Let Detroit Go Bankrupt
20/11/08 12:41 Filed in: Economics
An Opt-Ed article by
Mitt Romney in the NY Times.
http://www.nytimes.com/2008/11/19/opinion/19romney.html
A conversation that the nation should have before any money is put into the auto industry. Change and the pain that comes with pain is normal. Mitt is spot on with his advice. While the final solution might be different from what Mitt is suggesting the full range needs to be considered.
In Europe GM and Ford produce a number of cars that are economical to run and which sell well. Some of that thinking and the ability to lead rather than just follow the short term demand trends is what will be needed. If Toyota, Honda, Nissan and others can produce in the US and stay competitive then the Big Three need to take a serious look in the mirror.
As a real estate investor a major shift in the auto industry will produce opportunities. The rust best is called the rust belt for a reason. The economics of the RE markets there are far different from on the coasts and in the high tech centers. Strategies for RE investors need to adjust to the macro economic environment.
http://www.nytimes.com/2008/11/19/opinion/19romney.html
A conversation that the nation should have before any money is put into the auto industry. Change and the pain that comes with pain is normal. Mitt is spot on with his advice. While the final solution might be different from what Mitt is suggesting the full range needs to be considered.
In Europe GM and Ford produce a number of cars that are economical to run and which sell well. Some of that thinking and the ability to lead rather than just follow the short term demand trends is what will be needed. If Toyota, Honda, Nissan and others can produce in the US and stay competitive then the Big Three need to take a serious look in the mirror.
As a real estate investor a major shift in the auto industry will produce opportunities. The rust best is called the rust belt for a reason. The economics of the RE markets there are far different from on the coasts and in the high tech centers. Strategies for RE investors need to adjust to the macro economic environment.
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