Auto Bailout.......

[bluey]

Quote:
Obviously, then, you are not even stopping to really read any of these articles. Just from your first article:

On the margin. The oil industry urges people to look beyond its profits to its profit margin: about 7.6 percent of revenues late last year. That's not much higher than the 5.8 percent profit margin for all U.S. manufacturing, and if you exclude the financially troubled auto industry from that analysis, the oil industry actually appears less profitable than most manufacturers, which were earning 9.2 cents on every dollar of sales.

That is exactly the point I made.

Listen, I really don't want to argue about any of this. I'm just saying that everyone should get all the facts before they start parroting mis-information. This is what I do for a living. It's hard for me to sit silent when people are making subjective claims with no basis in fact.

With oil back down to $50, XOM should be back to making a small profit margin again, so everyone should be happy. As if, XOM set global oil prices.

 

[HennysMom]

I"m not arguing - I'm just saying that your are saying the oil industry isnt making a profit - and they are - BILLIONS.
That is my point.

(extends hand out) shake?

ETA: You do what for a living ? Work for the oil industry??

 

[bluey]

Yes, peace by all means....

I'm a biochemist/epidemiologist/medical researcher that now works in stock research.

I didn't say they are not making a profit, I'm just saying that the profit is relatively smaller by percentage to companies that produce other goods/services, like a Google.

To calculate the profit margin, one needs to take into account the cost of producing the product or service. XOMs costs are quite considerable, hence they make less of a profit margin than other companies. If other companies with less costs, like GOOG in this instance, were as large as XOM, they'd dwarf the profits of XOM.

That's all I'm saying. Everything is relative.

 

[HennysMom]

well - lets bum-rush Bill Gates and Oprah's houses and hold them both hostage...they can bail out all of us and the auto industry to boot!

anyone else with me? LOL

I hear what you're saying and I do understand your view, but I also understand that its a "guestimate" based off of analysts thinking to begin with of where they "think" projections should be - theorhetically speaking

I got the rope...anyone coming?

 

[bluey]

I heard that Nifty's BYC profit margin was 83%

Let's start with him!!!!

 

[HennysMom]

83%?! *grabs the nylon coated rope and a chain*

Thats horrendous!

 

[bluey]

Okay... I might have made that up...but I'm kinda big fan of Oprah, so I wanted to protect her...

 

[ChickenTender63]

I do understand that the oil industries ratio is much lower than most other industries out there, and that their "windfall profits" are made through quantity not by gouging as most people want to believe.

They just happen to have a product that we all MUST have and they have been profitable by doing so. We can't fault them for that. They have to remain profitable in order to remain in business.

My comment earlier wasn't attacking them by any means. I called it "windfall profit" because that is what most people understand the oil profits to be. If I set off an alarm, I apologize.

I was just meaning though, that if the oil industry needs to continue selling gas to maintain profitibility, and the biggest use of gas in this nation is through the use of automobiles, then why not have big oil consider investing in the Big 3 and help them get through this hard time and back on track.

That way the "bailout" still occurs, but not on the taxpayers dime, it's on the shareholders dime. If the shareholders don't like it, they can sell. If the taxpayers don't like it, they can just.....uh.....um....ah........continue to pay the taxes.

I don't know if this makes any sense or not, and I am not one looking for an argument either by any means. I do think it's just a nasty situation no matter what happens.

And for the union guy. I personally do think the unions had a large part of helping the big 3 to where we are today, both good and bad. Years ago, the unions did so many GOOD things for the american worker and this country. But, those days have gone, and the union, in my opinion, has outlived it's usefulness.

I worked for a large company for many years. One that dominates a fair share of it's market. Majority of this company is union run and the other part has been a "team enviroment". The non-union locations tend to outperform the union mills hands down and are cheaper to operate and are the most profitable mills in it's company. Once the company as a whole decided that they could care for their workers, and empower them, they flourished. But, to this day, the ones that are run by the old union blood, are still not operating near what their potential is profit wise because the union forces so many limitations on them.

Years ago I think the unions were needed and did protect us. Now, I feel that they are going to be the death of us.

And remember folks, this is just my opinion. I am not going to argue with anyone over this at all. It is just how I feel, and am not looking to change how you feel about things either.

 

[Buster]

Quote:

 

[Buster]

Bluey and Hennys Mom- You guys are killing me- I'm laughing out loud now at your conversation.