Difference between revisions of "Talk:Economics Lecture Six"
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This flatly contradicts the prior sentence regarding the government bailout of Chrysler. Chrysler survived its 1979 bankruptcy so that it could go bankrupt again in 2009! Also, since Oct 2008, you could add Bear Stearns, Fannie Mae, Freddie Mac, AIG, Chrysler, GM, all the major US banks and many regional banks (taken over by the FDIC) to the list of organizations who were wholly taken over or assisted by the Government to save them from going bankrupt? [[User:TadghOB|TadghOB]] 11:02, 11 June 2009 (EDT) | This flatly contradicts the prior sentence regarding the government bailout of Chrysler. Chrysler survived its 1979 bankruptcy so that it could go bankrupt again in 2009! Also, since Oct 2008, you could add Bear Stearns, Fannie Mae, Freddie Mac, AIG, Chrysler, GM, all the major US banks and many regional banks (taken over by the FDIC) to the list of organizations who were wholly taken over or assisted by the Government to save them from going bankrupt? [[User:TadghOB|TadghOB]] 11:02, 11 June 2009 (EDT) | ||
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| + | == NBA example == | ||
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| + | Hi, just wanted to make a quick correction to your example about NBA teams and the number of employees they have. First of all, the example seems to conflate players who play basketball with other staff employees (see [http://www.nba.com/bulls/chicago-bulls-staff-directory.html] for an example of the various sorts of management positions that an NBA franchise has), of which there very well may be thousands. Further, the size of NBA rosters is limited by the NBA's collective bargaining agreement (to 13 players, [http://hangtime.blogs.nba.com/2013/01/24/all-star-rosters-game-clock-overdue-for-a-dose-of-modern-inflation/ source]), and not by economies of scale. [[User:GregG|GregG]] 19:32, 1 April 2013 (EDT) | ||
Revision as of 23:32, April 1, 2013
Occasionally a major company will suddenly declare itself to be broke and will ask the government for a “bailout” to save its jobs. The car maker Chrysler did this about 25 years ago. The federal government, despite substantial criticism, provided cheap loans to Chrysler to keep it out of bankruptcy. So many jobs were at stake that there was political benefit to some officials for doing this.
You might want to update this to add the April 2009 Chrysler bankruptcy, and last week's GM filing. In the case of the 1979 Chrysler bailout, when the US Government's shares were sold in 1983, the US made a profit of about $350m on the investment[1].
But don’t expect the government ever to save a company you work for from going bankrupt.
This flatly contradicts the prior sentence regarding the government bailout of Chrysler. Chrysler survived its 1979 bankruptcy so that it could go bankrupt again in 2009! Also, since Oct 2008, you could add Bear Stearns, Fannie Mae, Freddie Mac, AIG, Chrysler, GM, all the major US banks and many regional banks (taken over by the FDIC) to the list of organizations who were wholly taken over or assisted by the Government to save them from going bankrupt? TadghOB 11:02, 11 June 2009 (EDT)
NBA example
Hi, just wanted to make a quick correction to your example about NBA teams and the number of employees they have. First of all, the example seems to conflate players who play basketball with other staff employees (see [2] for an example of the various sorts of management positions that an NBA franchise has), of which there very well may be thousands. Further, the size of NBA rosters is limited by the NBA's collective bargaining agreement (to 13 players, source), and not by economies of scale. GregG 19:32, 1 April 2013 (EDT)