General Motors Is Headed For Bankruptcy -- Again

Discussion in 'Business & Economics' started by Michael, Oct 4, 2012.

  1. Michael 歌舞伎 Valued Senior Member

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    General Motors Is Headed For Bankruptcy -- Again

    Fascism didn't work when the Germans tried it, nor when the Japanese tried it, and it isn't working when we try it.

    BUT, get this, I have a revolutionary idea, how about we try *gasp* Capitalism?!?!
    You know, the economic model that made our nation rich and prosperous? Let GM go bust. Stop stealing money from one segment of the society (example: Citizens who work at Ford) and using their labor to prop up GM where labor is poor and products even poorer. I know a bit about GM. Almost everyone in my family worked for GM. Many are on pretty sweet benefits packages - untenable packages. I remember when the goal for spark plugs (I worked awhile as a chemical intern - great money, too much in fact) was to get the ppm down to 800. Toyota OTOH had a ppm defect that was 13.

    The solution? Buy from Toyota for luxury GM cars and put the overpriced crap GM made stuff in the cheaper cars. It should be noted GM Executives are PISSED off because they're not allowed to give themselves multimillion dollar bonuses. Yeah, right now, as the company sinks under. Why don't they give two shits you ask? Because they know daddy Bernanke will come up with the cash when push comes to shove. Just like ALL public service crap. The closer you get in bed with government - the worse crap-o-la you end up with.

    You wanted Fascism in the USA - now you got it. Watch as we go from broke to dead-broke as a nation.
    GM, just like most of America, can't compete in manufacturing**
    Look at the state of Public "Education". What a joke.
    Watch as innovation in Healthcare goes right into the toilet along with it being cheap. It'll soon be over priced crap.


    I hope the picture is becoming a tiny bit clearer. But, don't worry, it will. As time goes by and thing go from crap to shit in the USSA the idea the 'Government' is there to 'Help' the people will become much clearer.


    **Note: A recent study suggests part of the problem is because of the Pentagon, which has made making money so easy in the USA off their sweet contracts that easily blow out 4 or 5 times the amount for half the quality that our manufacturing industry simply stopped innovating and is now lagging behind the other major manufacturers.
    USSA... home of the 'free'... ha! Suck it.
     
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  3. elte Valued Senior Member

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    Seems that many, or maybe even most, people are poor consumers because product decisions involve too many variables. I'm not sure that is why GM has had trouble, but I can't see it helping in the long run. It seems why, even though it is general knowledge that fossil fuels are getting used up, there are more big SUVs on the road than ever, from what I see.
     
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  5. Read-Only Valued Senior Member

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  7. Michael 歌舞伎 Valued Senior Member

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    We will see.

    The last I read Federal and State lease agreements make up 30% of GM's rental business.... and that's actually where they make a lot of their business. As the government runs out of free easy money to tap, companies like GM will be forced to work for a living. Of course, most of the market growth is in Asia, so, it's also up to how well the Chinese economy does in the near future. I know when I worked at GM - they sucked. The worker's attitude sucked. Half were high on the job. Almost every week I could smell someone who had just gotten high.

    Anyway, we'll see.
     
  8. Read-Only Valued Senior Member

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    Yes indeed - we SHALL see. And since you placed your faith in that one *known* jerk commentator, it might be wise for you to start considering what sauce you want to use on the dish of crow you may have coming.

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  9. Michael 歌舞伎 Valued Senior Member

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    I'll happily eat crow.

    Can GM fix all the structural problems it has? Maybe, but I don't think so. They're only hope is China, and China's economy is slowing down, they have way too many cars and not enough space (they're already regulating who can buy a car).



    So, down I plant my flag - GM will go bankrupt.
     
  10. Read-Only Valued Senior Member

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    Got a way with the wrong words too, I see. That's "Their only hope..." not "They're only hope..." But that's a false flag also - as you will see in the next few years.

    P.S. I just bought another 18,000 shares of GM. Unlike you, probably, I put my money where my mouth is.
     
  11. Buddha12 Valued Senior Member

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    Well according to this chart GM is not heading up but only downward over the past 2 years.

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  12. Read-Only Valued Senior Member

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    Yes, that's correct. However, I'm in it for the long haul - I never buy anything unless I'm prepared to hold it for at least 10 years. Call me ultra-conservative if you wish, but it's only failed me twice in 50 years.

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    Also, as a hedge, I bought an additional 5,000 shares right on the button in Oct. (almost luck but not entirely.) So at the moment I'm *still* ahead of the game.
     
  13. Buddha12 Valued Senior Member

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    So you will be there when the government once again steps in to bail them out with more tax payers money. It is rather nice to know your banking on the Federal Government money rather than GM actually making profits that they actually earn instead of billion dollar bailouts.
     
  14. R1D2 many leagues under the sea. Valued Senior Member

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    GM made a mistake. Obama made a mistake. Bail outs may work IF you have strict regulation upon receiving the money. GM should have followed Fords example. They didn't and now I feel GM is going to crash.
    Question are they recycling all the parts from past cars that make it to a junk yard?
     
  15. Read-Only Valued Senior Member

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    Not at all !! Did you bother to read the link I provided? I seriously believe GM is going to move ahead on it's own.
     
  16. Read-Only Valued Senior Member

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    Looks like you didn't read my link either, did you?
     
  17. Buddha12 Valued Senior Member

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  18. Read-Only Valued Senior Member

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    No problem.

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    Everyone is entitled to draw their own conclusion.
     
  19. billvon Valued Senior Member

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    Pure capitalism works as well as pure communism, pure socialism, pure totalitarianism, indeed any pure -ism. That is, it doesn't. We saw what happened with Standard Oil, the Triangle Shirtwaist Company, the plants in Donora, PA etc.

    As for the fascism label I'll let George Orwell answer that:

    =================
    Of all the unanswered questions of our time, perhaps the most important is: ‘What is Fascism?’

    One of the social survey organizations in America recently asked this question of a hundred different people, and got answers ranging from ‘pure democracy’ to ‘pure diabolism’. In this country if you ask the average thinking person to define Fascism, he usually answers by pointing to the German and Italian régimes. But this is very unsatisfactory, because even the major Fascist states differ from one another a good deal in structure and ideology.

    . . .

    It will be seen that, as used, the word ‘Fascism’ is almost entirely meaningless. In conversation, of course, it is used even more wildly than in print. I have heard it applied to farmers, shopkeepers, Social Credit, corporal punishment, fox-hunting, bull-fighting, the 1922 Committee, the 1941 Committee, Kipling, Gandhi, Chiang Kai-Shek, homosexuality, Priestley's broadcasts, Youth Hostels, astrology, women, dogs and I do not know what else. . . . All one can do for the moment is to use the word with a certain amount of circumspection and not, as is usually done, degrade it to the level of a swearword.
    ================
     
  20. joepistole Deacon Blues Valued Senior Member

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    It's not GM, it is the auto industry. The auto industry has been facing some headwinds from Europe. Europe's delays in getting it's financial house in order has caused demand problems in Europe. Sales in the United States are up. Ford stock, has performed much worse than GM over this period. But here are the facts, GM sales are up. GM cash flows, the money it uses to pay it's bills, is up. And the company has remained profitable since it was spun out of bankruptcy.
     
    Last edited: Oct 5, 2012
  21. joepistole Deacon Blues Valued Senior Member

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    Then how do you explain GM performing better than Ford?
     
  22. joepistole Deacon Blues Valued Senior Member

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    Then how do you explain GM performing better than Ford? And how do you explain the fact that Standard and Poor’s has a buy rating on GM? And how do you explain Standard and Poor's bullish sales forecasts for GM?
     
  23. joepistole Deacon Blues Valued Senior Member

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    And just what structural problems do you see exactly? Obviously, Standard and Poor's doesn't see those "structural problems" since they have a buy rating on the stock and have forecasted increased demand and profits next year.
     

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