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RE: Auto Lending Madness - Did Someone Say "Bubble?"
If GM’s business decreases by 50%, their 2,700 suppliers will also suffer. Let’s assume each of GM’s suppliers has ten suppliers and the supply chain ends there (it doesn’t) - that is 27,000 businesses who are negatively affected.
50%?????!!!!!!! In one year? thats beyond ridiculous, its econ science fiction. Like a 10% fall in revenue, and they'll be shitting themselves. Theyll pay for it with forced, unpaid vacation for ppl in the plants if it comes to that, not by dicking over their suppliers..
The 50% was an arbitrary number. My intention wasn't to estimate how much sales could fall; it was to show how many other businesses falling sales would hurt. I don't think they would screw over their suppliers, but they'd be forced to order less product.