Monday, December 15, 2008

Bailout Landmine Commentary

As our elected leaders continue to grapple with allocating the new 850 billion of debt on behalf of all of us, with the intent of making our mutual economic future brighter rather than even more grim, I revisited the wisdom of Peter Drucker. It seems to Bonnett and I that the rush that allocated at least half of this amount, without having anything like the process we have recently witnessed for the auto companies, was foolish. Where is the accountability, to us as taxpayers? What provisions were built in to the allocations to make sure that our national interest was and will be served?

We are curious to actually be informed about whatever may be decided upon in the months to come, and to know if it will make sound business sense to the companies involved, and to us, the financers. It is only right that this happen prior to money being handed out, so we have time to weigh in on it prior to final votes.

We hope there are also provisions to call back in the money, and take possession of the outstanding company assets, should these beneficiaries of the money continue to make decisions that handsomely reward top management, while losing money and asset value.
It is our hope that the focus for the coming ‘jumpstarting’ capital infusion will be used to rebuild infrastructure, as that is the only way we can be assured of long-term benefits from such huge expenditures.

Please take a minute or two to click on this Peter Drucker link, as well as this Warren Buffet link, for some inspiration of how to do things in a more successful way.

- Richard Chandler