Auto Bailout.......

[spatcher]

First...I think bailouts are a sin! Second item for people to think about is if the bailout is approved. Will they need more the next time?
If they are bailed out and then fail, will the Big3 vehicle you just bought lose its warranty? And here is another thing to think about...I had previously bought a new 03 Silverado that included an extended warranty covered by API (Automotive Professionals Inc) bought through my Chevy Dealer. When I turned the Chev in on a Nissan Titan, I submitted the paperwork for a refund of the remaining portion of the warranty (should have been about a thousand dollars). I was informed that API had filed for bankruptcy and would have to wait to see how that went. Two months ago I received a check for 200.00 from the Chevy Dealer which was their portion of the profit from the warranty. What I am saying is that even if you are willing to take the chance on the Big3 making it with the bailout, dont think you can be totally safe by buying your warranty elsewhere. Things didnt go all that well for me!

 

[wendy]

You make good sense Mikeksfarmer

Spathcher, I never buy extended warranty or the ins. they offer if you loose your job. Got burned once in my early 20's with that mess! What a joke!

 

[bluey]

Quote:
One popular argument is that evil oil companies are destroying our economy and taking advantage of us all. Usually Exxon-Mobil (XOM) is cited as the biggest offender, raking in windfall profits and bilking us out of millions of dollars!

Did you ever think to wonder who owns Exxon-Mobil (XOM)?

Some consortium of oil barons who sit on OPEC boards? Darth Vader himself? Exxon is a publicly traded company.

Obviously, since the government doesn't spend enough money, a windfall tax on XOM makes perfect sense. The government can "steal" that money from the rich and spread it around to the rest of us or spend it on things we need, right?

No...pretty much the American public owns XOM.

51% of XOM is owned by institutional mutual funds that pretty much every American owns in their 401Ks and individual retirement accounts. The other 49% is held by investors that hold individual shares of XOM in brokerage accounts.

Exxon executives and insiders cumulatively own closer to 0% of the company than 1%. No one individual investor owns greater than .02% of the company.

The largest institutuional owners include noted mutual funds Vanguard and such and also various ETF's and Spyders that are popular investment vehicles for retirement accounts.

If you look at a chart of XOM, you see that investors get a very modest 2.1% cash dividend ($1.60 per year for each share) and the stock price movement is very boring when compared to something like Google. For many years, the stock didn't move at all until it's recent swing up and now it's falling back down. Let's face it, nobody is making a fortune recommending a very boring XOM stock.

So, who is the evil oil company? We are....

Us, who have bought mutual funds/spyders/ETFs to save for our retirement over the years. If you look in your portfolio, I can almost guarantee that you own some XOM somewhere. Lots of pension funds own plenty of XOM as well.

So then, who exactly will benefit from the XOM stock price finally moving from $50 to $90 (it's currently at $73) after not really budging for years. Do us investors get it?

Not if government has it's way with windfall taxes on these companies.

Government will try to steal our money and use a clever ruse to "blame evil oil companies". Oh, it sounds good as we fill our gas tanks with $4 gasoline.

But lo and behold we look into the abyss and realize that the abyss is us...

Oil companies have small profit margins at 10% or less. Google has a profit margin near 30%. But government doesn't consider enacting windfall taxes on them.

Government thinks we are too stupid to realize this.

Are we?

 

[spatcher]

Oblio had a good post on oil company profits. If you can find it, read it!

 

[Ladyhawke1]

"The law doth punish man or woman
That steals the goose from off the common,
But lets the greater felon loose
That steals the common from the goose." - Author unknown.

 

[HennysMom]

Okay, I'll buy that we "buy into" the oil industry - but... what choice do we have in that capacity? Thats like saying "dont buy anything that has hydrogenated oils" in it! Ya ever looked at food labels? Nearly impossible to do!

Oil companies = big $$ = big profits. 10% or less?! I dont believe that for one iota of a second...

and I dont have a portfolio - cant afford one due to the economy.

Ladyhawke1: are you ever going to actually add anything that actually has to do with anything realistically into a conversation on your own behalf or are you just going to quote what others in history have said/anon that have nothing to do with anything on topic point?

 

[whitechicken]

Auto bail out:
Pick one let the others fail.(they all look alike anyway)each new car will come with you choice of stick on decal. People who do not drive american soley on status reasons,are part of the problem. IM not into status I need reliability. I have seen plenty of imports you cant get parts for or have to wait on. Most people who hate unions have never been in one or had their job depend on . As for undereducated people belonging to unions I know several people who were teachers,policemen etc who have joined unions for the better met needs of life. You cant break the unions, Yes some of them are over self important. But consider what would life would be like without them. Read your history on this. We would all still be serfs and beholden to the company store. I do not believe its the unions that are parking oil rigs,probaly a little higher up. All this is is due to the fact that our goverment let in all those cheap cars,tvs,radios etc. without a one for one trade agreement. Once again it was the unions that fought for the worker trying to save jobs and make a better life for our workforce. Its fine for those of you who dont support sindustries but when we all stop smoking and drinking. where then are you local goverments going to get their tax dollars ? I wont smoke in you house, but please stay out of my bar. Its all a nasty circle. Bail them out ,we know it wont work anyway, either choice is just as bad in the long run without fixing the cause. Sorry got upon a feed crate rant there. Unions its either what they did for you or did not due. Its all about the benny franklins (lol)

 

[omelette'smom]

lET ME JUST ADD "LIMP NOODLE DEMOCRATIC CONGRESS". YOU LEFT OUT THAT WORD!! As for Obama's cabinet choice, he's pretty much selected Slick Willy's flunkies who have started this spiral way back when so I don't see much chance of any way of avoiding us 100 percent (sorry 10 percent texas joe) taxpayers from diving deeper to bail someone out. Sorry but my TAKE HOME PAY is nowhere near $30 an hour after health insurance and etc and I'm supposed to dish out more! I've been told when plants close etc that these employees continue to get paid 4 years after due to union contracts. unions built us, they got greedy, now they are the biggest legal thieves other than politicians who have those kickbacks...ie-our future president! Who's up for building an island and each having a few acres and be on you own-don't ask me for a thing and I'll leave you be also! Good neighbor policy-barter, trade, socialize and say adios and God speed!

 

[bluey]

Oil companies = big $$ = big profits. 10% or less?! I dont believe that for one iota of a second...

Do you have any idea the type of infrastructure and exploration required to produce a barrel of oil? Many of us believe it just magically appears at a convenient location to buy with not an iota of thought of the cost involved. When oil prices were $20 per barrel, the oil companies made next to nothing, maybe a profit margin of a few percent...tops.

People really need to get a better grip on how this world really operates. It's not really that hard to understand...it just takes a little "boring" reading. With everyone on the internet these days, there is no excuse for being misinformed.

XOM profit margin 10.57%: http://finance.yahoo.com/q/ks?s=XOM

GOOG profit margin 24.14%: http://finance.yahoo.com/q/ks?s=GOOG

The SEC requires very stringent reporting on financial numbers in the US. This information is readily available to anyone at anytime.​

 

[HennysMom]

http://www.usnews.com/articles/business/economy/2008/02/01/exxons-profits-measuring-a-record-windfall.html

http://money.cnn.com/2008/07/31/news/companies/exxon_profits/index.htm?eref=aol

http://www.exxonmobil.com/Corporate/Files/news_release_earnings3q08.pdf

http://wonkroom.thinkprogress.org/2008/10/30/exxon-profits-250/

(oh - and please dont comment on the republican notations on the last thread... I pulled it moreso for the actual title than anything below it)

pot - meet kettle

and ...I am soooooooooooo not "misinformed"