Termyn8or
Posts: 18681
Joined: 11/12/2005
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Lol UN, just got off the head so I WAS full of shit.
I think what Merc said about the insurance industry is true, they are "hurting" a bit but I think they have a different threshold. It has always been a decent profiting venture and to break even is considered a loss of course. In reality there weren't say, a record number of claims, or bad luck involved. The downturn came from investments.
I think the same became of the US automakers, when the costs of supporting retirees bacame more than the cost of the steel to build a new car, not only was it time for a change, it was time for a change maybe thirty years ago. As much as can be said about US automakers not selling what the public wants, they still sold quite a few cars, just look up and down the roads.
It should be a lesson to all of us, when times are good, don't give your money away. You see I didn't get this name for nuthing, and if I was head to head with the UAW I would tell them straight out, I'll pay your guys good every day they give me a day's work. When you want them paid anytime else, YOU take care of it. At that point we would most likely have the UAW asking for a bailout, not GM. More than the fucking steel ! did you get that part ? How can any business survive a load like that ?
But just like GM didn't have a bad fire that burned up their slush fund, the insurance companies didn't get hit with a multitude of claims. In each case it seems that these entities were taking to making money out of paper, and that was the problem. The secondary cause of failure was of course the unemployment and subsequent under employment on a large scale. Other than that, there was no instant enigma that sent the big three's sales down the tubes.
What gets me is that among all these supposedly bright people who rule us, educated in fine institutions and supposedly groomed for success, none of them saw this coming. Those who warned of these happening which did actually come to pass were written off as crackpots and heretics. But they were right. Everyone in the mainstream held fast to the notion that "everything will be fine". That is unless there was some less than scrupulous "cooperation" going on.
Now my customers are having a problem paying me, where is my bailout ?
But not to worry, I don't think anyone will be left out. As disposable income decreases and the bottom line heads for the roof noone will be immune. No matter what, it is coming to you. It might take a bit of time to get there, but it is still on it's way, of that there is no doubt.
Even food. Watch Americans tighten their belts a bit and just stop wasting food and it will have a negative impact on the industry. ANY industry. Currently I spend ten bucks a day on cigarettes, but there are companies out there that sell those machines, tubes and tobacco and they make a product just as good as "store boughten". How long will it be until I make the switch and decrease my own personal overhead by about eight dollars a day ? That's about three grand a year, what happens when a thousand people do it ? More, ten thousand.
Reaganomics was, in essence correct. It just didn't happen to realize that when times are good, the trickle is kept quite contained, and when times are bad the trickle is like a torrential downpour. Just another one of our "leaders", and even though I liked Reagan, I think I could've done a better job. I think half of the people on this board could have done a better job, as well as could do a better job than Obama. But that is not how people are chosen for positions of power and responsibility.
If I were President a couple years ago, I of course would have had competent people around me. Once they told me that we were headed for this crash I would order a stop to it. I would get legislation drafted and if that didn't work I would get it done via executive order. There would have been no crash, and I would also take steps to reverse the trend towards self destruction as well. But you all didn't vote for me :-(
This is long enough, more later.
T
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RE: Who DOESN'T need a bailout ? - 
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