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-   -   Watched the GM news conference today (https://www.early-retirement.org/forums/f28/watched-the-gm-news-conference-today-42533.html)

cardude 02-17-2009 06:11 PM

Watched the GM news conference today
 
  • Saturn is officially history by 2011. They will try to sell the distribution network to someone. I bet dealers are pissed, since they all had to build new stores to get the franchise. Wow. Sad for the dealers. Who is going to buy a Saturn vehicle now that they know they are being phased out?
  • Got the extra 4B today. May need a total of 30 billion by 2012.
  • 2100 fewer dealers forcasted by 2014. Wow. Big number. No big GM funding to speak of to help dealers as they go away. :frown:
  • Bankruptcy could cost the federal government a total of 100B vs an estimated 30B in loans out of bankruptcy, mostly due to demand falling off a cliff.
  • Still working on trying to sell Hummer, and if it does not happen by March they will just chunk it.
  • Saab will either be sold to the Sweeds, or go into some kind of bankruptcy, but in Sweeden not here in the US.
That's it for now. Another slow day with no sales. Going home to kick the dog................

samclem 02-17-2009 07:01 PM

Quote:

Originally Posted by cardude (Post 785169)
  • Saturn is officially history by 2011. They will try to sell the distribution network to someone. I bet dealers are pissed, since they all had to build new stores to get the franchise. Wow. Sad for the dealers. Who is going to buy a Saturn vehicle now that they know they are being phased out?

Saturn had such a loyal following, but GM blew them off. I liked the plastic body panel idea, but GM ditched it. If they'd been able to build tight, high-quality cars, they could have been a contender. Sorry to see them go, but the brand was just a shell of its former self.
Quote:

Originally Posted by cardude (Post 785169)
  • Bankruptcy could cost the federal government a total of 100B vs an estimated 30B in loans out of bankruptcy, mostly due to demand falling off a cliff.

I guess I should feel like I'm getting a bargain. Instead, I feel like I just put a down payment on a Saturn SUV --with a on a ten year note -- financed at 15%.

Quote:

Originally Posted by cardude (Post 785169)
That's it for now. Another slow day with no sales. Going home to kick the dog................

I hope things get brighter. Ease up on that pooch!:)

JOHNNIE36 02-17-2009 08:45 PM

I'm a GM salaried retiree and leased a Saturn Vue in March 2008. I think it's a great car. It's really my wifes. Heard through the grape vine that GMAC, in harmony with GM, that they will not be wanting any vehicles back at the end of the lease and that they will be offering them at about a third off the Kelly Blue Book value. If that's the case I'm going to buy it. It's a year old, only 4000 miles and no problems so far. Think I'll see how it goes for another two years and what happens in the market, but this sounds like a great deal if it all comes about. From what I hear, it's not just Saturn, but any leased vehicle. The finance companies don't want them back.

mark500 02-17-2009 09:11 PM

Seems like the auto companies are toast. Only a structured bankruptcy will save them. These "loans" are akin to using a ventilator on a brain dead patient. Delays the inevitable.

tsturbo 02-17-2009 09:45 PM

Quote:

Originally Posted by mark500 (Post 785210)
Seems like the auto companies are toast. Only a structured bankruptcy will save them. These "loans" are akin to using a ventilator on a brain dead patient. Delays the inevitable.

Yes, agreed. The government should have never gone down this slippery slope of bailing out anyone. Let them fail. I am so sick of bailout after bailout, no one will bail me out but my tax dollars go to bailout corporate greed and poor products many people do not want to buy. And for all those companies who have outsourced all the jobs out of the US, they should be forced to pay an import tax.

We are in for bad times it seems for a long long time with no end in sight.

Texarkandy 02-18-2009 07:32 AM

The whole bailout thing kind of reminds me of Cleavon Little holding a gun to his own head in Blazing Saddles.

ziggy29 02-18-2009 07:48 AM

Quote:

Originally Posted by Texarkandy (Post 785267)
The whole bailout thing kind of reminds me of Cleavon Little holding a gun to his own head in Blazing Saddles.

That's a pretty good comparison, actually, now that I think about it...

W2R 02-18-2009 07:57 AM

Quote:

Originally Posted by cardude (Post 785169)
Another slow day with no sales. Going home to kick the dog................

Sorry to hear that. Are prices coming down? I guess dealers are caught in the middle and can only lower prices so far.

Since kicking the dog seems to be an unpopular choice, I'd suggest an extra-hard workout at the gym instead. :)

Leonidas 02-18-2009 08:03 AM

The bailouts do seem to be helping everyone who was fiscally irresponsible. It comes down to are we being stupid and helping the wrong people, or are we being smart by keeping them afloat so they don't drag us down with them?
Quote:

Harriet Johnson: Isn't anybody going to help that poor man?

Dr. Sam Johnson: Hush, Harriet! That's a sure way to get him killed!

Bart: [high-pitched voice] Oooh! He'p me, he'p me! Somebody he'p me! He'p me! He'p me! He'p me!
Whatever it is I think it is out of our hands. But I can't help thinking of that old saying that if you can't identify the sucker at the card table it means you're the mark.
Quote:

[Bart places his hand over his own mouth, then drags himself through the door into his office]

Bart: Ooh, baby, you are so talented!

[looks into the camera]

Bart: And they are so *dumb*!

Jeb-NY 02-18-2009 08:21 AM

I knew several people that had Saturns the first few years they were built and loved them. It was almost like they belonged to a cult. Birthday parties for the company and all. One still has his as a second car with a ton of miles on it.

Then they just became another car company.

Jeb

cardude 02-18-2009 08:30 AM

Quote:

Going home to kick the dog................
That was a joke. Sorry. I have a great dog-- a black Lab mix. She is 14 years old and still kicking, or at least walking around. Her name is Daisy.

OAG 02-18-2009 09:19 AM

IMHO this is the biggest "transfer of wealth" this country has ever seen and it seems to be getting worse as time goes by. Seems that the prudent, thrifty, financially sensible, and LBYM in this country are only going to get a larger tax bill and higher prices to pay for all of the idiots that think money "grows on trees"; it does not - it is shipped in from Washington.

Even Mark Haines on CNBC (I know) was really ranting about the latest "housing rescue plan" this morning - IMO he is about the only "smart" guy/gal on that show. The rest just "go with the flow".

cardude 02-18-2009 09:31 AM

Quote:

Even Mark Haines on CNBC (I know) was really ranting about the latest "housing rescue plan" this morning - IMO he is about the only "smart" guy/gal on that show. The rest just "go with the flow".
I heard that on my way into w**k this morning as well. He was really mad about the whole housing relief deal, and I can see his point. I feel like he does. I bought a home recently, and I'm in the process of doing a refi, and now I'm wondering if I can get in on some of that money (especially the principle reduction money). However, my current loan is not in trouble (yet, lol) and I've got a little money so I'm sure I don't qualify.

I really suported the initial emergency GM bailout because I have a vested interest being a GM dealer, but now that I'm almost out of business here at the dealership I'm thinking like a regular consumer/tax payer, and I think it's a stupid idea. The government seems to be digging us (and our kids and grandkids) a big financial hole.

Did anyone hear the Rupublican(!) Senator (can't remember the name) talking yesterday about how we need to start think about nationalizing the banks? How scary is that? Supposedly that's why financials sold off so much. Disclosure-- I own a decent bit of Wells Fargo in my taxable portfolio, and also through my Berkshire holdings.

FinanceDude 02-18-2009 09:52 AM

Quote:

Originally Posted by cardude (Post 785310)
Did anyone hear the Rupublican(!) Senator (can't remember the name) talking yesterday about how we need to start think about nationalizing the banks? How scary is that? Supposedly that's why financials sold off so much. Disclosure-- I own a decent bit of Wells Fargo in my taxable portfolio, and also through my Berkshire holdings.

Don't worry, Warren will get you out of that happens, and/or he'll start lending the Fed money at HIGH interest rates.........;D

ziggy29 02-18-2009 09:54 AM

Quote:

Originally Posted by FinanceDude (Post 785315)
Don't worry, Warren will get you out of that happens, and/or he'll start lending the Fed money at HIGH interest rates.........;D

Maybe, but his own stock seems to be going to zero, so maybe he should be buying it back instead...

Zathras 02-18-2009 09:56 AM

The reasoning is, even though it isn't fair (and this goes for any of the bailouts) that if you can help the economy it helps everyone.
However, that is a big IF. I don't believe the auto bailouts will work, just put off the need for bankruptcy and drain the goverment (e.g. our) pockets.

ziggy29 02-18-2009 09:59 AM

Quote:

Originally Posted by Zathras (Post 785319)
The reasoning is, even though it isn't fair (and this goes for any of the bailouts) that if you can help the economy it helps everyone.
However, that is a big IF. I don't believe the auto bailouts will work, just put off the need for bankruptcy and drain the goverment (e.g. our) pockets.

I think it's all more of the same: continue trying to prop up today's more mature generations by burying their kids and grandkids in an insurmountable mountain of debt. The problem is that I think we've been doing this for 30-40 years -- pretending the "deal" working people were getting was sustainable when it wasn't -- and it's getting harder and harder, and more and more costly, to continue to prevent the house of cards from collapsing and continuing the denial that things have changed and not for the better.

cardude 02-18-2009 10:08 AM

Quote:

Don't worry, Warren will get you out of that happens, and/or he'll start lending the Fed money at HIGH interest rates.........;D
I'm so glad I've got Warren making these hard decisions for me. I really feel like he is setting the shareholders up for quite a few years of nice gains with his latest moves. This is the perfect time for someone like Buffett, who really has a knack of exploiting uncertainty like we have now.

Quote:

Maybe, but his own stock seems to be going to zero, so maybe he should be buying it back instead...
The stock will come back. Come on, Ziggy, drink the Kool Aid with me! Seriously, in 2-5 years we are going to look very smart when the returns from all these recent investments start hitting the income statement and when the derivitives get priced correctly and when some of the struggling operating companies start to recover.. ....Of course, I may be totally wrong and we may all be broke in a few years! :nonono:

FinanceDude 02-18-2009 10:09 AM

Quote:

Originally Posted by ziggy29 (Post 785320)
I think it's all more of the same: continue trying to prop up today's more mature generations by burying their kids and grandkids in an insurmountable mountain of debt. The problem is that I think we've been doing this for 30-40 years -- pretending the "deal" working people were getting was sustainable when it wasn't -- and it's getting harder and harder, and more and more costly, to continue to prevent the house of cards from collapsing and continuing the denial that things have changed and not for the better.

Hopefully we are not headed for a 20 year recession like Japan......:banghead:

cardude 02-18-2009 10:15 AM

Quote:

Hopefully we are not headed for a 20 year recession like Japan......:banghead:
Has anyone back tested the 3-4% SWR idea in an environment like Japan's 20 year recession? Will it work? Are we doomed?


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