Quote:
Originally Posted by Geoff3DMN
It doesn't matter much if one company fails (say Pyramid building society or HIH or OneTell), but if too many fail at the same time we'll end up with a deck of cards situation where otherwise sound companies fall because the support structure has collapsed and the whole economy implodes.
That sort of situation would mean an almost complete collapse as in the great depression. Unemployment rates of 30 to 50%, almost all work that remains being casualized. Job conditions that take no account of regulations. Safety regulations non-existent.
How'd you like 3rd world wages and conditions because that's all the work that's left?
Not a pretty picture and It's not about corporate survival, it's about economic survival.
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Wasn't the last Australian recession something like 8-9 std deviations from the norm (I recall my stats teacher claiming that, but needs to be verified)? So for a catastrophic collapse to occur, it would have be greater than that?
If the car companies all fail at the same time, are you saying that there is a very high correlation with the rest of the western world's industries that it be the catalyst to a complete collapse?
Generally, in free market economies, when companies fail to meet the market's needs, or in this case become deaf to it, other more innovative people/businesses take up the slack. So, when a gorilla like GM falls, that hole will be filled by enterprising people/businesses pretty quickly.
Just thinking out loud here, but in the case of green cars, sure Toyota got the jump on them re the hybrids, but surely the Prius doesn't meet everybody's needs. I've yet to see a one size fits all solution for anything.
There will be a whole bunch of new businesses dedicated to servicing, parts design etc to the green car phenomenon.
Personally, I'm excited. The status quo (mbas with greedy mindsets) has failed, time for a new way of doing things. We are at a juncture. Best try and help to get the pack to change course
