Quote:
Originally Posted by Brad Mitchell
Ford was expected to trim its workforceby around 12% when the new CEO came in. This is at least partly media spin. Ford is grossly underproductive vs GM on employee count to cars sold by a factor of almost 50%.
Brad
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this is just foresight:
https://www.experian.com/content/dam...18-q1-safm.pdf
as you see there the american boom is based on loans like never before.
the same you can see in real estate as people have been forced to buy a house now before intrest
we all have seen in the 2008 crisis to where that leads to.
when loans are given to people who are already in debt, this leads to payment defaults. payment defaults in turn ensure that those purchased goods go to market cheaply.
that will happen first with the cars and then with the real estate.
every company with foresight will prepare itself for this now.
at the moment there is still a desperate search for workers in the construction sector because there are not enough workers to fulfil the previous construction orders. on the other hand, sales of new houses have already collapsed to such an extent that massive job losses are already foreseeable in the near future.
if you would know that most of your quality competitors would not be able to pay their loans back and you would know that you can buy high quality and quite new second hand servers for a fraction of the new price, you would not order many other new ones.
and that means that there is no need to produce them.
an economy is not healthy when the consumption is financed primarily with loans to private households. A loan is nothing else as to spend the money from the future today.
but what happens when this future comes ?