Friday, Jan 23, 2009

What Porsche's profits tell us about the financial crisis

MoneyWeek: What Porsche's profits tell us about the financial crisis

Porsche made more money in 2008 from stock market trading than it did making cars. It's a good illustration of why we're in such a mess now. We all became too focused on making money from financial wizardry than from doing what we were good at.

Posted by damien @ 12:43 PM (331 views) Add Comment

4 Comments

1. Hiphater said...

Call me old fashioned but surely DelaRue and the Royal Mint are the only firms that are in it to make money?
Porsche & GM should be making cars.

Don't mix up motive and reward!

A car firm is in business to make cars. That's a motive.
Make good cars, sell lots and you make a profit. That's a reward.

Of course we don't have any manufacturing capacity at all now.
That's why we're f*cked

Friday, January 23, 2009 01:24PM Report Comment
 

2. shipbuilder said...

Pah, Moneyweek, we covered this yesterday, keep up......;-)

Friday, January 23, 2009 01:28PM Report Comment
 

3. Andrewt said...

Basically this theft, a monetary system that allows this sort of thing will (and has) failed. We need to remember the most basic economic paradox `there are no free lunches`. I think from now on nothing will have a speculative value, for example the value of a company will be related to the profit it can make and the value of a property will be related to the rent it can return!.

Friday, January 23, 2009 02:10PM Report Comment
 

4. rumble said...

@ Andrewt: " the value of a property will be related to the rent it can return!"

Why does property have to be an investment?

Friday, January 23, 2009 08:54PM Report Comment
 

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