I was just reading an interesting story on the AP this AM about the possibility of GM merging / buying out Chrysler. How weird would that be....a Hemi Vette maybe? 
Marty
Marty
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Re: GM to merg with CHRYSLER?
Anything is possible in today's world, I guess. I just hope this doesn't kill my pension along with my health benefits which will be gone on January 1st. I may not be able to afford this crappy ethanol contaminated gas for my Vette anymore.
Stu Fox -
Re: GM to merg with CHRYSLER?
It's a stupid idea...belongs on an "America's Most Boneheaded" show.
Chrysler would get GM's stake in GMAC in return. Cerebus has probably found out by now it's a reely bad time to jump into the car business. This proposal is reminescent of two people that can't swim, clinging to each other as they drown. This plan would be just what the General needs...taking on Chrysler's out-of-sync products, plants and people when they are closing the plants they have.
The General has about a year to turn things around before they run out of cash and credit. During that time there will also be a risky transition to more fuel efficient products such as electric, hybrid, and hydrogen fuel cell all of which requires cash. Their future depends on how well they start making that transition.
The stock went down to $4.00 for a short time Friday...I tried to buy a ton at $4.55 but it didn't execute. Depending on whether they pull off a management miracle, it's either one hell of a time to invest in GM, or it's throwing money down a rathole with "the hand writing on the wall".
My bud, who is a former GM employee, wonders why Warren Buffet doesn't jump in and buy the whole dang thing for $2 billion. Since it was a joke, I didn't followup to confirm how reasonable that was, i.e. how much GM stock is issued.Comment
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Re: GM to merg with CHRYSLER?
The big shock story I heard this morning is there is much concern that our markets have been manipulated by what amounts to "Stock Market Terrorists" - large block traders that buy/sell near COB or b4/after - too late for the market to react in a corrective manner. It is thought to be being done with purpose to upset our economy, and it appears they are doing one heck of a job!!
Now then, who could possibly be doing such a thing and for what purpose, i.e. who would tend to gain?? First, that comes to mind is of course International Terrorists. Second, we must consider Domestic Terrorism and who would gain by that but large money players such as the Warren Buffett's, or major far left political forces, either with their efforts enhanced by a very sympathetic media.
Interesting theory.
Stu foxComment
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Re: GM to merg with CHRYSLER?
STU-
And my wife wonders why I have to go to the little local airport for gas for our Vette!
MartyComment
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Re: GM to merg with CHRYSLER?
I expect that's another conspiracy theory, Stuart.
Greed brings out "market terrorists" every time there is ANY news that is bad. And, if the news is REALLY bad, they really pile on. There is no way that GM is worth as little as $4 a share. Those "market terrorists" are usual, and are "simply supplying liquidity for the markets"...Yeah, right...Liquidity that allows all the wealth to flow from current investers into their pockets.
However, the current situation probably does have a strong international contribution since every Chinaman, Romanian, Russian, and A-rab in the world that has electricity and a lap top can short our markets now...Ain't the internet wonderful?!
But...shorting markets is not Warren Buffet's formula for getting rich. I can't say Warren WOULDN'T short the market, but he didn't become the world's richest man by shorting markets. Warren likes sure bets...the difference between us and Warren is...most of us don't know those "sure bets" when we see them. Implicit in my previous post is the thought that if Warren Buffet isn't pouring capital into GM at his usual favorable terms, then the outcome may be in doubt.
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Re: GM to merg with CHRYSLER?
"However, the current situation probably does have a strong international contribution since every Chinaman, Romanian, Russian, and A-rab in the world that has electricity and a lap top can short our markets now...Ain't the internet wonderful?!"
Perhaps, a short-sighted conclusion, Chuck... If memory serves the Hunt brothers tried this move to corner the silver market back in the eighties and wound up losing billions!
A billion here, a billion there, and pretty soon you're talking REAL money!Comment
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Re: GM to merg with CHRYSLER?
HaHaHa...Let's see...Wasn't it Barry Goldwater that said that?
Barry would be a good choice for president over either of these two morons right now...No Soviets to start a shooting war with, but a no-nonsense, do-the-right-thing, damn-the-torpedoes kind of leader we need.
Dude, want a chill to run up your spine?...Read those analogies of how long a billion dollars lasts at a dollar a second!!!
Unfortunately for them, the Hunt brothers were essentially working alone with no other market forces. They arrogantly miscalculated that they were rich enough to accomplish their objective by themselves. General market shorting is a greedy collabrative action by every trader out there with a solitary goal...getting rich at other people's expense. Right now, the news is on their side...when the wind changes, they'll go long.
Virtually anyone is able to short the market now...it is no longer an small elite crowd. I believe if shorting is not regulated soon, raw greed can/will push the markets and the economy down to the point where it will not recover for years. JMHO.Comment
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Re: GM to merg with CHRYSLER?
MIKE-
Just a pun on Stu's comment about the "crappy ethanol contaminated gas". I believe Av-Gas is ethanol free.
MartyComment
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Re: GM to merg with CHRYSLER?
Marty-----
This possibility has come up previously. I said then and I'll say the same now-----I cannot see what of value to GM could possibly come out of this sort of merger or acquisition. The only thing that Chrysler has that MIGHT have some value to GM is Jeep.
However, the strategy might be to acquire Chrysler and shut down most of it. That would shrink overall automotive production capacity by a substantial amount and tend to support prices and sales potential for "those which remain". The problem is that while that might be of some benefit to GM, it would also benefit the other auto manufacturers, especially Ford, who weren't "putting anything on the table".In Appreciation of John HinckleyComment
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Re: GM to merg with CHRYSLER?
Chuck-----
GM's market capitalization at the current stock price is under 3 billion dollars. That means that some entity COULD, theoretically, buy the whole company for that price. They could even offer twice that amount as a premium to entice shareholders to sell. The value of GM's assets is far greater than that, so, THEORETICALLY, they could make a "killing". The problem is, when you purchase a company this way, you also purchase its debts and liabilities. That's the "fly in the ointment".In Appreciation of John HinckleyComment
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Re: GM to merg with CHRYSLER?
JOE-
I'm wondering if the GM / CHRYSLER deal would happen if it would help GM's Total Units world wide there by pushing Toyota down the ladder. The more compitition out there the better for the public, unless all the companies start going "belly-up". I see no reason either for GM to want Chrysler at least at this point in time. The Jeep portion would be a nice addition to GM but the price would be enormous for just wanting that one line of auto's. Maybe FORD is next, maybe a BOSS 429 Vette is in the future.
MartyComment
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