TREASURY DEPT. WATCHDOG: BAILOUTS ONLY ADD MORE RISK TO AN ALREADY STRESSED ECONOMY

From Power and Control:

WASHINGTON – The government's response to the financial meltdown has made it more likely the United States will face a deeper crisis in the future, an independent watchdog at the Treasury Department warned.

The problems that led to the last crisis have not yet been addressed, and in some cases have grown worse, says Neil Barofsky, the special inspector general for the trouble asset relief program, or TARP. The quarterly report to Congress was released Sunday.

"Even if TARP saved our financial system from driving off a cliff back in 2008, absent meaningful reform, we are still driving on the same winding mountain road, but this time in a faster car," Barofsky wrote.

Bailing out businesses which are not solvent based upon their own decisions is always a bad idea. If a business is not well-run before an infusion of cash, if they don't make managerial and operational changes, giving them more cash is only going to increase losses.

For instance, Chrysler and GM took bailout money. They continue to lose money to this day.

Ford did not take stimulus money, and they posted a $2.7 billion profit for 2009.

Ford had to bite the bullet, and figure out how to fix their problems. An investment in a losing plan only furthers the losing results.