Thread: Auto bailout
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Old 12-05-2008, 11:23 AM
Snapper Head
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Default Re: Auto bailout

ESSRTEE8 - 12/5/2008 8:51 AM

Does anyone think that if they go bankrupt and don't pay their suppliers, that the suppliers will survive too?

I do.

Bankruptcy does not necessarily mean going out of business. It might, but not necessarily. Vehicles will be purchased, which means that they will be built, which means that there will be a need for suppliers.

Unit support = unit support; whether it is Fords; Chevy's; Toyota's; whatever. So many units will be built, bought, and sold. If the big 3 are not around to build them, everyone else will. The demand for parts will not change. It will on a very temporary basis, but not long term. A certain number of vehicles will be built in the next 12 months; whether or not the big 3 are around.

The big 3 will be around, at least one, possibly two, if the bailout does not come through (it will). Someone will buy the companies or wait and buy the assets and start up "Snapper Head Motors". Despite what the U.A.W. would like folks to believe, we are a Capitalist society and that dynamic does work.

It may be raining like hell, but the sky is not falling.

Big Al