Outside of the box thinking?

[gonefishie]

There is this thought that have been circulating lately which I c&p. Do ya think it would works? Something tell me that big oil won't go for it. This mess is starting to hit home. My better half's dad employer is closing in 3 months and her step dad employer is shutting down next week.

"Treasury Secretary Hank Paulson should force the auto companies into bankruptcy instead of saving them and then sell them to Exxon Mobil (NYSE: XOM), Conoco Phillips (NYSE: COP), and Chevron Corp (NYSE: CVX).

Despite what anyone thinks about their corporate behavior, keep in mind that they are far better managed, have the resources to develop the companies going forward and now they even have experience dealing with pirates.

If the government could channel Bear Stearns and Washington Mutual into the hands of JPMorgan Chase (NYSE: JPM) and then push Wachovia (NYSE: WB) into the hands of Wells Fargo (NYSE: WFC), why can't they negotiate something that puts in place a high-quality management team and the financial resources from the get-go?


What do we have to lose? This is an idea that may not appeal to a lot of folks but it may actually work! Nobody thinks what is being planned now will work; not those that are for the proposed bailout and not those against it. This would save taxpayers tens of billions of dollars.

What do you think?"

 

[mthieme]

Re: Outside of the box thinking?

I don't know if I agree in whole.
I don't know if government involvement (bail-outs) is the answer.
I do remember a few months back when Washington Mutual - supposedly the biggest private holder of mortgage loans was in trouble and there was prediction of gloom and doom. The day after they didn't get a bail-out, Chase snapped 'em up. Problem solved instantly.
If there's a corporate bargain out to be had out there, another company wil take advantage of the situation.l Could be that you're onto something.
Back a century ago when kerosene was king, one of the oil companies (Getty if memory serves) made Rayo oil lamps...which just happened to be notorious for poor fuel economy - go figure. Matter of fact, they gave them away with the purchase of so much kerosene.
Of course we have federal regulations on minimum fuel economy these days, still not giving an oil company much incentive to improve it. But, it certain opens up possibilities if Exxon were to buy Ford, etc.

 

[JB]

Re: Outside of the box thinking?

At the risk of getting political: There is nothing wrong with the management of the big three or the directions they are going in R&D or product development.

They were caught by the crash in consumer confidence and the credit industry. They didn't cause it. They are victims like you and me.

The big three need to be faster in reacting to market conditions and faster to develop new product and get it to market, but that will be useless unless people are willing to buy vehicles, and they (we) aren't. Exxon, et al, have no idea how to fix it, certainly no better idea than the pros who run the big three.

The seeds of this recession/depression were planted by the Federal Government when they encouraged Fannie and Freddy to lower their standards for mortgage lending and the financing of spec building back in the 90s. Suddenly everyone became a "homeowner". . .too many of homes they couldn't pay for. . .and many new homes couldn't find buyers. Too much supply and too little demand, and about 10 trillion bux of "equity" evaporated. Now the Feds are blaming it on Fannie and Freddy, the big three. . . anyone but the Federal Government. BOOOOO!!

The tipping point was the oil bubble, which scared the dickens out of us. Consumer confidence and consumer buying went into the tank....CRASH!!

I don't "know" how to fix it, but I really doubt that putting another 3 or 4 million workers on the street would.

 

[BoatBuoy]

Re: Outside of the box thinking?

Man, think about that proposal. The oil companies glean their proffit from the sale of petro products. The vehicles are the largest user of petro products. The oil companies would own a large chunk of the vehicle industry. Can you see a conflict here? Can you say 10mpg fleet average? That would certainly be nirvana for any capitalist.

 

[chiefalen]

Re: Outside of the box thinking?

Back when Dodge was in trouble i don't remember them giving the co. money, the govt. just bought nothing but dodge cars and trucks.

I don't think the gov, should be bailing out any of these company's.

Fair market system, supply and demand, the company's that are run well will survive, the ones not, die.

 

[mthieme]

Re: Outside of the box thinking?

Back when Dodge was in trouble i don't remember them giving the co. money, the govt. just bought nothing but dodge cars and trucks.

Now that you mention that...the same thing happened with Dell computers. They were on the edge, next thing you know they're on GSA and presto...top of the heap. Go figure.

 

[kenimpzoom]

Re: Outside of the box thinking?

If you ever worked for an oil company, you would have never think this is a good idea. :wink: They sell a product that sells itself and sets its own price.

The only thing that saves oil companies, is that they are very fast a cutting back when oil prices fall. I could comment on auto companies inability to do that, but then that would turn political.

Ken

 

[SuperNova]

Re: Outside of the box thinking?

At the risk of getting political: There is nothing wrong with the management of the big three or the directions they are going in R&D or product development.

They were caught by the crash in consumer confidence and the credit industry. They didn't cause it. They are victims like you and me.

The big three need to be faster in reacting to market conditions and faster to develop new product and get it to market, but that will be useless unless people are willing to buy vehicles, and they (we) aren't. Exxon, et al, have no idea how to fix it, certainly no better idea than the pros who run the big three.

The seeds of this recession/depression were planted by the Federal Government when they encouraged Fannie and Freddy to lower their standards for mortgage lending and the financing of spec building back in the 90s. Suddenly everyone became a "homeowner". . .too many of homes they couldn't pay for. . .and many new homes couldn't find buyers. Too much supply and too little demand, and about 10 trillion bux of "equity" evaporated. Now the Feds are blaming it on Fannie and Freddy, the big three. . . anyone but the Federal Government. BOOOOO!!

The tipping point was the oil bubble, which scared the dickens out of us. Consumer confidence and consumer buying went into the tank....CRASH!!

I don't "know" how to fix it, but I really doubt that putting another 3 or 4 million workers on the street would.

AMEN!!!! This post should be shouted from the rooftops. JB has spoken the truth once again. Obviously, I couldn't agree more.