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> If the prices of those things spike dramatically, Futures contracts have existed for a very long time for exactly this reason. [0] It's up to management to u
by pjmorris 7y ago
> If the prices of those things spike dramatically,
Futures contracts have existed for a very long time for exactly this reason. [0] It's up to management to use them responsibly. For an example from the last crisis, Ford managed to avoid needing a bailout while GM and Chrysler took part in one. Management makes a difference. I'd want to steer out of a situation where management uses government to finance its carelessness.
[0] https://en.wikipedia.org/wiki/Futures_contract https://en.wikipedia.org/wiki/Futures_contract
- vsareto 7y ago>It's up to management to use them responsibly. There's the rub, by mandating a cash reserve, does that necessarily include required futures on critical operating items? Who decides what's critical? What happens if they don't follow those rules? GM and Chrysler are still around. I don't know how well they've done compared to Ford, but until the bailouts stop coming or the laws don't change, there may not be a reason to do this.
- abofh 7y agoPretty sure GM bought Chrysler
- arrosenberg 7y agoFiat bought Chysler.