payment” on the to come Obama package. Instead we have had some Washington style fighting about TARP and the auto industry.
Now, sure, Oil is below $50 a barrel. That might sounds like a good thing, but it also might means possible deflation, and there has definitely been a huge decrease in consumption. As the Times says “The speed of the falloff is a testimony to the world’s dire economic straits” and what has Congress done–nothing. I’m not saying that should do anything about Oil prices (although this may lead to the periodic disregard for environment issues), but that we’re in serious economic times and they’ve done nothing.
All but dead are the real stimulus proposals—assistance to states in the form of higher federal Medicaid payouts, money for infrastructure projects etc. Many observers are saying we need a stimulus package, and a big one to boot (Krugman says we should run a trillion dollar deficit), but neither Senate Democrats nor Republicans gave a $100 billion package much consideration on Monday.
So as the Economist put is “So, lots of deadlock, acrimony and short-sighted bickering. I can’t think of a more suitable way for the 110th Congress to end.”