Author: mariame

Employment in 'grim situation'! [Copy link] 中文

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Post time 2008-11-20 23:52:49 |Display all floors

Cestmoi...

... when the party tries to be mother and father too much, you are going to get this sort of reaction.

Mind you, this is much better than if a "strongman" situation - say Russia - but there is room for improvement.

As it stands, the party will take the lumps, and hopefully learn from them. :)
China's Eccentric 'Uncle Laowai' from Chicago, IL

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Post time 2008-11-21 00:29:05 |Display all floors

TV...

The situation in USofA is looking grim too.

I don't think this lameduck Congress will agree to bail out the automotive industry. I am against bail outs of industries run to the ground by incompetent management and inflexible, militant unions. But if Congress lets GM go, a lot of suppliers will file for Chapter 11 as well. As things stand, if GM files for Chapter 11, it will not end there, it will be broken up into parts, likely along the line of its existing divisions. Unemployment rate in USofA will head for 7+%, along with signs of deflation, USofA will have the worse recession since the Great Depression.

This is going to have a knock-on effect for China. I think the Chinese stimulus may not be enough. Also I have some concern about China managing this stimulus, neither the organizational skill nor the experience is there. We shall see.

I think it is better to let GM go, a hard decision, but in the long run better for the American economy.

Meanwhile, drink green tea.

[ Last edited by cestmoi at 2008-11-21 12:30 AM ]
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Post time 2008-11-21 01:08:23 |Display all floors

Actually...

Originally posted by cestmoi at 11/20/2008 11:29 AM
But if Congress lets GM go, a lot of suppliers will file for Chapter 11 as well. As things stand, if GM files for Chapter 11, it will not end there, it will be broken up into parts, likely along the line of its existing divisions.  


Not a lot of people outside of Detroit know this, but most of the tier 1 to tier 4 suppliers have already shrunk down, filed for bankruptcy restructuring, or have just simply gone out of business.  As for GM filing - the plan will be very simple - dump the pensions and union contracts, sell/lease some nameplates and/or physical assets, and move to right to work states to assemble vehicles.  Most likely the only nameplates to come through will be Chevy and Caddy.  GMC, Pontiac, Buick, Hummer, etc. will go the way of Oldsmobile, Fisher, and Roadmaster.

It was interesting to see what is developing for GMAC - given they want to go the way of a traditional, deposit based bank.  That would given the restructured GM a base to extend car loans - bypassing other banks at this stage.

The sticky point will be the Tech Center in Warren, Michigan.  It is one thing to move the blue collar jobs - it will be more of an issue to move the white collar positions.
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Post time 2008-11-21 01:56:35 |Display all floors

GMAC

Actually it is a good idea at that, instead of bailing out GM, the government could lend money to GMAC for car buyers. Some retailers earn more money from financing than from their retailing activities. Still, I think it would be better for GM to file for Chapter 11, dumping the pension fund is harsh, but UAW has it coming to them. UAW is not flexible enough to adapt to reality, even now, if UAW cooperates with management, they could salvage GM.

That said, there must be some oversight and control of financing arms of companies like GMAC, you don't want to end up with sub-prime borrowers who cannot pay off their cars. I see people here borrowing against their car titles!

I do not support forced unionism, Federal law should prohibit that sort of things. It should not be an issue that a state can decide for itself, populism is one of the worse form of abuse of democracy. Even if GM moves to TX, there is no guarantee that UAW won't be able to influence the state law there.
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Post time 2008-11-21 10:00:07 |Display all floors
Originally posted by mariame at 2008-11-20 16:00
The worsening global economic situation had weighed upon the country's employment since October, with unemployment occurred at some enterprises, especially labor-intensive small and medium-sized on ...

I think the actual unemployment rate is much higher than 4 percent at present with more factories closing down and more migrant workers going back home.
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Post time 2008-11-21 10:02:04 |Display all floors
College students crowd a job fair in Nanjing, east China's Jiangsu province, Thursday, Nov. 20, 2008. Chinese officials warned Thursday that the country faces a "grim" employment outlook as the economy begins to slow. (AP Photo)
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Post time 2008-11-21 10:38:13 |Display all floors
oh!!!!!!!!!!!!!!!!!!!!
Juses Christ!!!!!!!!!  I don't believe that number,4%??bull----!!!!!!

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