OT: Buying GM Stock, a steal at $2?

[Brucelee]

The below is from the UAW pension web site. interesting though, the SS is in the same boat. Not enough workers to support the promises made by the feds.

How about that sports fans!








. Is your pension up to specs:

Today, auto pension plans are underfunded and the American auto industry confronts a host of financial problems: Very high fixed costs (e.g., GM says its cost per hour for U.S. employees was $78.39 in 2003), global excess capacity, rising gas prices, and price deterioration due to costly rebates.

There is the simple problem of work force demographics. Auto workers are getting older and retiring. There are not enough new workers – or profits – to support this growing pool of retirees with contracted benefits. GM/Delphi already have 2.5 pensioners for every active worker and 60 percent of UAW members in that firm will be eligible to retire within 5 years; each car and truck sold by the Big Three is said to carry $900-$1,900 in legacy costs.


http://www.knowyourpension.org/pensions/UAWpensions/UAW_pension_qa_3.aspx

[Blue-S]

Where was all this "let the market decide" sentiment when the bank rescue package went through? Did the banks not put themselves in a poor position by loaning money to people that could not repay, and then packaging those loans into financial instruments so complex that it is difficult to determine just how screwed the investors are? Maybe the lack of outrage is because there are no unions involved...

BTW -- To keep this on topic: don't buy GM stock.

[Brucelee]

Originally Posted by Blue-S

Where was all this "let the market decide" sentiment when the bank rescue package went through? Did the banks not put themselves in a poor position by loaning money to people that could not repay, and then packaging those loans into financial instruments so complex that it is difficult to determine just how screwed the investors are? Maybe the lack of outrage is because there are no unions involved...

BTW -- To keep this on topic: don't buy GM stock.

My theory on that is as follows:

When banks get shaky, everyone gets shaky. The thought of a bank default likely hits almost everyone. So, we went along with sheep. Also, that was the first step and most I think thought that would be sufficient.

Since then, it has been like a death of a thousand cuts and I think many are getting tired of this and feeling like we are being hose by the big brains.

HA! Great question...the thinking must be, it's okay to drive a Honda, but it's not okay to get a loan from Japan?????

I was against the bank bailout...we are now printing money (literally) to pay bad debts. In the history of the world, the only thing that kills a society faster than that is war.

Gonna be a fun 10 years ahead of us!

Originally Posted by Blue-S

Where was all this "let the market decide" sentiment when the bank rescue package went through? Did the banks not put themselves in a poor position by loaning money to people that could not repay, and then packaging those loans into financial instruments so complex that it is difficult to determine just how screwed the investors are? Maybe the lack of outrage is because there are no unions involved...

BTW -- To keep this on topic: don't buy GM stock.

[fatmike]

Originally Posted by Fred Demara

I was against the bank bailout...we are now printing money (literally) to pay bad debts. In the history of the world, the only thing that kills a society faster than that is war.

"a war or 2"

[Brucelee]

Originally Posted by fatmike

"a war or 2"

War used to be good for the economy. What happened?

Originally Posted by Brucelee

War used to be good for the economy. What happened?

as long as you're on the side that doesn't get the bomb dropped on it... :chicken:

[Brucelee]

Originally Posted by Fred Demara

as long as you're on the side that doesn't get the bomb dropped on it... :chicken:

I think we should bomb Detroit. Alert the folks first so that they can jet down to NO for Mardi Gras.

Then bomb the place flat. Then like we always do, rebuild it, kind of like a Marshall Plan.

If that works, move on to St. Louis etc.

What do you think?

[Lil bastard]

Originally Posted by Brucelee

War used to be good for the economy. What happened?

"Only the Dead have seen an end to War" - Plato

[Brucelee]

Originally Posted by Lil bastard

"Only the Dead have seen an end to War" - Plato

Good one!