Wednesday, February 11, 2009

EU says France's auto bailout may pose problems



France's proposed EUR 9 billion ($11 billion) bailout of automakers Renault and Peugeot-Citroen is only possible thanks to loans that the U.S. Fed provided to Europe. American taxpayers are unwittingly funding France's automakers while Congressional lawmakers and many continue to demand their destruction.

Read story here.

2 comments:

googleheim said...

this is probably irrevelant, maybe not :

Moveon.org is co-opting the tax payer "concern" with a petition:

Limit Salaries at All Banks Taking Taxpayer Dollars :

http://pol.moveon.org/bonus/?r_by
=15520-5730226-EnRB.Bx&rc=mailto

However, they don't say anything about US funding of of EU banks nor EU auto makers.

Is it really tax payer money or is a function reserve deposits being injected into the (foreign) economy.

Since when do left centrists care about taxpayers ?

Mike Norman said...

When they say "banks" do they mean just commercial banks or all entities in the financial sector such as non-bank intermediaries or for that matter, any entity that functions in the capacity of a financial intermediary like GE? If they mean just commercial banks, then they are unwittingly destroying the banking system in favor of an unregulated system of financial intermediation. That's what we had. That's what didn't work. What is unbelievable is that Geithner's plan actually moves us in this direction. Banks should be allowed to continue functioning, but as regulated utilities and all intermediation should be stopped, or most of it anyway. We'd be a lot better off. Intermediation adds nothing of value and creates a perverse use of capital--human and otherwise.