WarrenJ Posted May 12, 2009 Report Share Posted May 12, 2009 "Chrysler LLC has already been forced into Chapter 11 bankruptcy and - armed with $11 billion in government aide - is being reorganized by the Obama administration with help from Italy’s Fiat SpA (OTC ADR: FIATY). "General Motors Corp. (NYSE: GM) is inching towards a similar fate as it struggles to turn its business around with $27 billion in government aid." "For investors, there is only one moral to this sorry tale: Of Detroit’s so-called “Big Three,” the only one worth looking at is Ford Motor Co. (NYSE: F)." "Nevertheless, GM is losing money at a frightening speed. The company lost only $6 billion in the first quarter of 2009 (sounds like a lot, but the company has lost an aggregate $88 billion since 2006), but it managed to burn through $10.2 billion of cash. To burn through $4 billion of cash above your book loss - in a quarter when sales were exceptionally low - suggests that demand for your products has fallen off a cliff, and that you are producing purely for inventory." As an aside, a noted economist recently observed, "The U.S. economy is no longer heading off a cliff; rather, it is generally heading swiftly downhill." I'd argue that point, but I'm still deeply worried. "When Ford refused to take government aid back in December, it looked an eccentric decision. Everyone knew Ford was losing billions, too, and the fact that it had raised huge amounts of debt in 2006 to give itself a fighting fund only seemed likely to delay the inevitable bankruptcy or federal cash infusion. Five months later, after the conditions attached to the GM and Chrysler cash injections have become clear, Ford’s decision is much more comprehensible - and perhaps even shrewd." The above is largely from a copyrighted subscription media. I can't publish its source. Still, it stinks. Regards, Warren There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. - Ludwig von Mises Link to comment Share on other sites More sharing options...
Marika Posted May 12, 2009 Report Share Posted May 12, 2009 Knowing as many English folk as I do, I can tell you with absolute certainty that they LOVE Ford in England. In fact, the Queen has a Ford Pinto in her massive collection of cars and apparently, she loves the humble yet highly explosive bugger...LOL!! Even police cars and other emergency vehicles are Ford. I have no idea WHY they love Ford, I only know that they consider it a top notch car company and an excellent manufacturer. Contractors love the Ford Van which comes in millions of different models to suit everyone's needs. I suspect Ford is doing very well selling cars in England and in the EU and this might be one of the reasons why they still have their nose above the waterline. If you really want to make people safe drivers again then simply remove all the safety features from cars. No more seat belts, ABS brakes, traction control, air bags or stability control. No more anything. You'll see how quickly people will slow down and once again learn to drive like "normal" humans. Link to comment Share on other sites More sharing options...
WarrenJ Posted May 12, 2009 Author Report Share Posted May 12, 2009 In fact, the Queen has a Ford Pinto in her massive collection of cars and apparently, she loves the humble yet highly explosive bugger...LOL!! Words fail me! I cannot even begin to tell you of the joy I find in the thought of the Queen having a bugger in her carport! Regards, Warren P.S. I deleted the part where I said, "Up Ireland." There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. - Ludwig von Mises Link to comment Share on other sites More sharing options...
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