3 3
brenthutch

Green new deal equals magical thinking

Recommended Posts

Just now, brenthutch said:

As a consumer, oil and gas have never looked better.  So much for "peak oil" LOL.

You have been very quiet about the proposed subsidizing of the oil and gas industry. What if they cannot sustain themselves on that free market?

Share this post


Link to post
Share on other sites
2 minutes ago, SkyDekker said:

You have been very quiet about the proposed subsidizing of the oil and gas industry. What if they cannot sustain themselves on that free market?

Then let them fail, just like we should have let the banks fail and just like we should have let GM and Fiat Chrysler fail.  Their assets just don't disappear, they will get sold off and a new set of folks will take over, hopefully having learned the lessons of the past.  I am more worried about the moral hazard of bailing out failing companies.  After all you get what you pay for.

BTW with gas under $1.20 a gallon it is going to be hard to justify the premium for an EV.

Share this post


Link to post
Share on other sites
12 minutes ago, SkyDekker said:

You have been very quiet about the proposed subsidizing of the oil and gas industry. What if they cannot sustain themselves on that free market?

Do you mean the billions upon billions that banks and investors have poured into the industry in the last decade. For which they have nothing to show for it now?

Or the billions upon billions that trump wants to pour into it now?

Share this post


Link to post
Share on other sites
Just now, brenthutch said:

Non sequitur.

Did you have a chance to check out that Earth Day piece?

Of course it follows logically. One of the reasons used to justify the bail out of the financial industry was that it would be too devastating for the country. One of the reasons lots of bailout money is flowing now is to support the country. Currently people are arguing that people will just have to die to bailout the economy and therefor the country.

It is not a non sequitur it all, it flows very logically. Even if you don't want to answer it.

Share this post


Link to post
Share on other sites

I thought you meant other countries.  I'm not sure how I feel about the bailout.  It wasn't bad management or market forces that put us into this mess, so the moral hazard question is off the table. In that regard it is a non sequitur.  Did you watch the video?  Or do you not want to answer that?

Share this post


Link to post
Share on other sites
(edited)
23 minutes ago, brenthutch said:

It wasn't bad management or market forces that put us into this mess, so the moral hazard question is off the table.

Not bad management? Not being to survive a downturn is definitely bad management, at a corporate level and at a personal level. And a pandemic is the ultimate market force, can't be regulated.

How is people lining up in millions of dollars worth of cars for free food at a food bank after very recent unemployment not bad management at multiple levels?

Edited by SkyDekker

Share this post


Link to post
Share on other sites
10 minutes ago, brenthutch said:

Then let them fail, just like we should have let the banks fail and just like we should have let GM and Fiat Chrysler fail.  Their assets just don't disappear, they will get sold off and a new set of folks will take over, hopefully having learned the lessons of the past.  I am more worried about the moral hazard of bailing out failing companies.  After all you get what you pay for.

BTW with gas under $1.20 a gallon it is going to be hard to justify the premium for an EV.

As if they'll simply get snapped up by another US owner.  Hard to have US economic power without US owned businesses.

Share this post


Link to post
Share on other sites
11 minutes ago, SkyDekker said:

Not bad management? Not being to survive a downturn is definitely bad management, at a corporate level and at a personal level. And a pandemic is the ultimate market force, can't be regulated.

A once in a century pandemic?  Really, that is like blaming a recession caused by an asteroid strike on bad management.  After all they have happened in the past and scientists tell us they will occur in the future.  Just how is a restaurant to manage, when the government shuts it down?

Share this post


Link to post
Share on other sites
Just now, brenthutch said:

A once in a century pandemic?  Really, that is like blaming a recession caused by an asteroid strike on bad management.  After all they have happened in the past and scientists tell us they will occur in the future.  Just how is a restaurant to manage, when the government shuts it down?

You don't plan for a single cause, you do plan for being able to cope with downturns. Just like people should have emergency funds, so should companies. A restaurant unable to pay rent after being shut down for a week has been poorly managed (assuming they are not in the first year of their lifecycle).

People sitting in a new Cadillac waiting for free food at a food bank after being unemployed for a week have poorly managed themselves.

So, should those people and companies be bailed out? Should the country be bailed out?

Share this post


Link to post
Share on other sites

 

29 minutes ago, SkyDekker said:

You don't plan for a single cause, you do plan for being able to cope with downturns. Just like people should have emergency funds, so should companies. A restaurant unable to pay rent after being shut down for a week has been poorly managed (assuming they are not in the first year of their lifecycle).

People sitting in a new Cadillac waiting for free food at a food bank after being unemployed for a week have poorly managed themselves.

What about a restaurant that has been closed for two months?

As far as the food bank people are concerned;  poor folks have poor ways.

Share this post


Link to post
Share on other sites
9 minutes ago, brenthutch said:

poor folks have poor ways.

Poor folks don't own cars. if 10,000 cars line up for free food, it isn't 10,000 poor people.

 

10 minutes ago, brenthutch said:

What about a restaurant that has been closed for two months?

Emergency Funds should last 3 to 6 months. Debt funded emergency kicks in after that. If you have an established business that cannot cover fixed costs for at least 3 months, you are generally poorly managed. Same goes for people.

Share this post


Link to post
Share on other sites
5 minutes ago, SkyDekker said:

Poor folks don't own cars. if 10,000 cars line up for free food, it isn't 10,000 poor people.

 

Emergency Funds should last 3 to 6 months. Debt funded emergency kicks in after that. If you have an established business that cannot cover fixed costs for at least 3 months, you are generally poorly managed. Same goes for people.

I'd be curious to learn how many small restaurants you have started up, and how many you own.

Restaurants are one of my main clients. 

Share this post


Link to post
Share on other sites
Just now, turtlespeed said:

I'd be curious to learn how many small restaurants you have started up, and how many you own.

Restaurants are one of my main clients. 

20 Plus years on the landlord side. Relationships with ownership groups and owners of all the top restaurant chains in Canada. Daily conversations with them in the last month regarding their businesses. Monthly conversations with them in the last 15 or so years.

I have helped finance them, have done countless of DD procedures on them, acquired them and disposed of them.

You?

Share this post


Link to post
Share on other sites
5 minutes ago, SkyDekker said:

20 Plus years on the landlord side. Relationships with ownership groups and owners of all the top restaurant chains in Canada. Daily conversations with them in the last month regarding their businesses. Monthly conversations with them in the last 15 or so years.

I have helped finance them, have done countless of DD procedures on them, acquired them and disposed of them.

You?

3 startups personally - all small Mom and Pop restaurants.

There was no way that any of the startups had 3 months complete operating budget, especially after they did the month of training, including all the waste and shrinkage.

I have been dealing with the construction costs for 25 years. 

Share this post


Link to post
Share on other sites
Guest
This topic is now closed to further replies.
3 3