Comments on: Who Makes the Best Cars? http://www.dailyreckoning.com.au/who-makes-the-best-cars/2008/12/08/ An independent perspective on the Australian and global investment markets Sat, 21 Nov 2009 10:39:45 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Coffee Addict http://www.dailyreckoning.com.au/who-makes-the-best-cars/2008/12/08/comment-page-1/#comment-56614 Coffee Addict Thu, 11 Dec 2008 06:21:13 +0000 http://www.dailyreckoning.com.au/?p=4579#comment-56614 I feel tempted yet again to post some views for the day. 1. The outcome of the US car maker bailout talks will in my view have NO medium term impact on the number of cars sold in the US or elsewhere. The same things will happen regardless of whether its called Conservatorship (under a Car Czar) or a Chapter 11. I think they do make good cars Bill - the only problem is that they can't do it profitably. 2. Of more importance to the market are the current predicaments of firms like GMAC and XL Capital. For some interesting reading on some key CDS borrowers in the Aussie market see http://www.imf.com.au/pdf/CDO_11.pdf . It makes frightening reading. 3. The Chinese have been (very predictably) window dressing the real nature of their predicament. The snippet of trade data that has been released should have floored the Australian and Asian markets today (Thursday) but it didn't. The Chinese data probably understates the true situation but by how much I don't know. 4. Yeah. Governments will probably dump some gold to pay debts. What choice have they got? It will probably send yet more juniors to the wall. At least my remaining holds are a few years from production. Anything can happen here! 5. Expect California and other states (in the US and Australia) to follow programs similar to what the first Kennett Government did in Victoria during the 1990's. They don't have a choice - and what they realise in asset sales will be disappointing. The word I have received(reliably or not ) in NSW is for drastic program expenditure cuts - combined with increased capital works expenditure. Obama has also said as much between the lines, but where will the money for US capital expenditure come from??? Either thin air or a printing press me thinks. I feel tempted yet again to post some views for the day.

1. The outcome of the US car maker bailout talks will in my view have NO medium term impact on the number of cars sold in the US or elsewhere. The same things will happen regardless of whether its called Conservatorship (under a Car Czar) or a Chapter 11. I think they do make good cars Bill - the only problem is that they can't do it profitably.

2. Of more importance to the market are the current predicaments of firms like GMAC and XL Capital. For some interesting reading on some key CDS borrowers in the Aussie market see http://www.imf.com.au/pdf/CDO_11.pdf . It makes frightening reading.

3. The Chinese have been (very predictably) window dressing the real nature of their predicament. The snippet of trade data that has been released should have floored the Australian and Asian markets today (Thursday) but it didn't. The Chinese data probably understates the true situation but by how much I don't know.

4. Yeah. Governments will probably dump some gold to pay debts. What choice have they got? It will probably send yet more juniors to the wall. At least my remaining holds are a few years from production. Anything can happen here!

5. Expect California and other states (in the US and Australia) to follow programs similar to what the first Kennett Government did in Victoria during the 1990's. They don't have a choice - and what they realise in asset sales will be disappointing. The word I have received(reliably or not ) in NSW is for drastic program expenditure cuts - combined with increased capital works expenditure. Obama has also said as much between the lines, but where will the money for US capital expenditure come from??? Either thin air or a printing press me thinks.

]]> By: John http://www.dailyreckoning.com.au/who-makes-the-best-cars/2008/12/08/comment-page-1/#comment-56135 John Mon, 08 Dec 2008 17:20:29 +0000 http://www.dailyreckoning.com.au/?p=4579#comment-56135 I hear ya ralph - at least the South Africans have the decency to tell you when they're robbing you! I hear ya ralph - at least the South Africans have the decency to tell you when they're robbing you!

]]> By: ralph hill http://www.dailyreckoning.com.au/who-makes-the-best-cars/2008/12/08/comment-page-1/#comment-56133 ralph hill Mon, 08 Dec 2008 17:12:34 +0000 http://www.dailyreckoning.com.au/?p=4579#comment-56133 Clearly, Mrs. Pelosi and the 'Ben and Hank Show' have quietly laid "Mr. Market' to rest. RIP. But, I walk away from reading this article thinking that the thesis is: if I don't like the idea of all my future tax payments going into a slush fund for the former wizards of wall street, in perpetuity. Then my option is to move to South Africa.... "The evidence of crime is everywhere." Of course, the biggest CRIME is the "rescue/bailout" plan. And all I hear is "when the economy picks up next year...." But it won't. They can cook the books of Corporat Amerika, AGAIN, and make the economic numbers sound passable. SHEER LUNACY. Clearly, Mrs. Pelosi and the 'Ben and Hank Show' have quietly laid "Mr. Market' to rest. RIP.

But, I walk away from reading this article thinking that the thesis is: if I don't like the idea of all my future tax payments going into a slush fund for the former wizards of wall street, in perpetuity. Then my option is to move to South Africa....

"The evidence of crime is everywhere." Of course, the biggest CRIME is the "rescue/bailout" plan. And all I hear is "when the economy picks up next year...."

But it won't. They can cook the books of Corporat Amerika, AGAIN, and make the economic numbers sound passable. SHEER LUNACY.

]]>