brianoh

Saab May Be GM's Best Hope for the Future

Very interesting that GM et al had no business plan for recovery. Trouble is, we live in changing times – “which way is the consumer heading?”. They run the risk of ditching the old model based on “yank tanks”, only to see it revived again. The structural problems are so great that it almost looks worthwhile to go chapter 7 and disappear. The old business model is unworkable in the present market – hourly rates, pensions, healthcare, products. On the other hand, the politicians will not want to see these status symbols of capitalism prove to be a failed concept. How these problems came to be is difficult to comprehend. However, the US (Treasury, Congress, Fed Reserve) appear to have abandoned conservative economic management and simply rely on the fact that the USD is the reserve currency. Productivity has been replaced by asset-inflation. Now that that has proven to have failed, they now pursue it again to attempt to prop up prices. This begs the question of: “who benefits from these policies?”