Now that CIT is on the mend without a bailout and the Treasury/Obama put their foot down that the bailout craze is over...where are the Mea Culpas from the
"We have to Bail Out CIT or Else 700,000 Small Businesses will fail!!!!
Another respectful and fruitful debate on an important DKos topic with no doughnuts thrown...thanks for your participation!!!!
Yes it was painful and expensive for CIT and their shareholders, but hey, their risk-taking CEO and the CIT BOD took those unnecessary risks with a 100+ year old profitable company and almost bankrupted it. So why should we have bailed them out. In fact, part of the calculus was that CIT had other options and that the Federal Government bailout should be a last resort option...not a first one.
This also sent an important message to banks and financial institutions, get your houses in order and keep them that way, because there is no more bailout money for anyone and in fact, we the taxpayers are in collections mode now...so pay up as quickly as possible.
The other message is you screw up it will cost you dearly and may cost you your job. You can go gravel to your creditors and beg them to take $0.60 on the dollar and take loans at 3% above LIBOR to cover your ass and it will take 2 years for your earnings to recover. But that is the price of making bad decisions.
So I am looking for some Mea Culpas here for the "We Haveto" crowd...because we "Did not Haveto" and thus we should not have.
We can debate and have debated the original bailouts as to whether they were necessary, I say they were many well meaning and smart people say they were not necessary or other alternatives would have been better. But we did it...it is done and now we should move on and end the bailout culture before it becomes a culture.