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 : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: maceng2 who wrote (23538)	10/16/2009 3:58:58 PM
From: robert b furman	8 Recommendations Read Replies (2) \| Respond to of 71409

Hi Enplus. Thanks. Deming was sorely missed by the domestics. That is not to say he was not studied. I personally know a UAW employee (now retired) who went to study under Deming.He was the highest paid UAW employee in GM. He loaned me his books written by Deming. He was a very proud GM employee and could bridge the sometimes huge gaps between the union/grievance bureaucracy and management. These were long term lessons learned and it has already been a work in progress for many years. Those who believe that GM quality is below that of Japanese automakers just have not studied short or long term quality surveys. The currency issue will not make a quick recovery - just as it was a long time in the making, the reversal must also be a long time, for it to allow long term content advantages. With quality being an equal,image/perception will require time. If the currency exchange rate is allowed to be at favor to the dollar(like it is now) the big time losers will be those dealers who paid horrendous blue sky for Toyota franchises over the last 5-7 years. The blue sky paid will never be recovered if the market stays in the 10-12 million saar. Given equal quality and 5 to 10% FX exchange advantage,Domestics will add content to their new models and regain market share as content advantages are discovered by saavy buyers. For those who know more about the car business.I'd love to hear from them. That is if their knowledge extends beyond sarcasm and uncivil posts. Thank You for your kind post. To all on this thread pardon my often mispelled posts. I often post from a treo while at used car auctions (I purchase 300-400 used vehicles every year). My sentence structure and spelling is often less than I would like, as I have 4 dealerships and over 150 employees,3 partners,and as just now - appraised a $30,000 GMC Denali. Often will my nettiquette be interrupted by the need for my attention elsewhere. If you find it offensive - I apologize in advance, and ask that you simply put me in ignore.

To: maceng2 who wrote (23538)	10/16/2009 5:30:41 PM
From: Real Man	Read Replies (2) \| Respond to of 71409

Depends. If your costs go up more than your products, you are screwed even as the currency melts down. That's exactly what happened to GM and our other manufacturers since 2000. Soaring oil price, a number of wrong decisions, then a credit crisis bankrupted them. Primarily the cause of the bankruptcy was ... focussing on running a BANK ARM (GMAC) as opposed to a MANUFACTURING FACILITY. That bank arm generated all GM's profits, while manufacturing generated losses, since that stuff was encouraged by the fed. GE did the same, and so did other large co-s. Why? Cause. The government (The Fed, mostly) made running manufacturing biz unprofitable, so everyone was forced to adapt. Judging by record WS bonuses and the policies of last year, the Fed is doing it again. This time the manufacturing will be wiped out (a continuation of the long term trend of wrong policy making, really), and a currency with no real economy to support it is worth no more than a sign on it, $=0.