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Topic:
Oil industry vs auto industry
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Kjarhall
Title: The Pungent One
Posts: 915
Registered: 2002-3-1 15:47:21
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Date Posted:
1/1/00 12:00am
Subject:
Oil industry vs auto industry
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paulg_68 posted:
Yukishiro1 posted:
The auto industry was about to go under
No it wasn't. Two companies were about to go under and they would have been replaced by different companies.
The only thing that could make the auto industry go under is if people were to stop buying cars.
Change it to "US Auto Industry". Then it's pretty close to true. Thousands and thousands of people out of work. There is not even close to a guarantee that those US jobs would have come back via other auto companies.
That's without mentioning the indirect consequences, such as consumer confidence suffering even more, more unemployment $$$'s needed, less tax money coming in, etc. etc.
Even a monkey that just had shock treatment would know better than to equate it to the oil industry. 
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Special-Fred
Title: Sultan of Spank
Posts: 245
Registered: 2003-7-30 16:12:04
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Date Posted:
1/1/00 12:00am
Subject:
Oil industry vs auto industry
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Thats because the auto industry is supported by unions that support democrats. Oil companies don't support democrats and therefore are the devil
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Yukishiro1
Posts: 3,243
Registered: 2002-9-20 23:52:57
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Date Posted:
1/1/00 12:00am
Subject:
Oil industry vs auto industry
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paulg_68 posted:
Yukishiro1 posted:
The auto industry was about to go under
No it wasn't. Two companies were about to go under and they would have been replaced by different companies.
The only thing that could make the auto industry go under is if people were to stop buying cars.
You were the one who set up the comparison between the whole auto industry and the oil industry. When what you were really talking about was assistance given to two companies.
So I guess if you want to correct yourself you're welcome to do so. I don't see that it really has any impact on the dicussion, though.
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SoBaKi
Posts: 487
Registered: 2002-2-26 09:31:13
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Date Posted:
1/1/00 12:00am
Subject:
Oil industry vs auto industry
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Aerlinthian posted:
I love you brother_tard.
Brother_Tempus posted:
I'm a jew.
Aerlinthian posted:
NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
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Know god, know sin. No god, no sin.
Dogs are animals.
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Date Posted:
1/1/00 12:00am
Subject:
Oil industry vs auto industry
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theredkay1 posted:
Yukishiro1 posted:
The auto industry was about to go under because it couldn't secure short-term financing or pare down its liabilities. The gubmint stepped in and provided short-term financing and established a deal to let the industry get rid of a portion of its liabilities. Now the auto industry is doing ok.
Meanwhile, we just give huge tax breaks to oil companies every year, regardless of how well they're doing. Your comparison is even stupider than the usual Paulg comparison.
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I know what you're trying to do but you're just sailing another failboat over the falls. - imaloon1
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Date Posted:
1/1/00 12:00am
Subject:
Oil industry vs auto industry
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Special-Fred posted:
Oil companies don't support democrats...
I don't think that's true at all.
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Clackdor
Posts: 163
Registered: 2001-9-21 12:10:52
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Date Posted:
1/1/00 12:00am
Subject:
Oil industry vs auto industry
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Saving GM and Chrysler was akin to disallowing entrepreneurial innovation for the auto industry. Might as well call ourselves China and revert to a planned economy.
You know what's worse? They didn't do this for any sort of altruistic reasons. They did it because they are in the back pocket of the auto workers' unions.
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If we can hit that bullseye, the rest of the dominos will fall like a house of cards. Checkmate.
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Yukishiro1
Posts: 3,243
Registered: 2002-9-20 23:52:57
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Date Posted:
1/1/00 12:00am
Subject:
Oil industry vs auto industry
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I was sceptical of the wisdom of it at the time but it seems to have worked. It takes a special kind of stupid person to say "yeah, it worked, but I think they did it for bad reasons so it would be better if it had failed!"
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theredkay1
Posts: 611
Registered: 2008-5-16 10:37:09
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Date Posted:
1/1/00 12:00am
Subject:
Oil industry vs auto industry
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Clackdor posted:
Saving GM and Chrysler was akin to disallowing entrepreneurial innovation for the auto industry. Might as well call ourselves China and revert to a planned economy.
face rolling eyes indeed....
Bankruptcy is an important part of a modern economy. Its not always blindingly obvious when a company cant pay its bills if the company should be shut down and liquidated or if it should get interim financing, restructure its liabilities and revenue opportunities and continue on.
The decision maker should be whats best for creditors of the failed company who are owed money. Can you get more by selling off its assets or can you get more by agreeing to take less and allowing the company to continue on and pay you back out of future revenues.
There was almost universal agreement that those who were owed money would get far more if GM and Chrysler continued. The only problem was the companies are very big and they were out of liquid assets....they needed relatively short term financing to make this all work. Usually a large financial industry company (or a group of them) will see value here and provide financing. The problem at that time was that most of these companies were themselves bankrupt and the rest werent sure if they were bankrupt or not (although they were all pretending they werent). So there was no bridge financing available. The government stepped in and filled in for an industry that had self destructed.
Im not sure how the bankruptcy process works in china. It does not seem correct that the govt of China regularly provides bridge financing and then quickly gets rid of its interest in the company.
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