zombi

Investing Now: What You Don't Know Can Hurt You

The main problem now is that USA is not very competitive on the global markets and thus it is very difficult to obtain the liquidity needed to sustain the economic grouth. The banks unwise spend the capital in not worthy investments and they are now in negative teritory. In order to regain confidence in the financial markets it is obvious that a financial stimulus is needed. A huge financial stimulus. But the problem is that the inflation must be under control, which is very difficult to manage.

GM Volt: Dream Car or Road to Bankruptcy?

GM will survive in these trouble times ONLY if:

1. the management is sincere, open for discussions and wise
2. they MUST change their business model, which in the current conditions is not profitable.
3. the cars and trucs made by GM must be more fuel efficient, reasonnably priced and good looking in order to attract more customers and thus generate more sales
4. cut all underperforming production units immediately
5. find cheap financing which is so important for the financial survival in the next 2 or 3 years.

Does the U.S. Have to Worry About Its Credit Rating?

I think that the ability of each country to take credit and to reimburse it later (principal + interest) depends on the ability of the economy to generate added value and to have positive cash flow. If the cash flow is negative and it is not able to generate added value to the economy the credit rating will reflect that situation, thus it is very correct that the credit rating of Botswana is way better that that of Japan (which currently bears a huge debt load).