Who can possibly make an argument that the “big three” are anything but the Terri Schiavo of the United States public markets? They have been on life support so long and at such cost as to defy reason, other than the sentimental hand wringing that looks fondly back three decades, or has some religious hangup preventing responsible parties from just pulling the damn plug already. Why not just overfund the pension plans with government money, send all of the workers home and close shop? In the end, it might be cheaper.
We suppose that it merely highlights the miasma that is the domestic automotive industry when the likes of Kirk Kerkorian get sucked into failed billion dollar experiments designed to revive the industry.
Friday will see General Motors open the kimono, likely followed by panicked shrieks of “Shrinkage! Shrinkage! There was shrinkage!” by management. A gentle pat on the back from Mom Pelosi (“There there, you have plenty of growing to do yet.”) along with a second handout for $25 billion (oh, wait, sorry, a $25 billion ‘bridge loan’) would go a long way to reassuring the balding firms for another few months. But the trouble won’t stop there.
Last week we were forced to endure the domestic air travel and car rental facilities at several major airports. To our total lack of surprise, SUVs were suddenly the bargain basement rental deal at the counter. A sure sign of inventory dumping. And when even the rental companies can’t stomach any more bloated family of twelve transporters? Punt.
Perhaps you will forgive us for snickering at articles that wonder aloud if the firms will even survive long enough to see the savior of all things economic take the oath of office. We don’t care who you are. That there’s funny. CNBC using 400 words to point out that GM needs cash? Not so much. Where were you when Kirk was dumping his hard earned cashed on the fire?
I think this is our favorite quote, courtsey of Senator Debbie Stabenow (D-MI):
“President-elect Obama understands you can’t have an economy that doesn’t make things.”
Scintillating analysis.
Auto Industry to Obama: Save Us Before Even Taking Office [U.S. News And World Report]
GM: Cash Is More Than “King” For Survival [CNBC]
Auto reports hint government help is critical to survival [The Detroit Free Press]
@Bess
“Tags: Clusterfucks, Ford, GM, That Other One ”
Nice touch.
@1, That’s PE, jackass.
The Senator’s “analysis” is about as scintillating as yours but at least she’s concise.
You just wrote 5 paragraphs of going nowhere.
@2, don’t you mean EP
5 paragraphs and no mention of Detroit’s mayor? I don’t care if he isn’t involved, he deserves a mention.
Isn’t Stabenow the one whose husband got caught with a prostie at a motel?
http://www.detnews.com/apps/pbcs.dll/article?AID=/20080403/METRO/804030355/1409/METRO
At least someone is “producing”, uh, something.
i dont get the point of this post
@3 stop hating. Just ’cause your wife’s mad you’re not getting a bonus and fucks her fitness trainer every monday, wednesday and friday is no reason to take it out on ep.
@3 wow, getting pissed on at work again, huh buddy? associate tell you your slides look like shit?
thanks, ep. good shit.
This is socialism!!! Adam Smith would be rolling over in his grave. Karl Marx would prob be doing a two step.
- Large Financial Institution
When she refers to making “things,” is that code for wooden arrows used by children?
GM and Chrysler should both declare Chapter 11 BK…It’ll make things easier.
@12
Why don’t we just bring the debt number back to Zero and start all over?
Tyler Durden
@13: have you ever seen the Big 3′s financials? Problem is nothing to do with debt – it is their pension and healthcare liabilities that cost them $1500 or so a car. They’ve got multiple pensioners for each current employee. Inverse Triangle, doesn’t balance.
I had to go to Detroit on business (blah blah…yes, I work for the mafia…blah blah), and the daily price of a Prius was somewhere around ~$54. Of course, this was at the beginning of October, but yeah… A Dodge Ram was ~$13/day (if I remember correctly). “Punt” is right.
@14
First rule of fight club is that you don’t talk about fight club.
@14 first rule of fight club is ya don’t talk about fight club…
second rule of fight club is you don’t talk about fight club.
Third rule of fight club is……
Well you get the point.
The sad thing is that a bailout today for $25 billion is probably cheaper than the US assuming the health care costs of GM’s army of pensioners.
8 & 9 = gay little fan bois.
Go suck each other off or do something otherwise productive.
Leave the criticism to the BSDs.
No TL:DR?
Booo
Speaking of lost causes, all you laid-off DB posters who are now experiencing grim prospects for future Wall St jobs (especially you younger ones)should really consider taking TGFD’s advice:
Take your money, your belongings, your car? your furniture, etc. and leave the entire NYC area. Bail the f’k out, period.
Why? Save your money that you have. Don’t piss it away in an expensive place like NYC when you know what your prospects are. What will you do when your money runs out, you have no job, and you’re still in NYC?
No, don’t come to Delaware either. I’m not suggesting that. Go back to wherever you came from, or go to another town. Use headhunters to help you with jobs somewhere else. You must have developed some kind of business/finance skills.
I cannot envision things getting better anytime soon on Wall St. If you have money, save it, and live somewhere else.
It is possible that you may never again get a job making the kind of money you’ve been accustomed to. So don’t squander what you’ve accumulated while hanging on to a lost cause. Cut you f’n losses.
The Guy from Delaware
Guy from Delaware, first post in this site for many months that makes sense!!
I really like the Terry Sciavo analogy with the big three. At the end of the day, they pulled the plug and 3 days later everyone went on with their business, including the ranting politicians and the people standing outside with signs.
What a joke, nice column you pinko fucking Wall Street pukes!
Fuck all of you and your lying, greedy, fake careers. Why don’t you find someone else to pick on, Detroit and the people that actually work and produce something in this country can take and have already taken allot more than this bullshit column can dish out.
Try and pick on me, just try…
What a joke, nice column you pinko fucking Wall Street pukes!
Fuck all of you and your lying, greedy, fake careers. Why don’t you find someone else to pick on, Detroit and the people that actually work and produce something in this country can take and have already taken allot more than this bullshit column can dish out.
Try and pick on me, just try…
@18, at some point the costs should go down as the pensioners die off; won’t happen soon enough though