mlongj

Car Audio Entertainment: RaySat, AT&T Make Their Move

With regard to the article, I do not see this as being a major competitor to Sirius XM. Rental businesses, truck drivers, and RV enthusiasts? Really? Well all three of these areas are in big trouble going forward with the current economic downturn. The trucking industry is on the brink of bankruptcy in many areas of the country (over 3000 trucking company failures in 2008). If the customers begin defaulting on bills from trucking companies (presently beginning to become a huge concern), they will default on the payments to creditors. The RV industry is suffering huge losses at the moment as well (connected to the auto industry Ford). Car rental companies are seeing the effects as well (those that used this service have lost their jobs in many areas of the country).

In economic downturns, individuals seek out cheap entertainment, such as Sirius XM, movie rentals, etc that can be enjoyed at home or in ones car. Sirius is not an extravagant form of entertainment compared to what is available today. It will remain "cheap" for the next 2 and 1/2 years due to the price cap. This is probably why Mel says that he can guarantee a revenue increase in such an economy, where others are really struggling to break even.

Relmor

I understand your perspective on our dire economic situation, but it really is not as bad as you are suggesting. If and when the bottom falls out, it will be much more tolerable in this country than anywhere else in the world. The world is much too interconnected to let the US go bankrupt, and the world knows this simple fact. I would predict major problems going forward in China as we are not buying their goods like we used to. They will suffer more than we will as will most non-democratic countries. The chinese must lend us the money to support their own economy. After all, we owe them half a trillion already. What happens if we can not pay them back? What will they do? What can they do? They have the problem of feeding and controlling nearly 2 billion people in this downturn. There might be major unrest in China and that should keep them plenty busy; which is why they will continue to lend us the money necessary to operate. As we approach a one world government, debts will be forgiven as it has been done in the past. The only difference is that it will be the debt of the US that is forgiven and not third world countries. The inevitable is somewhat further in the future as China is ready and willing to lend us another trillion or so to get through this debacle. It's not the "end of the world" yet. However, I do see a socialist society before I die on a global scale. I believe this will be due to basic survival as we continue to deplete the resources of the world. Nevertheless, it will not be this year or the next or the next in my opinion. But for the sake of argument let's say that it does come to pass and we fail as a nation in the next 2 years. Will it really matter what equities are held by individual investors? No it will not. It will not matter if you bought or sold as nothing will have value at all. In a socialist society, everyone is equal and his or her needs are met by the government which controls everything. We are all in this together. Nevertheless, I consider your posts to be very thought provoking and I appreciate the opportunity to respond.

Long Sirius XM