True free market would refuse bailout

So Charles Krauthammer in his December 2 column wants the Democrats to rescue this economy and return it to market control?

If Chuck was really a believer in the free market economy, these companies that caused this economic fiasco would simply fold and go away. But we all know how people like Chuck like to have their cake and eat it too in privatizing profit and socializing risk. Possibly the extinction of these companies would get the attention of all of those people who think government intrusion is unacceptable and big business should operate unregulated.

Businesses need oversight by independent auditors and in the cases of public companies, government regulation. Shareholders need to demand this otherwise, the financial markets would be more of a house of cards than it already is. Or, as an example, the Big 3 automakers, should file for Chapter 11 protection.

In this way, the bankruptcy court would direct the overhaul of management, labor and overall operations. If the new management develops a viable business plan, then they survive Chapter 11. If not, they fold. But current management will be against Chapter 11 and do their best to protect their extensive perks. As will the unions.

But people need to understand that these old business models cannot and will not survive in this global marketplace. And a bailout to these companies, as with all of the other bailouts, is very inappropriate.

Kevin Martin

Schaumburg