Re: fiat
- From: one80out@xxxxxxxxxxx
- Date: Fri, 8 May 2009 18:15:50 -0700 (PDT)
On May 7, 8:01 pm, "John C." <j...@xxxxxxxxx> wrote:
<one80...@xxxxxxxxxxx> wrote in message
news:09ce1d3b-2459-4299-8c21-b2a788cb4e66@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
* GM's "new plan" for the $40 billion it owes to its creditors is to
trade them shares of stock for their I.O.U.'s. Adding the necessary
shares to the ones already in circulation -- currently trading at
$1.59 -- would dilute the value of all shares to $0.02. That's not a
whole lot more than $0.00. (Picture this: you're walking along and
you see a penny and a share of GM stock lying side-by-side on the
sidewalk. Which one would you stoop to pick up? ("Neither" is an
acceptable answer.))
What year is the penny? :)
--
John C
'03 Cobra convt.
'00 Cobra R
Let's say it's from the last year they were made of copper, which
would make two of them worth more than a post-bailout share of GM
shock.
More fun and games came out today, in a 10-page report from GM to
members of Congress regarding GM's plans for overseas production. I
had thought, after I posted my calculation that an $18,000,000,000
bailout to save 73,454 jobs GM works out to $245,000 per job, that
this number was understated for the reason that the 73,454 jobs
doesn't take into account the closing of Pontiac, Saturn, Hummer, and
GMC. (It doesn't take into account workforce shrinkage since September
2007, either, which is when the 73,454 number was operative.)
Today GM admits to another plan to shrink its U.S. assembly line
workforce: that its current rescue plan includes doubling the
proportion of cars for the domestic market that it builds offshore.
The correct government response to this plan is, that if that is what
it takes to keep the doors open, then that's what it takes. El Hefe's
response will be, of course, another round of threatened facial
rearrangements and skeletal fractures, and an additional influx of
misappropriated TARP money sufficient to make up for the lost savings
from shipping the jobs overseas.
Here are some quotes from the Washington Post:
"Most of that growth [from 2010 to 2014] -- about two-thirds of it --
will occur in the United States. But about one-third of that growth
will come from other countries, mostly Mexico and South Korea."
"Labor costs in those countries are far lower. While paying a U.S.
autoworker with benefits costs about $54 an hour, a South Korean
worker earns about $22 an hour, a Mexican worker earns less than $10
an hour and some Chinese workers can earn as little as $3 an hour,
industry sources said."
"According to the figures shared with lawmakers, the percentage of
GM's U.S. sales of cars built in the United States dips from 67
percent in 2009 to 61 percent in 2012."
Source: http://www.washingtonpost.com/wp-dyn/content/article/2009/05/07/AR2009050704336.html
180 Out
.
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