bail outs

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Permalink Reply by Administration on February 9, 2009 at 9:07am

Mike,
It depends on if they have a future! For instance I am not educated in the automobile industry and I don't have an understanding of their balance sheet and I don't understand their R&D and future road map but...

At the 50K level, they don't have much of a chance unless they radically re-engineer themselfs. Understanding the above, all I can see is the automobile industry doing is re-arranging the deck chairs on the Titanic.

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Permalink Reply by Nevets on February 9, 2009 at 5:24pm

Mike, great question and one that is pointedly relevant to each one of us today!

The question I pose - if a company is failing, why is it failing? How can we assume that money will solve the core issues of failure? Without examing and understanding the complexities of these failures, I believe any expenditure will simply prolong the inevitable failure.

The analogy I use is this: If the boat we are in is sinking, we are obviously bailing the water out. If we spend all of our resources continuing to bail water and prevent the boat from sinking, but neglect to actually plug the hole in the boat we will end up with all resources depleted and also a boat that has sunk...

Thoughts???

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Permalink Reply by Administration on February 10, 2009 at 9:37am

Nevets,
They have even named it appropriately "Bail Out" instead of "Plug the Hole".

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Permalink Reply by mike moodie on February 11, 2009 at 7:25pm

makes me of the three stoogies episode when curly drilled holes in the boat to let the water out. I think I see some comparisons here

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Permalink Reply by Administration on February 11, 2009 at 8:04pm

Haaaa! Yes!

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