User 283977

GM Job Loss: Bogus Economics

Lets take a look at what Mr Conerly has said in the recent past… Then I will sum up below … NOTE MY COMMENTS ARE IN CAPS.. DON'T CONFUSE WHAT I HAVE TO SAY WITH WHAT THIS GUY HAS TO SAY…

July 31, 2008 Recession? Not this year.

"Certainly there's no recession when the economy is growing substantially, even if the growth is below trend. That's where we are today." "Business planning implications: don't get
caught up in the doom and gloom headlines. Look into the
detail of how your customers are faring. Plenty of sub-
sectors are bucking the trend."

August 5, 2008 - Auto Sales are cause for Optimism

"So is this a good time to buy GM (GM)? I have to say, if it was truly worth $30 a share back in 2007, it looks like a great bargain at $10 today. But here's the rub: I'm not sure it was worth $30 last year. Maybe it was, but I would want to sharpen my pencil on their employee liabilities and their competitive position before buying the stock. I must say (here's a non-expert comment) that they have some good looking cars for a change. If I weren't such a practical, reliability focused buyer, I would abandon the Japanese nameplates for a GM or a Chrysler."

NOTE HE ADMITS HE IS A NON EXPERT WITH RESPECT TO THE AUTOMOTIVE INDUSTRY

August 15, 2008 - Retail sales are weak, but no towel being thrown in.

"Consumers are just throwing in the towel," 'according to Global Insight economist Brian Bethune. I like a nice quote, but Bethune displays utter ignorance in his search for news exposure.'

August 15, 2008 - Four reasons we can't call it a recession - yet

"In total, my best guess is that when it's all over, we'll call it a growth recession, meaning that the growth rate of the economy slowed significantly, but it wasn't quite a real recession."

September 23, 2008 - 400 words on the financial crisis

"Financial crises have occurred for centuries, ranging from the tulip craze to the South Sea Bubble to, more recently, the Asian Financial Crisis. Many great banks have failed over the centuries, and although their loss seems staggering at the time, the consequences are very fleeting.
Today's crisis is large to Wall Street, and to the secretary of the treasury, who comes from Wall Street. Main Street, however, is not doing as badly.
…. What should everyday people do about this crisis? Sit tight. This is no time to be dumping stocks or bonds or closing bank accounts."

THE DOW WENT OFF A CLIFF SHORTLY AFTER THIS ADVICE…

November 16, 2008 GM Job Loss: Bogus Economics

The number of auto jobs we have is tied to the volume of cars we produce and sell in the United States. If GM fails and then the economy recovers, the jobs will recover. They may not be GM jobs. They may well be Honda (HMC) or Toyota (TM) jobs, but still located here in the United States.

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ACCORDING TO BILL CONERLY, ITS OK IF GM GOES BANKRUPT… THE LOST AMERICAN JOBS WILL BE REPLACED… OF COURSE, THE HEAVY MANUFACTURING INDUSTRY IN THE US WOULD BE DECIMATED, BUT NO PROBLEM… HONDA AND TOYOTA WILL TAKE OVER AND GIVE US NEW JOBS… I DO WONDER WHO WOULD BUILD OUR TANKS… BUT, WHAT THE HECK… LETS SAVE AIG FOR 150 BILLION BUT LET GM GO DOWN THE TUBES FOR 17 % OF THAT NUMBER…

LETS SEE. GM SOLD OVER NINE MILLION VEHICLES IN 2007… ALL HONDA AND TOYOTA NEED TO DO IS RAMP-UP THEIR FACTORIES, ALL THOSE FACTORIES THAT EXIST IN THE UNITED STATES, AND STAMP OUT ANOTHER NINE MILLION VEHICLES…. OUR AUTOMOTIVE WORKERS CAN RELOCATE THEIR FAMILIES, AND START THEIR CAREERS OVER MAKING HONDAS AND TOYOTAS … NOT SURE ABOUT WHAT HAPPENS TO THE RETIREMENT PAYOUTS FOR RETIRED GM WORKERS… THAT'S NO CONCERN TO CONERLY WITH HIS "LET THEM EAT CAKE" ATTITUDE… PERHAPS HE WOULD BE MORE CONCERNED IF HE REMEMBERED WHAT HAPPENED TO THE PERSON THAT SAID… "LET THEM EAT CAKE."

OF COURSE, IT WILL TAKE QUITE A BIT OF TIME TO RAMP-UP THE US HONDA AND TOYOTA FACTORIES TO REPLACE THE PRODUCTION OF NINE MILLION VEHICLES THAT GM SOLD IN 2007….

IN THE MEAN TIME MR CONERLY, WHAT DO YOU SUGGEST THE AMERICANS THAT LOST THEIR JOBS ARE GOING TO LIVE ON?????

WHAT DO YOU THINK, DOES HE KNOW WHAT HE IS TALKING ABOUT?