Big 3 going to get the bail out $ and CitiGroup seems way undervalued.
Buy CitiGroup on Monday morning!
Lets get this straight, Citicorp goes down on $5b of inestement and GM looks like a C11 filing, and there is equity??
I don’t think so, neither does the market
Hey Nick times are tough for all here and Christmas is shining bright around the corner can we apply for a bailout and possibly get a two day first come first serve shot at the HVAC training free of charge?
I bought some Ford last week when it was around $1 (same as their IPO 50+ years ago), I’m not too sure about GM, but I do think the bailout is coming in some degree. It looks like Canada might even help some of them out due to the number of Canadians they employ. I do think that Citicorp will pull away ok due to all their equity, they got $25 billion in the bailout and have another $50 on tap. Their biggest problem was as soon as they hit the $5 mark all the mutual funds were forced to sell
I prefer a low price (value) fund where gains are only moderate - but so are the losses no matter how bad the market.
Government ownership will not help the stock price recover…
In Canada the three auto corp. total about 1,000,000 jobs here.
So just figure 33,000,000 Canadians total, about 13 to 15,000,000 work, others are too old or are children. Just do the math, about 7.7 percent of the work force.
Will there be a bail out, ohhhh yea. They can’t let that many go on UI. all at once not to mention the lost taxes and spending. And how do you retrain them and for what???
I can’t see it not happening.
From my calculation they have already borrowed more than their market cap, they look like the perfect short-sell if you can borrow the shares.
Hey John, I think that you got some decimal points out of place there.
Bailing out the big three is insanity. All that is doing, is delaying the inevitable. After burning through $25 billion, they are right back where they started = paying too much to produce a car. Apparently G.M. pays about $78. / Hr. to produce a vehicle ( all expenses in - not just wages) while Toyota spends about $34. How does a bailout fix that?
The only thing that makes any sense is to declare chapter 11, dump the excessive wages and the unbelievable health care and retirement benefits to level the playing field and then get back to work. This bail out is sending $25 billion down a rat hole.
They should have let Lehman and AIG go under instead of bailing them out. Let the bill collectors go after the CEO’s. Spend the 700 B. on infrastructure. It pis** me off when I have to pay taxes on some other persons miss-judgement. Same for the auto companies. There are plenty of Honda and Toyota jobs: they do it right. CEO’s better look out. The train is coming. But, where is my bail-out?
Couldn’t let AIG go that is how all the CIA money is funneled around the globe.
Now, they have more. I wonder how much Halliburton gets.
They have no intention of fixing the American Auto Industry. They’re simply going to back door socialize it to protect and expand the union labor force.
The Dems don’t want to lower GM’s hourly cost to Toyota’s, they intend to raise Toyota’s hourly cost to GM. This will provide more union jobs and allow GM to compete with an inferior business model.
It will also cause the consumer to pay more for a new vehicle, which will result in fewer vehicle sales, which will result in failure of the industry again, which will result in further government subsidies, which as we all know is…
WILL! SAY IT AIN’T SO ! ( but I’m afraid you’re right) Chapter 11 is the only answer but with the Democrats in power and the auto industry being one of the most heavily unionized, you can count on the subsidy going through and all the unions prospering. You see? You can buy votes.
Me writes yesterday:
So, did I call Citigroup right?
Only if you bought it before the open on Monday.:roll:
I have to say in my opinion your right. There is a reason why a free market works. I wont get into the technical aspects of economics here. But if they have made poor decisions for the last 30 years why would people have any delusions that anything has changed?
I do see how a bailout would help, but like you said, its just postponing the inevitable.
On a side note, I read not too long ago, GM was in the worst financial shape out of the big three. Also it was one of the worst buys in the market right now. I don’t have that article to post here so trust your gut instinct.
Also the Pres elect has grand plans for us tax payers to retool the auto industry for creating more hybrids. If we must pay for this stuff, we should force them to make hybrids worth our while. 25-30 MPG is ridiculous when there is technology out there to make 60-100 MPG cars.
Oh wait, never mind about free enterprise.
Can you provide a link displaying this wonderful technology or are the oil companies hiding it? :sarcasm:
I’d love to wrong so please show me.
P.S. Making 1000 lb. cars out of tinfoil, duct tape doesn’t count.