[ExI] Greed + Incompetence + A Belief in MarketEfficiency =Disaster

[Henrique Moraes Machado (CI)]

Painlord> Germany, USA, France, Italy all they want help/bail out their car 
sector
> so it will survive the crisis. The problem is overproduction but if they 
> all do the same, the overproduction will continue.
> So, herd mentality is not only in the market, as BillK said, but also in 
> the government.


The problem with the auto industry is not overproduction but underselling. 
The production volume was ok until people stopped buying.

Appart from that, this should be taken by the auto industry as an 
opportunity to do things differently. Why do cars have to be huge expensive 
hunks of steel with engines capable of towing a house? Why a four or five 
seat car to mostly transport a single person (hence an idea that I have on 
urban toll - charge for empty seats)?