raja

Big Three Automakers: Recapitalization or Bankruptcy?

It is only a matter of time. Previously, we thought one of the so-called Big Three would go bankrupt . But now it seems that 2 out of 3 stand a good chance to go bankrupt. We would still have enough auto companies manufacturing cars/trucks to meet our demands. The days of buying/leasing a new car/truck every 3 years are gone. More and more folks will drive their vehicles for much longer 5-7 years (if not 10-12 years). The economic conditions, and the cash crunch will hit the average person like never before. Every thing from salt to steak is costing more. Imagine spending big bucks on a new car every 3rd year. No way that is happenning. Spending habits are changing and are going to be like that for a long long time. This generation gets to experience the worst times like never before in a long long time.

The sins of UAW and their unrealistic demands will rankle them very soon and for a long long time. Bankruptcy is not an option, it is a requirement. Any bail out,half measures or stop gap arrangements will only delay the inevitable, while enhancing the pain as we go further.

By the end of 2009 to mid 2010, I am expecting 2 of the big three to go bankrupt. Take you pick, it does not matter who stays behind to limp back to life

GM and Ford: Still Easy Shorts

Mulally is another moron who was recently (about 3-4 months back) telling us that the turnaround is going fine. These morons (CEOs and Ex- CEOs like Bill Ford, Alan Mullay, Rick Wagnor) will be walking away with millions even if they lose their jobs. They are all over Wallstreet, the CEOs of MER, CITI, LEH, etc etc. telling us every Qtr. that the worst is over and everything is fine. Try dodging these bullets - Housing, Subprime, Inflation, Recession, Credit Crunch, Oil, Never ending Middle East crisis, Job losses etc. etc. Every week, at least a couple of them hit you



They keep postponing the inevitable - every heard of painful slow death due to a 1,000 cuts and bruises ??