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Automotive News & Views Do You Favor A Government Loan To The Detroit 3?
3958 messages, Last post on Oct 02, 2009 at 4:52 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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Replying to: steve_ (Nov 23, 2008 7:34 pm) The Lexus stuff was always in Toyota. They started "decontenting" (another word for cheapening), Toyota and made us believe Lexus was higher quality. Look back at the Toyota Cressida, that was the precursor of Lexus imho.
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Replying to: gagrice (Nov 23, 2008 9:20 pm) Too much violence and too many stupid reality TV shows and infomercials. As for the news media, how many stations do we need repeating the same news at the same time? Maybe the market can no longer sustain so many TV networks and local stations. Yes.... lets blame that on GM and the banking industry too. 
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Replying to: gagrice (Nov 23, 2008 9:42 pm) I went to the Michigan State Fair long ago while visiting in Detroit while working in Michigan. A grad school acquaintance worked for Ford during the summer and he showed me around the town. It's amazing what incompetent management and city leaders can do for a town while expecting handouts from others and giving themselves the benefits through the decades. The recent mayor got caught. Who's the mayor now? Do they have city leaders willing to make residents behave? Or is it more of the same lifestyle? |
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Replying to: steve_ (Nov 23, 2008 7:34 pm) 1) Because Citi has about 3,000 Billion $ in assets and liabilities; that would be very bad for trillions of other $ of investments if they fail. Citi's commitments are far beyond the entire wealth of EVERY auto maker put together. 2) Citi typically makes money each year, whereas the Big3 typically don't; and with the Big3's market share continuing to decline each year, it is unlikely they will ever make $ again - even with a bailout. Citi will make $ to repay the loan, the Big3 have a snowball in hell's chance.
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Replying to: kernick (Nov 24, 2008 5:13 am) And they are highly over leveraged. Just like the over leveraging of mortgage packages, borrowing against them multiply times their pittance of value, Citi is probably all paper, just like the oil price boom was which the government DIDN'T control. I'm in favor of keeping jobs rather than helping Citi avoid being exposed as a fraudulent paper factory. The problem is the congress and others were instrumental in helping set up this paper factory economy, and they are happy to use our money to help cover the paper so that eventually congress and friends won't be exposed as the culprits of the worthless paper mill leading to the depression.
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Replying to: tired_old_dave (Nov 22, 2008 11:39 am)
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From the Philadelphia newspaper: Alternative Worse |
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Replying to: lemko (Nov 24, 2008 6:39 am) And how would you know that? 
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just like the monty python joke-my dog has no nose. How does he smell. Awful. Old accounting joke: Three accounting applicants interviewing for a position. First applicant is asked how much is one plus one? The response is two. Next applicant please. The next applicant is asked how much is one plus one? The response is two. Next applicant please. The last applicant is asked how much is one plus one. The response is how much do you want it to be. You're hired. |
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Replying to: imidazol97 (Nov 24, 2008 5:21 am) I do agree with you that DC and Wall Street have stuck it to everyone. However we can't change the past. I do see where the government needs to fix some of the problems they created (analogy might be a DUI driver stopping to help the person they just ran off the road). Well I think the problem is that just like your house could be $300K, or if no one wants it - purely psychological - they may value it at $150K at auction. Well this is the problem with banks, meaning that the value of what Citi is holding is in question. I believe what the government is trying to do in the financial sector is to firm up that Citi's assets are worth $3T, or close to it. For if Citi's assets collapse in value, then every similar type of asset also goes down. It's a domino effect on the value of EVERYTHING, everywhere. That was the same reasoning with AIG. A manufacturer of autos however does not drag down the value of everything. If automaker A goes out of business Automakers B, C, and D can hire and produce more. There is no net loss. 12M autos will be built and sold whether it is A,B,C,D, and E selling them or just B,C,D,E, and a new F (using some of A's people and equipment). There is plenty of excess capacity in Ford, Chrysler, and all the import factories to makeup for any closure of GM. The auto suppliers also are slow and could easily produce more parts for the remaining companies. |
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