Comments on: Beijing Hearts Benz: China Might Buy A Chunk Of Daimler

By: windswords

windswords — Tue, 21 Apr 2009 00:13:59 +0000

“Perhaps they will take another run at acquiring another company or else diversify away from automotive.”

Oh great. Now Daimler can rape and pillage another company. I hope the Chinese just buy them.

By: nudave

nudave — Mon, 20 Apr 2009 22:10:21 +0000

Somehow I don’t find this any more peculiar than the pop-up banner ads on TTAC for “Asian Girls for Love & Marriage.”

By: slateslate

slateslate — Mon, 20 Apr 2009 20:49:58 +0000

lol….almost every big investment that sovereign wealth/public pension funds have made lately has turned into a dud.

Singapore w/ Merrill
CALPers w/ SoCal residential real estate
Dubai w/ AMD & CityCentre Las Vegas
Ontario Teachers Fund w/Bell Canada and emerging market investments,

etc. etc. etc.

basically it sounds like the boys at Stuttgart are not optimistic about future lux. car demand…..on the other hand….

the boys at Stuttgart are afraid of losing more ground to Audi….so the easiest way to guarantee success in China is to have the umpire/scorekeeper/groundskeeper (e.g. the Chinese gov’t) as a shareholder.

By: Luther

Luther — Mon, 20 Apr 2009 20:18:22 +0000

“Daimler is negotiating with the Chinese sovereign wealth fund”

Will the Chinese government destroy the other auto companies to get a better ROI? It is really a bad idea to have a legal mafia “investing” in the productive economy…If you are a consumer.

“Europe has started to welcome investments” without attaching conditions, China Investment Corp’s Chairman Lou Jiwei”

Imagine this coming from the mouth of a “Communist” chinese…LOL!

By: Pch101

Pch101 — Mon, 20 Apr 2009 20:13:51 +0000

Does this sound like a healthy company? Going around the globe asking for money?

It sounds like a company that’s ready to expand or else go on a shopping trip.

Daimler’s cash position is pretty good. It doesn’t need cash to support current operations. My guess is that Daimler wants cash so that it can spread it around.

Daimler has the same problem now that it had prior to buying Chrysler — it needs to get bigger, or else risk being gobbled up by somebody else. To prevent that, they need to either cloud their balance sheet (the poison pill approach) or else become too big to acquire. Buying more businesses would put them into the latter camp. Perhaps they will take another run at acquiring another company or else diversify away from automotive.

By: Cammy Corrigan

Cammy Corrigan — Mon, 20 Apr 2009 19:51:35 +0000

Am I going mad or are Daimler trying to sell the us the idea that the Chinese buying into Daimler is a good thing? Does this sound like a healthy company? Going around the globe asking for money?

As for economic doom and gloom, the fall of GM and Chrysler will kick start a period of major recession in the US. Jobs lost from their collapse and supplier fallout will be the starting point. In the UK, 2009 is going to be a lost year with recovery forecasted for 2010. Europe aren’t faring much better. The US is going to lose a big chunk of its manufacturing industry, have a devalued currency and be in debt to many people (China, Japan and the UK, being the biggest).

Strap yourselves in people, the party has just begun…..

By: jpcavanaugh

jpcavanaugh — Mon, 20 Apr 2009 19:14:31 +0000

Menno, your monetary observations are spot-on. While I’m not sure the Beck graph gives adequate weight to economic growth which soaked up quite a bit of the money growth from the mid 80s to the mid 00s, it is undeniable that the supply of dollars is being seriously juiced right now. The bad part is that governments have an abysmal record of knowing when to get off the money accellerator pedal, because by the time the economy starts to show the effects, it is too late. The WSJ reports today that the monetary braniacs are aiming at 2% long term inflation. It will be way, way over that before they know it. Lock in those mortgage rates, everybody and wait for asia to own a lot more than part of Daimler Benz before this is over.

By: menno

menno — Mon, 20 Apr 2009 18:46:39 +0000

Sorry, I can’t edit and I forgot to add the link:

http://www.youtube.com/watch?v=dlHBYQrCnIk&eurl=http%3A%2F%2Fvideo%2Egoogle%2Ecom%2Fvideosearch%3Fq%3Dglen%2Bbeck%2Bhyperinflation%26hl%3Den%26emb%3D0%26aq%3D0%26oq%3Dglen%2Bbeck%2Bhyper&feature=player_embedded

By: menno

menno — Mon, 20 Apr 2009 18:46:10 +0000

Look for the Chinese to buy anything tangible with the $1.95 trillion in an effort to off-load it onto the next ‘greater fool’.

Getting rid of dollars is smart. Look at what is coming down the pike (i.e. inflation):

Turn the graph upside down to realize the ACTUAL VALUE of the dollars in everyone’s pocket/bank account/foreign currency reserves.

Once the rest of the countries catch on to what China is doing, they’ll join in and start bidding up the prices of tangibles.

Watch Gold, Silver, Paladium, Platinum, Rhodium and – Copper.