Cramer's Stop Trading! Save General Motors (11/7/08)

Recap of Jim Cramer’s comments on Stop Trading! Friday November 7.

 

 

General Motors (GM)

Concerning comparisons made between General Motors and Lehman Brothers, Cramer says the country’s largest automaker cannot be allowed to suffer the same fate as the major bank because the whole system is so ‘riddled with GM paper” that the company’s failure would cause a “major meltdown in the US and worldwide trust system. It cannot fail, “said Cramer, “The market would stop.” Cramer says the government needs to make the refinancing of GM its number one priority.

Fluor (FLR)

Fluor is outshining other major infrastructure companies since business is strong and it has a good backlog. Cramer thinks the other companies should just be rolled up and combined with Fluor at the head. “Fluor’s go the mojo,” Cramer said.

More on General Motors:

• Detroit Is  Hemorrhaging by Diane Lim Rogers
• General Motors: Beginning the Endgame by Rick Newman
  

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Comments

[PeteK:]

Cramer,
Why GM but not Lehman ?
What is the bias ? What about my donut shop ?
I need help too.
It's workers loyalty we are talking about.
Tell me who is destroying GM & Ford ?
Don't find excuses either.

2008 Nov 08 07:33 PM

[Vdogg:]

America destroyed GM. When GM, Ford, and Chrysler re-developed their SUV's in the late 80's early 90's, Suburban, Blazer(Tahoe), Bronco(Expedition), Ramcharger(Durango), and their other highly gas consuming vehicles, the American public decided that these were a must-have for nearly 1 in 4 driveways in America. This wasn't The big 3's fault, they mearly marketed them to hold or grab a bit of market share from their counterparts inside of that consumer market. With the sudden surge of sales that these "beasts" created they were forced to shift focus to appease the wants of the American people. The people demanded more SUV's and light Trucks, so the Big 3 made them. Profits were good on these vehicles and customer demand never wained until the gas and economic crisis we have today.

Asian rivals begin to look like the big saviors because they never shifted focus from what they intended to present to the American people. Affordable transportation. That was it!!! Give the Americans quality and affordability, and if they want it they'll buy it. Remember, Asian manufacturers were continentally diversified by the 70's. It was just a different marketing approach for them. They wanted to provide transportation for the world. The Big 3 wanted to satisfy the people that helped invent the car culture, the American people. So who really let who down here? The ones that demand auto's on the flip of a dime, or the ones that try to provide them? In the 70's and 80's America said Asian cars were POS, we want American steel, then said they want bigger, more powerful vehicles, and YOUR Auto manufacturers resituated their ideas to provide you that. And now you tell them to burn in hell, it's all their fault. Nice...

On Nov 08 07:33 PM XeroJ. wrote:

> Cramer,
> Why GM but not Lehman ?
> What is the bias ? What about my donut shop ?
> I need help too.
> It's workers loyalty we are talking about.
> Tell me who is destroying GM & Ford ?
> Don't find excuses either.

2008 Nov 09 02:25 AM

[fg144331:]

No sympathy for US car companies. They have been watching foreign cars get better mileage for years and also watching them be built better for years. Now they are crying, to bad. GM for one KILLED the EV-1 electric, they should bring it back while awaiting their Volt, if it ever arrives. Ford sold it's Foreign 'Think' electric and now it is coming back. These guys are not the smartest, if they can't keep up with trends, to bad! I'm buying foreign &/or electric next time.

2008 Nov 09 10:03 AM

[ebworthen:]

Let GM die already.

If you're going to bail them out - give me a free vehicle of GM's choice, my kid's could use one too since they will be charged the bill for all the bailouts more so than me.

LET THE REALITIES OF LIFE AND THE MARKET HAVE THEIR WAY.

If we don't, much bigger realities will come our way.

2008 Nov 09 11:22 AM

[ebworthen:]

The UAW and other unions killed the U.S. auto industry.

You can't pay $36 an hour and full benefits and a pension to someone using a rivet gun and expect to compete.

The Asian manufacturers moved into the Southern states where there was 1. A better work ethic and 2. Reasonalble taxes and labor rates. The people in the South were willing to do good work at Toyota for $17 and hour versus Wal Mart or Piggly Wiggly for $7 an hour, why not?

The midwest and northeastern states were controlled by tax and spend Liberals and union bosses that demanded unrealistic wages and crippling taxes.

GM didn't move out of Detroit is the problem. GM didn't get lean and mean with their manager and executive pay; they stayed in the cigar smoking, union and politician pleasing past and built inferior products.

Too little, too late.

I'm patriotic, but I'm not spending my hard earned money on someone else's largess.


On Nov 09 02:25 AM Vdogg wrote:

> America destroyed GM. When GM, Ford, and Chrysler re-developed their
> SUV's in the late 80's early 90's, Suburban, Blazer(Tahoe), Bronco(Expedition),
> Ramcharger(Durango), and their other highly gas consuming vehicles,
> the American public decided that these were a must-have for nearly
> 1 in 4 driveways in America. This wasn't The big 3's fault, they
> mearly marketed them to hold or grab a bit of market share from their
> counterparts inside of that consumer market. With the sudden surge
> of sales that these "beasts" created they were forced to shift focus
> to appease the wants of the American people. The people demanded
> more SUV's and light Trucks, so the Big 3 made them. Profits were
> good on these vehicles and customer demand never wained until the
> gas and economic crisis we have today.
>
> Asian rivals begin to look like the big saviors because they never
> shifted focus from what they intended to present to the American
> people. Affordable transportation. That was it!!! Give the Americans
> quality and affordability, and if they want it they'll buy it. Remember,
> Asian manufacturers were continentally diversified by the 70's. It
> was just a different marketing approach for them. They wanted to
> provide transportation for the world. The Big 3 wanted to satisfy
> the people that helped invent the car culture, the American people.
> So who really let who down here? The ones that demand auto's on the
> flip of a dime, or the ones that try to provide them? In the 70's
> and 80's America said Asian cars were POS, we want American steel,
> then said they want bigger, more powerful vehicles, and YOUR Auto
> manufacturers resituated their ideas to provide you that. And now
> you tell them to burn in hell, it's all their fault. Nice...
>
> On Nov 08 07:33 PM XeroJ. wrote:

2008 Nov 09 11:30 AM

[ebworthen:]

Exactly!

What about my mortgage?

How about paying for my exorbidant health insurance premiums?

Hey Congress, why can't I get your fully paid health plan and retirement?

Torches and Pitchforks time!


On Nov 08 07:33 PM XeroJ. wrote:

> Cramer,
> Why GM but not Lehman ?
> What is the bias ? What about my donut shop ?
> I need help too.
> It's workers loyalty we are talking about.
> Tell me who is destroying GM & Ford ?
> Don't find excuses either.

2008 Nov 09 11:32 AM