Tuesday, February 17, 2009

General Motors seeks US$30b to avoid failure.

Have the Governments of the world forgotten how economics works?

If you can't sell enough product to survive then you have no right to be here. What the Governments of the world are doing is allowing business to believe they have rights outside of operating in a market. OK, there is an economic downturn. But ask yourself why? I'm not going to answer that but what I will say is this.

The post-war project of endless economic growth and the resultant suburban dream is over. We won't be resuming revolving credit anytime soon. The growth cycle is over. And I'm not talking about the supposed 7 year residential property cycle. I'm talking the industrial/information age in its current disguise, is over.

Ok, lets assume the US Govt prop up General Motors with a $30b bail out. Then what? Who's buying cars?

Remember how much oil was per barrel before this fiasco all started? I'll ask again, what do you think caused this "economic collapse" in the first place.