[Marxism] When "companies to big to fail" go bankrupt
rrubinelli at earthlink.net
Sun Mar 20 13:46:51 MST 2005
Not really new news. Well known for the past 5-10 years, that the
entire industry has minimal 30% excess capacity; that for the past
couple of years any earnings GM has recorded are pretty much the work
of GMAC, its financial arm; past 18 months have seen loads of stories
about GM, as more a health care company than an auto producer; and the
past couple of months about Moody's, S$P, considering lowering its
credit rating to near-junk and junk status, which is a real problem for
its CFO (pay higher interests on everything to overnight paper to long
term bonds), comptroller (hey! who stole my cash flow?), and pension
officers (since they might be prohibited in investing pension funds in
GM's own paper).
Ford's not doing a whole lot better, although its fixed asset costs and
pension requirements are less. DaimlerBenz? Not healthy either. Fiat?
That was a close one for GM as it was almost forced to buy the bankrupt
VW has closed whole factories in Brazil, etc.
Whole industry suffer from massive overproduction.
----- Original Message -----
From: "Doug Smiley" <dougsmiley at sbcglobal.net>
To: "Activists and scholars in Marxist tradition"
<marxism at lists.econ.utah.edu>
Sent: Sunday, March 20, 2005 3:25 PM
Subject: [Marxism] When "companies to big to fail" go bankrupt
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