Economy Economic Crisis 2008

[segua]

Interesting that the Auto Industry in the U.S. is getting a portion of the financial aid package that was passed a few months ago. I wonder who else is inline to try to receive a part of that allocation of money.

Also, I doubt the money will be put to good use. With all the negative reports that are coming out and the coming corruption, it's not worth the trouble to spend all this money on those troubled companies.

 

[redcometfm]

I really hope we Interest Rate the shit out of those companies just so they feel that pressure to improve. Then again if they dont restructure and improve theyre going to go down anyway.

 

[segua]

One thing I really hope that won't happen is a rapid increase of cost on commodities. Anyway, it's not like the people will prosper anyway. It's not a win-win situation for the people. It is a win-win for those people at the top. They will benefit because it's money that they are giving out and it's also money that they are getting back.

Money-laundering at the highest levels in my opinion and it seems legit.

 

[thsv]

The funny thing is that the way Fox News went on about the failure of the original bailout bill you'd have thought the sky was about to fall in on us.

And yet...

The banks have gotten the money and are starting to tighten up. Even if it means screwing over good customers before they can become defaulters.

 

[diamondcut]

Why would the good customers be defaulters?

 

[thsv]

Why would the good customers be defaulters?

become - as in at some point in the future

I'm talking about small businesses that service the larger businesses that maybe running into trouble. A lot of them depend on overdraft facilities whilst waiting to get paid. If they haven't got these facilities they need to pursue their money more aggressively. And that leads to all sorts of problems.

Great time to be a baliff though.....

 

[candy rain]

it has influnced all of the world and lead to bad results,including our country

 

[johnswhite]

Hi all...

The collapse of the auto industry during the past several years became headline news again last week. General Motors received court approval for its restructuring program and was able to sell enough valuable assets to emerge from bankruptcy. Despite what may appear to be a positive moment for this vital U.S. industry, American automakers are still in dire straights.

This is easily shown by a quick comparison of global industry leaders. According to the Global 500, produced by Fortune, American titans General Motors and Ford rank 18th and 19th globally and 3rd and 4th in the auto industry in terms of respective size. These two companies hold revenue of almost $300 billion. Unfortunately, in 2008 alone they lost $44 billion in combined profits.

Volkswagon, Daimler, Fiat, Peugot, and BMW are the largest automakers in Europe. These companies held roughly $550 billion in revenue as of 2009. As a larger conglomerate they should be more susceptible to the same global slowdown that destroyed American carmakers. Yet, instead of showing losses, these companies combined for over $7 billion in profit.

The same was seen in Asia where Toyota, Honda, Nissan, and Hyundai – a $450 billion group – were able to find stability in the storm. Despite being heavily reliant on the tanking American car market these companies lost only $4.5 billion in 2009.

 

[thsv]

I hate to be critical of American car makers but the difference between them and the Europeans and Asians is that Europe and Asia moved with the times and produced vehicles that people wanted to buy. I remember a Republican Senator asking about the right to drive a gas guzzler. It might be ok for the US market but the trick to being profitable in the auto industry is being able to export. Hence why Nissan and Toyota have been so successful.

 

[Kaiten]

Gas guzzlers are not okay for our market, not anymore. A gallon of gas averaged over $4.00 last summer, astronomically high by American standards. This spooked everyone who owns an SUV or considered buying one. With that sales slumped, when the economy collapsed last September there was no hope for recovery. GM, Chrysler, and to a lesser extent Ford had staked their future to the gas guzzlers, little attempt was made to break into the hybrid/diesel/fuel cell market, despite the massive popularity of the Prius. Should GM or Ford really move into that market, and only then, they will recover. If they don't they will linger for a bit longer then die.

 

[JC123]

There's truth to that but that doesn't explain everything about what happened to the Big Three.

For GM, at least, they had their market in SUVs as well as trucks. Ford has the F-150 as their best selling truck. They would do rather well.

The problem came from union deals and having to pay for factories that closed as well as workers who were laid off. The reason for the bankruptcy is for them to remain solvent while they renegotiate who works with them as well as who gets paid what.

That's why places such as Michigan and Detroit have over 10% jobless rate right now.