Banking Industry vs. Auto Industry
11-15-2008, 04:30 AM
#16
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Join Date: Mar 2005
Location: Melbourne, Australia
Posts: 3,123
The other reason why the banks should not be bailed out IMO is the notion that there will always be another bank to buy them out. A big fish swallowing a smaller fish, if you will. It's not like the business model is far different for the different financial entities. It's just money, stocks and markets...
11-15-2008, 10:12 AM
#17
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Join Date: Jul 2001
Location: FL/MI
Posts: 1,808
Well, that's not necessarily the case. Tons of regular middle class folks made money "flipping" their house, or using their increased property values to finance their lifestyles, including buying expensive automobiles.
I agree there was an enormous amount of political cowardice here. But if you asked the average joe in 2005, the housing bubble was the greatest thing ever. And realistically what politician was going to put the brakes on that?
I agree there was an enormous amount of political cowardice here. But if you asked the average joe in 2005, the housing bubble was the greatest thing ever. And realistically what politician was going to put the brakes on that?
11-19-2008, 04:36 PM
#20
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Join Date: Jul 2001
Location: FL/MI
Posts: 1,808
Suppiers to the auto industry run the gammut of size and financial strength.
All have a monthly financial nut to crack, and a workforce to keep.
In the auto business you can find a good deal of folks who have the business in their blood. You can ride a razor edged risk to own your own business.
I think that most suppliers play the business on very thin margins. Thick enough to stay alive, too thin to extend credit beyond a tight schedule, and priced with the sharpest of pencils. There isn't room to lose a client.
As with some regular folks that live their lives here, all is well, albeit it stressful... but if things go bad for more than a month or two... it's dire.
11-19-2008, 05:01 PM
#21
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Join Date: Jun 2002
Location: O-Town
Posts: 1,817
I am not that well versed to make a definative comment. So I'll give my best opinion.
Suppiers to the auto industry run the gammut of size and financial strength.
All have a monthly financial nut to crack, and a workforce to keep.
In the auto business you can find a good deal of folks who have the business in their blood. You can ride a razor edged risk to own your own business.
I think that most suppliers play the business on very thin margins. Thick enough to stay alive, too thin to extend credit beyond a tight schedule, and priced with the sharpest of pencils. There isn't room to lose a client.
As with some regular folks that live their lives here, all is well, albeit it stressful... but if things go bad for more than a month or two... it's dire.
Suppiers to the auto industry run the gammut of size and financial strength.
All have a monthly financial nut to crack, and a workforce to keep.
In the auto business you can find a good deal of folks who have the business in their blood. You can ride a razor edged risk to own your own business.
I think that most suppliers play the business on very thin margins. Thick enough to stay alive, too thin to extend credit beyond a tight schedule, and priced with the sharpest of pencils. There isn't room to lose a client.
As with some regular folks that live their lives here, all is well, albeit it stressful... but if things go bad for more than a month or two... it's dire.
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