Tuesday, May 5, 2009

Peter Schiff on Chrysler and the Obama Control Economy

Peter Schiff explains the difference between an Obama Control Economy ("OCE") and a Free Market Economy, here.

I don't believe for a minute that OCE will stop with the auto industry and banking. These were the lay ups. Given that Obama fails to understand the fundamental points made by Schiff, any and all industries are potential targets.

What's next? Probably the healthcare industry.

1 comment:

  1. Peter Schiff suggests that the financiers could do a better job of running the auto industry than auto makers. He also suggests that new owners could hire high skilled people for less money making automaking profitable.

    Peter Schiff is an ass. Has financiers running manufacturing companies done anything but create more problems? Corporate raiders, breaking up healthy companies after leveraged buyouts and using the proceeds to pay off their bets, have caused managers to employ unhealthy, short term management strategies to avoid being takeover targets. How would lower wages give people incentive to use and develop skills? Should they not all do like a talented woman I know with a masters degree in biomedical and industrial engineering? She has become a financial planner due to the lack of reward in engineering.

    The time is way past due when the excessive and nonproductive reward structures were banished from the management and financial worlds. The system has become so grossly out of balance that it is ready to collapse. Could the government do a poor job of managing car companies? Or banks for that matter? Probably so. Has the current management of both done a terrible job? Definitely so. Could the government do a worse job than the businessmen and financiers currently in charge? They would really have to work at it.