Mohacsy's Safe Portfolio Member Forum

[elena_murooni]

It's no fable; it's real....

Take LVS or Bethlehem Steel: A myriad of more efficient companies dotted the landscape while these two bohemoths of days past attempted to intimidate perception of their (sic) continued value to our country.

If we let them die, then the more efficient companies could blossom, increase volume, and provide product at market price.

If we let them live, then (with government subsidy or bankruptcy forgiveness), these inefficient companies would continue to hoard market share. They would compete against the lean, hungry, and efficient companies which they would continue to hold at bay. They would be able to sell product at the price of the efficient newbies.

Well now, it appears that we went with the second option and.. for a time... false hope & ultimate futility ran hand-in-hand. They both are gone now; the lean & more profitable companies have been able to step up to the plate... and all of this over the past decade +.

What could possibly be different in the car industry? The outcome. If there is enough support for Chrysler/GM, and that support gives them a lifeline in 'time' to convert to the efficiencies of competitors, then the competitors would bite the dust. It's not a fable... Murphy's law...