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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: ItsAllCyclical who wrote (13475)	11/19/2008 1:33:15 PM
From: jim_p	18 Recommendations Read Replies (2) \| Respond to of 51028

Bankruptcy is the only solution for the autos in my opinion. It's the only way they can reduce their costs to be completive. The jobs don't go away when they file and they can do a pre-package that takes away all of the uncertainty on items like auto warranties. When the airlines filed for bankruptcy they maintained their frequent flyer programs and the auto markets can maintain their warranties. They need to be more than completive than foreign car makers because they make an inferior product and it would need to be a lot cheaper before they can maintain market share and be completive. $25 billion is a very small fraction of what they need to solve their problems and the money would be waited unless they could change their compensation for current and former employees. They are not going to maintain plants open and keep buying parts from vendors if they can’t sell cars with or without a bailout. What they need is for the economy to recover and that isn’t going to happen any time soon. I agree with Slider that the markets will tank if they don't get a bailout, but I'm opposed to it and I don't believe it will pass with this lame duck congress/president. The markets are not showing any signs of a bottom anyway. This market reminds me of the 70's when valuation/fundaments made no difference, the market just grinds lower and lower day after day. I remember quality stocks selling for PE's of 3 and 4 back then year after year. The de-leverage process is still ongoing. JQ Public is more interested in survival/jobs than trying to find a bottom in the stock market. The VIX is still very high The BKX still hitting new lows day after day. The only positive sign I've seen is the Ted spread coming down to 2.07, but it's still too high to get optimistic. Jim

To: ItsAllCyclical who wrote (13475)	11/21/2008 11:55:08 PM
From: Cogito Ergo Sum	Respond to of 51028

Yeah sounds right.. Look at what's going on up in my neck of the woods... Canadian car dealers plead for help Richard Brennan Toronto Star Nov 21, 2008 OTTAWA-Canadian auto dealers say even though they are looking at one of their best years for sales, the banks are increasingly refusing to lend them money to buy vehicles for their showrooms. "We are seeing the financing that dealers receive dry up," Hugh Williams, director of public affairs for the Canadian Automobile Dealers Association, told a press conference today. The CADA is calling on the federal government, which has put up billions of dollars to ease the banks' credit crunch, to ensure that financing is made available to the 3,500 auto dealers. Williams said it is hard to understand why banks have suddenly changed their tune on lending money to the 3,500 dealers when the industry is on track to sell more than 1.6 million vehicles this years. Williams said the "phone has been ringing off the hook" for several weeks now with calls from dealers complaining that bank financing is drying up. "There is an anomaly in the Canadian marketplace that we're tracking to have one of the second or third best years in history on a retail basis ... (and yet) dealers are getting into trouble with respect to not being able to get ... financing," he said. CADA president and CEO Richard Gauthier said the Canadian public and policy makers must understand that the auto industry is the engine of the entire country's economy. He said automotive dealers employ about 140,000 people across the country and are represented in almost every community in Canada. "Predictable and accessible credit is the oil in the auto industry's engine. Any effort by government to support the banking sector must be accompanied by a strong message to the banks that they must continue to support small, sound business," he said. Gauthier said the dealers' credit crunch, which he emphasized has not hit Canadian consumers, is compounded by the fact the automotive manufacturers also can't tap into financing like they used to to help out the dealers. He said Ottawa must understand that dealership are not company stores, but independent businesses. "Dealers do no take vehicles or parts on consignment from their manufacturers. Dealers assume the risk of financing inventory," he said. Gauthier said noted that it's "very good time" to buy a car, adding: "Cars have not been this affordable in a generation." wheels.ca ======================================== BTW re: your DZZ guess of the JP thread ... I'd guess you are correct.. plus he mentioned HGD(TSX) upthread.. that is the Canuck equivalent.. The Black Swan