Discussion in 'Trading' started by PocketChange, Oct 12, 2008.
How can GM possibly survive and avoid insolvency/bankruptcy?
It can merge with Chrysler and then Chrysler can go bankrupt. Two birds with one stone.
1) Hire back the U.S. workforce they laid off over the last 10 years or so to build the cars.
2) Start selling a lot of cars right away.
Interesting point... when you outsource your middle class... not much left to keep wheels turning.
they cant...detroit car makers just got a 25$ billion bailout 2 weeks ago and they still cant get shit together.Chrysler is owned by a hedge fund and they got 8bil of taxpayer money.What a farce.Crap product and crappier executives.Let the freemarket take care of them.
GM can move south to KY,TN or TX. Where there is a booming car industry.
I know this guy who is a problem solver at GM. When Wagner suggests a 20 % cut in work force and everyone will have to do 20% more work, do you think you can solve 20% more problems?
With 20% fewer workers, do you have 20% fewer problems?
Don't think so....TN has (downsized) Saturn (Spring Hill), KY has Ford and Toyota, both downsized - TX has GM (Arlington) and Toyota (San Antonio) for now.
They just keep shrinking.........brainiacs in charge still sending work over seas.
You'd think the college degreed educated idiots in charge would've figured it out - BEFORE they ran the company into the ground - - - - too late now ~ JMHO
I've been reading quite a few of your posts in P & R lately and I find I'm in disagreement with a lot of the things you have to say.
With regard to GM, was this meant to be a joke or is it serious? You believe that GM can overcome their secular problems by moving to Kentucky and selling cars to citizens in these 3 states? What makes you think that GM isn't already selling cars in these states??
Can you show some numbers which would tend to back up this incredible statement? Do you understand how much debt they're carrying? Do you understand what their pension liabilities are? Do you understand that Bob Lutz has made one final bet on the hybrid that they're trying to sell? Do you understand that they have tried through 4 different product cycles to come up with cars that have mass appeal? You think moving to Kentucky will fix all this? Aren't Kentuckians who would tend to want to support GM already buying GM products?
The only hope - I mean the only hope for this company, is a massive government bailout, one which would be the largest in US history. As a good right-winger and free-market advocate, would you be for it?
A friend of mine bought $80,000 worth of GM stock at $19. Obviously he's an armchair dabbler. After getting pummelled on Thursday, he asked me if he should sell. I can't trade my way out of a paper bag yet, advice from me is the kiss of death, but I feel badly for him.
So obviously he should sell, but should he hold on for more of a bounce? $9 too ambitious? Or set a trailing stop loss at 10%? Would appreciate your help.
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