Monday, January 19, 2009

Who is to be blamed for American automobile industry mess?


American auto manufactures are criticized for building gas guzzlers. They built the vehicles with the assumption that the gas prices will hover around $.2.50. Which is the price now and the right price.


But the hedge fund managers fudged the market and raised the prices to unbearable levels, artificially pushing the American manufactures to brink of collapse. Which is followed by the worst economy in decades.


Who's to blame for the Automobile industries mess?


A) Hedge fund managers
B) Economy
C) Themselves


I think the answer is 'A' and 'C' (Americal auto industry is not nimble).

Supposedly home owners

First of all I don't own the home anymore, wait...

For legal purposes, yes I own the home. From equity perspective, house prices have gone down significantly wiping out my down payment. So practically I am not even the part owner and the bank owns it from a common sense perspective.

Sometimes it makes me wonder that the rent is too high for my house :-) and I should find a better place for the rent (I mean mortgage) I pay.

I am at overall loss. Bank makes profit on me and govt pays them to do their job. Sounds weird.