Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Alighieri who wrote (562126)	4/21/2010 11:27:41 AM
From: i-node	Read Replies (4) of 1578120

>> What will you say when they show a profit? My response here will undoubtedly be over your head. However, I'll do it anyway. GM may well become profitable again. But any such developed is certain to be short-lived, as they have the massive overhead of unions which will prevent them from competing in world markets. The fact is that a company with higher labor costs is always going to be at a substantial disadvantage in a global market. A return to profitability on a temporary basis is not unexpected; after all, a reasonably forecastable return to profitability is a precondition for emergence from Chapter 11. Remember, however, that this corrupt bankruptcy process had GM come out of Chapter 11 with a mere 2B in LTD and with all previous shareholder equity eradicated -- an outcome that would NOT have happened under a normal bankruptcy process. Given the advantages the company was handed by a government's designation of GM being too big to fail, a return to profitability is the very least one can expect. But it doesn't help America that one of our two automakers is on government life support and likely will remain so for an extended period of time, if not forever.

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