Feb

24

With nations across the globe rushing in to support their ailing car industries I've been wondering where's it's all going to end. With the industry as a whole producing a huge oversupply, the cash bleed to support these industries doesn't seem like it's going to improve until some of the players start to 'fold'.

So who's going to win? In this case the cards may be secondary to just holding the most chips. Just keep raising until enough of the other guys cave in.

So what strategies should governments adopt? If you start with a small pile of chips it's probably best to fold quickly. And as soon as the oversupply has evaporated you end up with holding a profitable business.

Alternatives? What about mothballing your car plants until the rest of the world has exhausted its cash and then getting them up and running again? Enter the game late and fight with a fresh army!?

GM Davies is the author of Play 1 e4 e5: A Complete Repertoire for Black, Everyman, 2005


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5 Comments so far

  1. Zero Return Day « Masteroftheuniverse’s Weblog on February 24, 2009 6:14 pm

    […] Be sure to check out this excellent post that Nigel Davieswrote over at Daily Speculations. […]

  2. Gary Rogan on February 24, 2009 8:36 pm

    Might as well start a tariff-based trade war and have this charade over with. Impose prohibitive tariffs on assembled imports (include most parts) from anywhere outside of Canada and Mexico. The unions know they have the upper hand so nobody else has any leverage, and there is now no political will or way to let any one of the big three fail. A trade war is far cheaper than subsidizing an increasing range of industries with no cap forever. Japan, Korea, China, and Germany will get behind their flag-ship producers in any kind of a war, and a subsidy battle will bankrupt everyone quicker than a tariff war. It’s debatable whether all the historical evidence that trade sanctions deepen depressions is worth anything. Arguing for “free trade” in the presence of multi-billion subsidies is laughable. And let’s face it, all of this is being done to take care of the retirees’ health costs, so the US taxpayers will subsidize them one way or another. Might as well rely on those who buy cars to the extend possible as opposed to the general population. Even with a trade war there is a long period of regular subsidies when no one is buying, but it either ends when the recession ends or when the whole country goes down the drain.

  3. Matt Johnson on February 25, 2009 6:52 pm

    I agree, it’s best to fold quickly, chip count is irrelevant.

  4. david on February 25, 2009 7:45 pm

    government……seems as long as I can recall, the cry has always been government too big, needs to be reduced, yet it keeps getting bigger and meddles more as the decades have gone by. the deck is
    stacked and it's stacked against us minimum wage earners. cars should be tailor made like the best suits, where just a few can afford. this is 2009 not 1909…..not everyone can afford a thoroughbred horse, funny how science fiction has transit solutions to a tee, but guess we just think more roads for the cars are the solution………..hahah

  5. Clay Collier on February 26, 2009 10:59 am

    Excellent photo of the 2,3 off suit hole cards in a Texas hold 'em game to represent a terrible hand. There is, however, a worse hand: the 2,7 off suit. With the 2,3 there is at least a remote chance of putting together a straight, whereas with the 2,7 you had better have a good poker face.

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