More imminent doom

[Mich the Tester]

I wonder how many banks will fail when the US car industry goes bust. How many bad loans and worthless shares are tied up in that bag of tulipe?

[BrilloPad]

I wonder how many banks will fail when the US car industry goes bust. How many bad loans and worthless shares are tied up in that bag of tulipe?

Just print more money to keep them going! Sorted......

[AtW]

I wonder how many banks will fail when the US car industry goes bust.

It won't go bust.

What should happen is that 1 of the big 3 there should go bust - there are just too many manufacturers there and none can make decent money, so at least 1 should die to give space to others.

Ford will manage, GM probably too but Chrysler is a goner - US politicians don't want to be seen as saying these things openly but in my view they clearly just waiting for one to go bankrupt, in fact the sooner Chrysler declares bankrupcy the sooner help will come to surviving ones.

[Ruprect]

It won't go bust.

What should happen is that 1 of the big 3 there should go bust - there are just too many manufacturers there and none can make decent money, so at least 1 should die to give space to others.

Ford will manage, GM probably too but Chrysler is a goner - US politicians don't want to be seen as saying these things openly but in my view they clearly just waiting for one to go bankrupt, in fact the sooner Chrysler declares bankrupcy the sooner help will come to surviving ones.

the lehmans of the car world then?

[Purple Dalek]

I wonder how many banks will fail when the US car industry goes bust. How many bad loans and worthless shares are tied up in that bag of tulipe?

Hmm, and much of the 'labour cost' of American car workers was actually rather like the UKs pension system. So there'll be an awful lot of upset old people too. Which'll knock on to the scam that is their medical and care system.

By the time the dust settles I recon, like Rogers was saying in the Reuters conference call yesterday, they should have let the banks go bust.

I think he's right to be getting out of the US entirely and pushing into agriculture in the far east...

[Mich the Tester]

It won't go bust.

What should happen is that 1 of the big 3 there should go bust - there are just too many manufacturers there and none can make decent money, so at least 1 should die to give space to others.

Yep, but the trouble is that they share some suppliers. If one goes bust and takes down it’s suppliers the others are stuck with nowhere to buy parts, unless they can very quickly buy out the suppliers.

[Doggy Styles]

By the time the dust settles I recon, like Rogers was saying in the Reuters conference call yesterday, they should have let the banks go bust.

I think he's right to be getting out of the US entirely and pushing into agriculture in the far east...

...the killing fields.

[AtW]

Yep, but the trouble is that they share some suppliers. If one goes bust and takes down it’s suppliers the others are stuck with nowhere to buy parts, unless they can very quickly buy out the suppliers.

Parts will still be sold to older cars - it is probably the most profitable business actually.

Even if they save all 3 right now I can't see at least one of them not going bust within 12-18 months.

[expat]

Parts will still be sold to older cars - it is probably the most profitable business actually.

You would think so, when you look at the price of parts. But if you look at sales depts open late 7 days, parts depts open M-F 9-5, it says otherwise.

[AtW]

It won't go bust.

What should happen is that 1 of the big 3 there should go bust - there are just too many manufacturers there and none can make decent money, so at least 1 should die to give space to others.

Ford will manage, GM probably too but Chrysler is a goner - US politicians don't want to be seen as saying these things openly but in my view they clearly just waiting for one to go bankrupt, in fact the sooner Chrysler declares bankrupcy the sooner help will come to surviving ones.

My prediction posted on 12th December 2008, 13:28

Ford is clearly making it best out of 3, GM seems cool and the White House just confirmed Chrysler would go bankrupt

Next time have a little more faith in my predictions!