American Economics Thread

Bellum_Romanum

Bellum_Romanum

Brigadier
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Sinnavuuty said:
Part 17:
According to Bank of America, from 2019 to 2024 there was a 10% increase in the number of people living paycheck to paycheck…
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But now the average American thinks it takes an income of just over $270,000 a year to be “financially successful”…
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It is being reported that the Conference Board's index of leading economic indicators has fallen for eight consecutive months...
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Now it has a debt of 36 trillion dollars...
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I thought Joe Biden has done a relatively "great job" on his handling of the U.S. economy? What's up with these reportage that seems to contradict the prevailing wisdom as per the opinions of many economic gurus in the U.S. like the Nobel laureate, Paul Krugman Jr.
 
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Michaelsinodef

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HighGround

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DETROIT (AP) — The poor performance of General Motors’ Chinese joint ventures is forcing the company to write down assets and take a restructuring charge totaling more than $5 billion in the fourth quarter of this year.

The Detroit automaker said in a regulatory filing Wednesday that it will cut the value of its equity stake in the ventures by $2.6 billion to $2.9 billion when it reports its results early next year. In addition, GM will take $2.7 billion worth of restructuring charges, most of it during the fourth quarter.
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HighGround

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Michaelsinodef said:
GM earned like 24 billion over 20 years, with an initial investment under 1 billion.

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Now this -5 billion just makes it be 18-19 billion.
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I don't disagree. This was a very lucrative market for GM, but like all things, it is coming to an end. For more context, 50% of GM's operations are in North America, 30% was China, and 20% is the rest of the world. The China market is very important to GM, but I think they know that they are very unlikely to stay competitive there. A gradual wind-down to its China operations is likely which means North America will be the last market where GM has any significant presence in.

I'm not sure if GM will pull out completely, but they will definitely have to reduce their presence there (China) since it's now a loss-making business.
 
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Michaelsinodef

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HighGround said:
I don't disagree. This was a very lucrative market for GM, but like all things, it is coming to an end. For more context, 50% of GM's operations are in North America, 30% was China, and 20% is the rest of the world. The China market is very important to GM, but I think they know that they are very unlikely to stay competitive there. A gradual wind-down to its China operations is likely which means North America will be the last market where GM has any significant presence in.

I'm not sure if GM will pull out completely, but they will definitely have to reduce their presence there (China) since it's now a loss-making business.
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Oh I fully agree.

Just wanted to add some more context for users here, who might not have known.

(that operations in China for the vast majority foreign companies have been VERY profitable.
Heard a story about a Korean car maker losing money on their car making business, but because they brought a big office building in Beijing very early, can't remember precisely when but maybe before 2010s, so when they sold their stuff to get out of China they ended up making money just due to that office building lol).
 
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HighGround

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Registered Member
Michaelsinodef said:
Oh I fully agree.

Just wanted to add some more context for users here, who might not have known.

(that operations in China for the vast majority foreign companies have been VERY profitable.
Heard a story about a Korean car maker losing money on their car making business, but because they brought a big office building in Beijing very early, can't remember precisely when but maybe before 2010s, so when they sold their stuff to get out of China they ended up making money just due to that office building lol).
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One of my co-workers apparently has a mom who sold her super old multi story buildings in some city and is now a multi millionnaire cuz the property prices got so high.

Gosh-darn. I wish I had a rich mum.
 
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