30% of Auto Suppliers Will Die
With GM and Chrysler bankruptcy it will have a major impact on the auto industry supply chain.
Experts predict 30% up to 40% of the auto suppliers will close it’s business doors.
The giant ripple effect from the bankruptcies is causing financial stress for not just the business owners but all the families of the businesses.
I have a problem with big corporations who have publicly traded stock and are not governed more by the government.
If the banking industry creates standards for home owners referring to debt to income ratios, credit, assets and ability to pay.
Then how come this same banking standard is not applied to corporations with publicly traded stock. See the answer is simple the banks control all the money and corporations that have publicly traded stock should be regulated under the same banking lending standards. To me this is common sense but then you see the fraud that is allowed within the stock market!
How can the CEO’s run a company into bankruptcy if they applied the Banking Industry lending standards?
In my opinion it’s a rigged game the stock market because the end result is a massive transfer of wealth.
When the executives of a company get paid millions and have not strict standards to protect the public stock holders then you should be wise to this game.
They say buy stock when there is blood in the streets and I bet 1 billion dollars the smart money will be buying auto stocks that come out of bankruptcy when the general public panics selling at the absolute bottom.
There is no way GM and Chrysler will not come out of the bankruptcy’s mean and strong.
Mark my words the auto stocks will go up in due time with some patience however the stock market is going back to test the 7900 level in the Dow and if it breaks this level then we will go down hard in the C wave.
Short URL: http://www.askcarexpert.com/?p=425
Posted by blogadmin
on Jun 30 2009. Filed under Car Reviews.
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