by MoneyNing on December 9, 2008
After pushing the ball around a bit, it looks like the automaker bailout could be sent to being voted as early as tomorrow (Wednesday). If you thought bailing out the banks were unreasonable, you would really be upset at this bailout. The US automakers clearly first need a major restructure and fire all the top executives who’ve made bad decisions for years.
If you think about it, there’s really not much that’s good about their business model. The US automakers have:
- No Pricing
- Higher Cost
- Bad Branding
- Products with no edge over competition
Until most of the above are fixed, the automakers will continue to lose money for years to come.
by MoneyNing on November 26, 2008
I’m watching Jim Rogers, a legendary investor is on CNBC right now and he put in a good perspective on his views of bailouts. According to him (and this is not word for word but hopefully captures the meaning):
The system is setup so incompetent companies fail and competent ones buy them. This starts everything over from a position of strength. What we are doing right now is taking money from the competent ones, then giving it to the incompetent ones and telling the competent companies that they are going to compete with you.
It’s tough to say whether the bailouts will turn out good or not, but what he said made a lot of sense. He also referenced Japan and that we are doing similar things to what they did, which didn’t work. To be more specific, Japan is still recovering after 28 years. Yikes!
Let’s see what happens to the bailout!
