Barack Obama is getting advice from many corners about what to do on the economy, and what to do about the automotive industry. One particular opinion may mean more than others, since it is from someone that knows how to make money, and keep it too. Bill Gates has been making the rounds with his thoughts and theories on the economy and the automobile bailout. Not many of Gates’ opinions are what the automobile companies would want to hear.
On the automotive bailout, Gates told CNN that he questioned why no private investors were stepping in to help GM, Chrysler and Ford. The bailout request for the three former automotive giants will be debated today in Congress, with the companies seeking 34 billion dollars.
However, Gates asked CNN “When you don’t have any private investors you really have to say, is taxpayer money going to have the desired effect?”
“After all, they have to say ‘if no one else is willing to invest, why is that?” Gates asked to the government.
Gates has also come to Washington to give a speech on his economic wishes and goals at George Washington University. Despite the economic climate, Gates urged Obama to increase deficit spending in order to shore up new investments.
Gates will be increasing spending and grants for his foundation, the Bill and Melinda Gates Foundation, which Gates formed last year. He resigned from Microsoft this year to work full time on the foundation, which invests more than $400 million on grants.
Gates has also said that Obama should consider a farther-reaching economic stimulus program as a first step for the economy. To Gates, that plan would include scientific and educational investments.
While Gates touted his economic proposals and plans for the future, the automotive companies are down to their last resorts to get the bailout. It was reported by Bloomberg that GM and Chrysler may be accepting a pre-arranged bankruptcy plan, so that their companies can be reorganized without needing liquidation.
The fear is that if the companies go bankrupt, the entire industry would collapse and lead to fears of a full blown depression. But a planned bankruptcy could give GM and Chrysler a shot to contain the damage of bankruptcy- at least that’s what they will be aiming for.
AFP- “Bill Gates questions bailout for Big Three automakers” www.google.com/hostednews/afp/article/ALeqM5jXZNrdjgD2fKUuI65yFzkxDS8_zw
Washington Post- “Bill Gates Urges Obama To Increase Spending” www.washingtonpost.com/wp-dyn/content/story/2008/12/03/ST2008120303517.html
Bloomberg- “GM, Chrysler May Accept Bankruptcy to Receive Bailout” www.bloomberg.com/apps/news