As GM goes so goes the country

O

orbital 123

Veteran XX
GG American. Once the three major auto makers go bankrupt that means over 3 million jobs lost. So they will be propped up by the US government, which will print more money to fund the bailouts, which will increase inflation, which will drive prices up even more.

MarketBeat : Deutsche Bank: GM Is Worth Nothing.

Deutsche Bank said publicly today what many detractors of General Motors Inc. have been thinking for some time — the company is worthless.

In a note, Rod Lache of Deutsche reduced his rating on the shares to sell (helpful) and put a price target of $0 on the automaker, saying the company has few options at this point beyond “external government intervention.”

They believe the company does not have the cash to fund its operations past December, though Mr. Lache believes the government will be “compelled to participate” in some kind of loan package for the company, for without it, “it would precipitate systemic risk that would be difficult to overcome for automakers, suppliers, retailers and sectors of the U.S. economy.”
Click to expand...
 
GM, Ford report huge losses, worries about survival loom - USATODAY.com

General Motors and Ford on Friday reported huge third-quarter losses and said they burned through cash at a furious rate.
Before the market opened, Ford Motor said it lost $129 million in the third quarter and burned up $7.7 billion in cash. Later, GM said it lost $2.5 billion and had $6.9 billion in negative cash flow and could run out of cash early in 2009.
~`
~~
The numbers show the traditional American auto industry is near collapse — so close that industry and labor chiefs have been pleading for a federal bailout to survive. Detroit auto executives and the head of the United Auto Workers union met Thursday with House Speaker Nancy Pelosi, D-Calif., and Senate Majority Leader Harry Reid, D-Nev., to ask for broader access to low-interest federal loans.
~~
~~
New vehicle sales have tumbled to a level that, adjusted for population growth, hasn't been this low since just after World War II, an "unsustainably weak level," says Mike DiGiovanni, GM's executive director of global market and industry analysis.

Without significant revenue — never mind profits — from new vehicle sales, Detroit's cash on hand soon may dwindle to where automakers have too little to keep up day-to-day operations. GM, for example, needs some $14 billion in the bank at any point just to keep the doors open — make payroll, pay for supplies, put aside money for retirees.
<more>
Click to expand...
 
imgad
 
This is the opportunity cost of having Bush in the White House. We should have 100mbit to the desktop and Google should be our largest employer. Welcome to the new century.

Anyway, now is the obvious time to buy.
 
obviously there is absolutely no companies that can replace them nor can those workers focus on other parts of the economy. That's three million jobs PERMANENTLY LOST
 
it is more than just the jobs at the automakers. t is all the suppliers who have built their industry around the auto companies. If they do go down. yes we are fucked They will get billions though.
 
the government isnt going to bail out an auto industry
cause then where does it stop? airlines, starbucks, you name it

they can pass off the AIG thing as an international concern because they had major influence all over the world

if GM shuts down it's really only going to affect America
and no one cares about Canada
 
Kizzak said:
obviously there is absolutely no companies that can replace them nor can those workers focus on other parts of the economy. That's three million jobs PERMANENTLY LOST
Click to expand...

Nevermore..

Only shit part of it would be not seeing the Chevy Volt. One can only hope however that some company that will produce and not a patent troll ends up with GMs patent portfolio.
 
You must log in or register to reply here.
Back
Top