Off Topic Bullsh*t Thread Volume XXIV

[Peelz]

that's pretty good aaron 

[Krandall]

1968   NBC outraged football fans by cutting away from the final minutes of a game to air a TV special, "Heidi," on schedule.

[Krandall]

2008   Big Three automakers pleaded with Congress for a $25 billion lifeline, warning of a national economic catastrophe should they collapse.


shoulda let them sink.

[dragonz]

2008   Big Three automakers pleaded with Congress for a $25 billion lifeline, warning of a national economic catastrophe should they collapse.


shoulda let them sink.

& the bankers with them.
At least the car manufacturers actually make something!

[Krandall]

everything is so messed up here............

[Colorado700R]

Only 2 asked for and received a bail out. Ford did not want one. GM had repaid its bailout $$$ with intrest I believe

[Krandall]

scenario. the local hardware store went out of business. How come the government isn't giving them cash?

Its a business. If you run your business to the ground, you shouldn't be allowed a respawn.

[Spartan]

It's a local business...not a national one with MULTIPLE "stores" in pretty much every state, vs just your corner mom and pop store employing 10 people. Would've lost a lot of jobs too

[Colorado700R]

I don't disagree with that mentality, but a hardware store going under doesn't have the same national impact as a corporate entity that employes 100k+ people, and possibly keeps another 500k in jobs via supplier companies, dealerships, etc..

[Krandall]

I know it's not a good analogy, but it's the principle.

what happened to a company cutting back on budget?

[Colorado700R]

Unfortunately, material and labor cost rarely go back down. To up sales, the big three had to up their product quality and hicld new vehicles that people want to drive.So effectively, to make more $$$, they had to spend more money.  So far they are all doing better, and making better cars than ever before.

[Krandall]

werd.

I get it, so, they were using the gov't as a bank (loan).. Everything I read was "Handout".. Just think if they said "loan" instead...  A lot of people would have been more comfortable w/ the whole thing.

[Colorado700R]

IMO, There is also has been a severe finacial model error in use by major companies as well.  Publically traded compaines have and still do in some cases provide an over optimistic 5 year outlook.  No CEO or CFO in they're right mind would ever broadcast that they forecast a significant loss. If they did, they might as well get in line at the unemployment office.  Instead they forcast net gains with mitigation plans for the forseen losses.  In many cases these mitigations are not sufficent or successful.  Now, once a plan is published, any labor negotiations will take the forcast net gain into account and use the data as leverage for wage increases, better benefits, etc. Then, once that plan starts to fail the companies have trapped themselves with lowering stock values and higher costs due to the negotiations based on their forecast.

Allot is made of short term quarterly forecasts, and allot of emotionally driven stock value changes result from them.  However, quarterly reports can be very misleading becuase of how data is presented (IE GM has sold thousands of vehicles to rental car companies at below cost rates to boost their sales numbers. Only to buy these vehicles back from the renatal car companies at a severe loss after the report was published)  Unfortunately, these kind of things are not uncommon and capatilize on the emotion of the market, but in the end hurt the company, the stock holders and employees.  Becuase of this, when I invest I try and find the compaines long term plans and goals, then use to the quartly reports of the company, and their suppliers to see if A. The major suppliers are seeing gains along with the company (If not, there's BS afoot IMO). And B. If the company's quarterly report is on track to achieve the long term goals.

I think one positive of the recession will be more viable finacial models will be created to more accurately prodict futures, and hopefully the companies will learn how to effectively communicate those futures good or bad, and perhaps more importantly, create more proactive triggers to identify realtime short comings and effective mitigations.

[Peelz]

scenario. the local hardware store went out of business. How come the government isn't giving them cash?

Its a business. If you run your business to the ground, you shouldn't be allowed a respawn.

LOL a respawn. Imma try that at work. Headed out to call the management a bunch o' dirtbags.

[Krandall]

Financial forecasts are one thing, but that's why companies exist like credit rating agencies. Who actually analyze the numbers and give credibility or the latter to said company. It's up to them to rate the company based on gains, what cash liquidity they have, as well as what they have out in force as a product.

Someone dropped the ball it seems.