Go, Economy!

[TODE]

I mean, seriously:

So, the bar owner suggested that it would be fair to reduce each man's bill by roughly the same amount

But he doesn't!

and he proceeded to work out the amounts each should pay.

Show your work, asshole!

[Gooch]

Carle Fiorina, former CEO of Hewlett Packard and economic adviser to the John McCain campaign was just on Bloomberg TV saying that Obama has made wise decisions, applauds his daily communication to the public, says he has made smart choices in forming his economic team, and, like many others I've spoken to and heard, attribute the recent rally to positive reaction to Obama's decisions. No one is saying a bottom is in place, and I personally expect an intermediate term rally followed by another decline that will lead to a new low (perhaps beneath the Dow 7,200 level from Oct 2002 and March 2003) but the fact remains that the market has reacted positively recently, four up days in a row for the S&P, and this happens to coincide with Obama's actions. But the markets will act as they will, and the price dictates the news.

[Bojack]

You know what wasn't a cop-out though? The multi-paragraphed article above it explaining in common terms how things work. If you can't understand that simple explanation then, for you, no explanation is possible.

Also, Chrysler and Ford are two of my companies clients. Chrysler is hurting big time. Ford is hurting, too, but in better shape than either GM or Chrysler. In the industry Ford is using the strategy right now of trying to "outlast" the others, with the theory being that once Chrysler and GM are belly-up all initial domestic car sales will transfer over to Ford. (which, maybe not, especially if consumers are burned on buying a 5 year warranty with GM or Chrysler that no longer exists) But GM and Chrysler and Ford are so poorly structured it's hard to feel sorry for anybody -- even the workers, whose unions have been bleeding the company dry for decades.

There are people in GM plants who are making 70 dollars an hour to do nothing. I don't mean like, screwing in a bolt as nothing (most of that is done by machine anyway, the people just certify that it looks right). I mean people were hired, and injured, and while they were out GM hired a replacement. And they can't fire either of them because of the union, so some people are just sitting on a chair reading a magazine or book they brought in and making 60 bucks an hour doing it.

To be fair to the big 3 our general public and government have been very shitty to our auto industry. It's sad that we can give the banks now trillions of dollars in bail out their shit but the big 3 ask for some bridge loans to buy them time until their new UAW concessions kick in and their books/structuring instantly get good and our government spends its time riding their asses for taking private jets. Fuck our government.

[icarusfall]

I'm against bailing out the banks and the auto companies. It's not about being shitty to one or the other.

[Bojack]

At least you're consistent which our government isn't. Besides, the shitty thing is that the auto makers had already set up what was needed. Wall Street fucked the economy, car sales dried up and now they might not last until their restructuring (which happened like a year or two ago) takes effect.

[Gooch]

We've seen a precipitous fall in the price of crude oil and consequently prices at the pump. The fall is most likely driven by a combination of deleveraging and demand destruction due to the global economic recession. The price of crude may continue to fall but I don't expect it to fall a significant amount further. Combine this with what appears to be a slowing down in the rise of the U.S. dollar, setting up perhaps for a future decline which will have a positive cross-market impact on commodity prices and I expect the price of oil to be near its bottom. I could very well be wrong so I'm cautiously and gradually opening positions in DXO. DXO is an ETF that provides twice the return of going long crude oil (i.e. a leveraged ETF). DXO is currently trading at under $4.00 and had a 52-week high of over $29. DXO set its 52-week low of $2.87 on 11/21, not even a week ago. There certainly could still be downside, but oil at the current prices is one of the few things I'd feel a bit comfortable going long for a longer term hold.

[icarusfall]

MOTHER FUCKER

[Tones]

A video documenting one of the Ford factories in Brazil compared to the ones in the US... make sure you listen to the last line in the video.

[Bojack]

A video documenting one of the Ford factories in Brazil compared to the ones in the US... make sure you listen to the last line in the video.

Damn robots tuk ur jerbs!

[Gooch]

Stop The Auto Bailout Campaign - Phase Three


The automakers have made another push for money, now asking for $34 billion when two weeks ago they only needed $25 billion. It's time once again to let our representatives we want to stop the madness.

Stop The Auto Bailout

We need to Call, write, and Fax Congress and tell them we are tired of bailouts. Most of the ideas for this campaign come from Auto Sales Plunge To Lowest Level Since 1982.

Here is the first thing I want you to do:

Call your representatives and say ....

“I DO NOT support any bailout of the auto companies. It is a waste of taxpayer money. Two weeks ago they wanted $24 billion, now they want $34 billion and next month they will need $50 billion.

The best option is a restructuring to eliminate some of their debt. The airlines survived restructuring so can the automakers"
Next it's time for a Fax Campaign.

Congressional Phone And Fax Numbers

Click Here For Congressional Phone And Fax Numbers

Click Here For MetroFax Compatible Fax List For All Congress

Message For Congress

Fax Title: Say No To Auto Bailout Moving Target

Dear senator/congressional rep

Two weeks ago, the automakers said they needed $25 billion to survive. Now they need $34 billion. How much will that be next month?

GM alone needs another $6 billion now ($4 billion immediately) than it did two weeks ago. How much will it need next month?

Can anyone believe anything the auto executives are saying?

Ford Profitability Schedule

Flashback June 22, 2006: Ford to be profitable in 2008

Ford Motor Co. said it was on track to meet its goal of making its North American auto business profitable by 2008 and remained committed to that target. Mark Fields, Ford's president of the Americas, announced the company's upcoming vehicle line-up and a push to offer more fuel-efficient vehicles.

Flashback November 8, 2007: Ford To Be Profitable in 2009

Ford said it was on track to meet its goal of being profitable in North America and in all of its automotive operations by 2009.

Flashback May 22, 2008: Ford To Break Even in 2009

Ford said Thursday it likely will not hit its target to be profitable in 2009, but will just break even said Ford CEO Alan Mulally. "Overall, we expect to be about break-even companywide in 2009 -- with continued strong results in Europe and South America."

Flashback December 2, 2008: Ford sees at least breakeven in 2011

Ford Motor Co said on Tuesday it expects overall and North American automotive business pretax results to break even or be profitable in 2011.

From GM's latest 10-Q

Short-term borrowings and current portion of long-term debt.
September 2008: $7.21 Billion
September 2007: $5.26 Billion

In one year's time, short term borrowing and interest on long term debt has gone up by $2 billion per quarter, $8 billion per year!

If Congress loans GM money, interest on its debt will rise yet again.

GM has $36 billion in long term debt and has a negative net worth of $60 billion.

Is $34 Billion The Beginning Or The End?

I wrote you just two weeks ago asking if $25 billion was the beginning or the end. If you did not know the answer then, you do now.

GM is begging for taxpayer handouts, going to the negotiating table with no contingency plans needing $6 billion more ($4 billion of it immediately) than it did just two weeks ago.

CEO Rick Wagoner keeps insisting that the company has "no contingency plan" should Congress decide not to bail it out.

What kind of CEO has no contingency plans with bankruptcy on the table?

World Will Not End If GM Goes Bankrupt

The very best thing that can happen to GM and Ford is they go bankrupt. The sooner the better. Congress will then see that the world will not end. Both companies will reorganize. Both companies will keep making cars.

The airline industry did not stop flying when it went bankrupt and the auto companies will not stop producing cars if they go bankrupt. In fact, bankruptcies will eliminate the debt on the books decrease interest payments and make the companies more competitive, if and when they ever get around to producing autos that consumers want instead of what the manufactures want to produce.

Coming out of bankruptcy debt levels and interest on debt will be lower. GM and Ford will be more cost competitive.

Not a single job will be saved by propping up GM. In fact, jobs will be lost and money will be wasted if money is thrown at the problem. GM and Ford are suffering under a burden of debt and interest on debt with no conceivable way of paying that debt back.

Bankruptcy Is The Best Option

Bankruptcy is the best option for the Auto industry. If the union disagrees, let it pledge its pension money as collateral, and let Wagoner pledge his personal wealth as collateral for a loan.

Remember ...
In one year's time, short term borrowing and interest on long term debt has gone up by $2 billion per quarter, $8 billion per year!

In addition, GM's burn rate is $2 billion per month. GM loses money on every car and truck it makes.

There is no hope for GM other than bankruptcy and a restructuring of that debt!

The first order of business under any restructuring should be to get rid of GM's management team, lock, stock, and barrel, starting with CEO Rick Wagoner.

I urge you to vote against any bailout for the Auto companies. Any bailout effort would be a further waste of my hard earned money.

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