‘The people’s car,’ that’s what it literally means, does the word ‘volkswagen,’ so I understand.
Of course the company doesn’t belong to just any old commoners, it now belongs to a bunch of rich people (who own Porsche). And this group of latter-day nobles are now set to get a lot richer, simply by
a) taking advantage of the current ‘financial crisis’
b) not giving a pair of fetid dingo’s kidneys that their profits are nothing to do with hard work and
c) being rich enough in the first place to play the system, when the majority of people are now preparing for a financial struggle. Or, worse, dying of starvation at the rate of some 30,000 people a day worldwide – but that’s another rant, for another day…[/edit]
Some people dismiss me (and those who think like me) as being ‘envious.’
No, I’m not ‘envious,’ I’m sick to death of this sick society.
[further edit in response to Polly – hi, Polly ]
The point is, it went like this:
1. Volkswagen has been in trouble for a while.
2. Lots of investors, seeing that Volkswagen was in trouble, gambled* on the price of the Volkswagen stock continuing to fall. These highly-paid ‘financial experts’ (using funds entrusted to them) acquired stock in Volkswagen, deferring payment for it. They were counting on the price of the shares going down so that when they had to pay, they would pay less than the price they had ‘bought’ them for, and thus make money on the deal.
3. Meanwhile, Porsche had its eyes on Volkswagen (perhaps before the current global financial fiasco, perhaps in conjunction with it).
4. Stock prices of all companies everywhere plummetted as a result of ‘whatever-they’re-going-to-call-this-catastrophic-global-financial-event-one-day.’
5. Porsche then bought up a huge stake in Volkswagen (at rock-bottom prices). This made stock in Volkswagen rarer than a deranged ewe in a pilot’s seat. As a result, the price of Volkswagen stock rocketed, not just through the roof but so high that it startled several flocks of birdies heading south for the winter.
6. This left the investors I mentioned in (2) above in total headless chicken mode. They were relying on the stock price falling, not rising. To cut their losses, they all tried (at the same time) to buy shares in Volkswagen. This sent the price of the stock to record levels (as I understand it, briefly making Volkswagen the most highly-valued company on the planet, ever).
7. Porsche then sold a portion of this stock (at record levels) – holding back enough so that Porsche still retained overall ownership of Volkswagen. Porsche made billions of foldable green bits of paper as a result. And it produced absolutely nothing in the process. Neither Porsche nor Volkswagen made any new cars; neither company guaranteed any new (or old) jobs. Porshe’s owners played the financial system to make an absolute mint (almost literally). See my previous blog entry (in particular, the bit about ‘stirring pots’ and ‘conspiracies’).
* That’s all the stock market really is: legalised gambling, on a vast scale. I’ve got nothing against gambling with my own money. The difference here is that the big players on the stock market are gambling with money that doesn’t belong to them, it belongs to other people. People who suffer when they get it wrong. Meanwhile, the ‘experts,’ more often than not, continue to draw their enormous paychecks and bonuses.
After all, the stock market has a ‘herd mentality.’ Nobody could possibly have foreseen that this ‘crisis’ would arise, could they?
Well, no, not unless you’re standing back and thinking: "Duh."