Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: maxncompany who wrote (83720)	8/23/2008 8:24:47 PM
From: petekoby	Read Replies (1) \| Respond to of 116555

The management question is very complicated. Outside of US Ford and GM are making right cars are #1 and #2 in most of the markets they compete. In US it is chicken and eggs story. Bad union contracts, which they are out starting 2009, medical liability and pension coverage, out and outsourced to union to manage at roughly 60c on the dollar, they have chance to really pull it. Ford new president is visionary and global platform car is fantastic idea to make the good cars at competitive price (price value proposition). I think they will pull it and will be able to make small cars economically, but they need time and money, which GM is short, and Ford has enough liquidity to burn through mid 2010. But both GM and F are changing companies and very viable, look how much money they make abroad. Should government help them? I look at this like investment. In peak of the cycle GM and Ford can pay 5-10 billions in taxes, and amount of taxes which working people pay with jobs from these companies is double to triple. So in my mind it is tremendous investment for US treasury.