Teutonic Knight

A Company Is Too Big to Fail? Make It Smaller

Business is dynamic and driven by profits and powe. This outsource "game" I believe got started in the eighties. If the U.S.had not moved in to China to "exploit" its low-rate labor, many other industrialized nations will. They would then flood the markets with re-directed Chinese manufactured goods even with our tariffs.

The same could be said with our opening our colleges to educate and train hundreds of thousands Chinese students. Many western countries like Canada and the UK have surplus capacity in their higher education system. If we don't then the next generation of top Chinese government heads and CEO's would be exclusively Canadian and UK trained, and their would invariably favor those countries in their business decisions by reason of affinity.

I used to think the same as you do. Maybe the world would be better if it is controlled by a computer - that is the Science Fiction novel I am working on and will be completed when I retire to be made into a Hollywood Movie.


On Feb 13 03:24 PM 303820 wrote:

> ?

A Company Is Too Big to Fail? Make It Smaller

303820,

I looked over that article on the link I quoted you, and I noticed that you also commented on that article as well.

My answer to your question is very short - No, the Chinese are not and will not buy American-made cars (that are assembled in the U.S. with American labor). Our unionized rate is well over $20 an hour plus benefits. Their rate is probably well under $3 an hour. With such a huge disparity, they (the Chinese) would simply claim that they could not afford the price of our car and would insist that they be assembled in China with Chinese labor.

The interesting thing is that if we (GM, for example) do not move it to cater to the Chinese, someone will, you name it, the Germans, the French, the Japanese, the South Koreans, all our competitors.


On Feb 12 07:21 PM 303820 wrote:

> Teutonic:
> GM is making cars in China for the Chinese market...Are the Chinese
> buying any American made cars?

A Company Is Too Big to Fail? Make It Smaller

Hi 303820:

According to this recent article in Seeking Alpha: seekingalpha.com/artic..., it would seem to that GM is making money and selling GM-designed cars and technologies in China. Click on the link to view.

Teutonic


On Feb 12 04:39 PM 303820 wrote:

> MR Filonof...who the hell made you an expert...it's anti Americans
> like you that destroy this country...you want GM...GE AND BOEING
> to die...how about killing TOYOTA and AIRBUS... How about the politicians
> in Washington protecting the working stiffs of this country like
> other country protect their own workers by manipulating their currencies
> and sticking heavy import tax on our product...How many American
> cars do the Koreans buy?...How many American made cars do the Japanese
> buy? How many American cars do the Chinese buy? what I would like
> to know is ... what are you guys getting for bad mouthing every thing
> that's American...GM's problem is not it's products...it's problem,
> is people like you.Spreading negativity about every thing that's
> American!

Challenges and Opportunities for Defense Sector

Scott,

Thank you for a very comprehensive article/report.

BTW, what would be your take on the latest "talk" and overtures from the Russians on the Missile Defense Shield in Poland? Understandably what we say here in SA about this is speculative at least for now.

Thanks
Teutonic

Forget GE, These Are the Industrials Investors Should Consider Owning

Alan,

Your article is illuminating and rational supported with facts, numbers and objective analysis. Particulary enlightening is that you dialoged with us interactively. This makes it exciting to read your article and the comments. You're dynamic.

Although you mentioned that you're not an expert in following some of the big Cap defense stocks such as LMT, NOC, GD and BA (the Big 4), I wonder if you could share some thoughts with us, in addition to your observations on their balance sheets, regarding their outlook in the coming 2-3 years, i.e., during the first tenure of the Obama administration.

While there had been relatively muted coverage on Obama's intention on the defense budget, perhaps eclipsed by our pre-occupation with the financial crisis and the debate on that sector, it is my belief (without inside knowledge) that given the current budgetary constraints, defense budget would have to give.

As known, late last year a prominent retired Air Force General took the unusual route of going public to ask Mr. Obama not to cancel the Missile Defense Program, in particular the shield in Europe. With the war winding down in Iraq, combat spending will wane.

So what would be your take of the outlook? Thanks in advance.

Teutonic

[Disclosure: I do not own any defense stockslisted in your article, and I am not in the employ of the defense companies listed in your article as well]