Will the global economic crisis effect F1?

[Conceptual]

All i know is that it doesn't look good from here. BTW, does anyone know where I can change $60K USD into silver bullion? I am thinking of putting my savings into hard assets, and I think that silver is at the best price right now.

If anyone knows where to buy this, PLEASE PM me!

Why would you want to put your money in metal? Inflation doesn't look to be of concern in the short-term and in fact we will probably see deflation which means you'll lose money off the metal!

The best thing to do when the market falls, which effectively means it is having a sale, is to find excellent companies and buy wads of them. Not only do excellent companies grow when the world goes backwards but they are excellent inflation hedges as they can raise prices whenever they want.

The problem with your understanding here is that you are not taking into consideration the talks that are going on RIGHT NOW about if the Foreign markets that were shaken by the USD are going to reject them outright.

At that point the USA becomes bankrupt, and no-one will go to work for worthless money, water and food, as well as heat, will be the main concern.

To ensure that my locality can have enough liquidity so we can maintain our division of labor, we will need a local "token" currency, and I think a $60K chunk of silver may be a good head start on allowing this to become a reality.

If now, we will be reduced to using Copper from our local scrap yards. That will work as well, but I think eventually, as things grow, there will be a need for the higher value tokens.

Anyways, F1 for Americans at that point will be very much limited to memories.

I sincerely hope that the talks of rejecting the USD do not come to pass this time, but if the problem is not fixed and they allow the USD back in, and we have ANOTHER crisis like this, they will NOT allow it to do it again.

*crossed fingers*

[WhiteBlue]

I think there are misconceptions about the role of credit swiss in the BMW/Sauber deal. When Red Bull pulled out of Sauber Credit Swiss took a lot of that equity and got some exposure at the same time. as a planned part of the BMW Sauber deal the share holding of Credit Swiss was reduced over time and we now see the end of this. that also means that their sponsorship runs out as it was part of the total package. so this isn't a reaction to markets but the execution of a long term M&A integration.

The US credit crisis hits financial institutions primarily and those companies and markets that got involved into asset backed securities without realising it. I don't believe a money burning spectacle that primarily lives from consumers like F1 will be affected to deeply. In the end it is about advertising for global products and as the global economy keeps expanding F1 should not do to bad. I would be worried if the world economy was set for a 15% anual recession. that would be really bad news for F1. as it stands the spenders are just shifting.

I think that F1 has more risk from the public perception of how it deals with the energy crisis. remember the discussions about the use of energy for night racing. we were talking 3.2 MW for the lighting system here. This is less than one big wind turbine in the north sea. It is certainly a lot less than what an aircraft uses in flight. A large aircraft like the 747 will exceed 60 MW of service power in flight. An automobile will typically use one thouthands of that but you use thousands of those to haul people to entertainment events. The new Genesis cruise ship of Royal Carribean will use 20 MW of electric drive power generated by diesels. So in reality the primary use of power in F1 is negligeable compared to the energy use for leisure travel. nevertheless politically F1 is very vulnerable to waste energy complaints. it is by embracing HERS and KERS technologies that F1 can overcome the vulnerability of the perceived frivolity of energy use.

[Conceptual]

I think there are misconceptions about the role of credit swiss in the BMW/Sauber deal. When Red Bull pulled out of Sauber Credit Swiss took a lot of that equity and got some exposure at the same time. as a planned part of the BMW Sauber deal the share holding of Credit Swiss was reduced over time and we now see the end of this. that also means that their sponsorship runs out as it was part of the total package. so this isn't a reaction to markets but the execution of a long term M&A integration.

The US credit crisis hits financial institutions primarily and those companies and markets that got involved into asset backed securities without realising it. I don't believe a money burning spectacle that primarily lives from consumers like F1 will be affected to deeply. In the end it is about advertising for global products and as the global economy keeps expanding F1 should not do to bad. I would be worried if the world economy was set for a 15% anual recession. that would be really bad news for F1. as it stands the spenders are just shifting.

I think that F1 has more risk from the public perception of how it deals with the energy crisis. remember the discussions about the use of energy for night racing. we were talking 3.2 MW for the lighting system here. This is less than one big wind turbine in the north sea. It is certainly a lot less than what an aircraft uses in flight. A large aircraft like the 747 will exceed 60 MW of service power in flight. An automobile will typically use one thouthands of that but you use thousands of those to haul people to entertainment events. The new Genesis cruise ship of Royal Carribean will use 20 MW of electric drive power generated by diesels. So in reality the primary use of power in F1 is negligeable compared to the energy use for leisure travel. nevertheless politically F1 is very vulnerable to waste energy complaints. it is by embracing HERS and KERS technologies that F1 can overcome the vulnerability of the perceived frivolity of energy use.

I think F1's energy conscious future will end up in AWD KERS flywheel systems with .125L turbo-diesels spinning the flywheel, not driving the tyres. This may be great as we as a world move to Golf Cart sized cars made from lightweight composite materials. Especially if F1 removes the minimum weight regulation, and the safety testing remains in place. We may only need 25hp engines to move these vehicles at these speeds, the regulations simply need to encourage, not smother, innovation and out-of-the-box invention.

[donskar]

WhiteBlue wrote:

I think that F1 has more risk from the public perception of how it deals with the energy crisis.

I strongly (but respectfully) disagree.

F1 has a VERY low profile in the minds of the public when it comes to global matters of import. And as it moves more and more out of Europe and the Americas to Asia and the Middle East, there will be even less focus on F1's role in energy consumption.

Just one example: during an F1 race weekend, the race cars consume - what? - a few hundred gallons of petroleum. Think it through: Yes, the F1 transporters (or jets) use fuel getting the cars to the tracks, but many spectators drive long distances, or even fly. The spectators consume many times several hundred gallons driving to and from the race (and sitting in huge traffic jams after the race).

It is no more logical to expect F1 to cure society's ills than it is to demand that movie stars must play an active role in global matters.

[heosat]

The problem with your understanding here is that you are not taking into consideration the talks that are going on RIGHT NOW about if the Foreign markets that were shaken by the USD are going to reject them outright.

At that point the USA becomes bankrupt, and no-one will go to work for worthless money, water and food, as well as heat, will be the main concern.

To ensure that my locality can have enough liquidity so we can maintain our division of labor, we will need a local "token" currency, and I think a $60K chunk of silver may be a good head start on allowing this to become a reality.

If now, we will be reduced to using Copper from our local scrap yards. That will work as well, but I think eventually, as things grow, there will be a need for the higher value tokens.

Anyways, F1 for Americans at that point will be very much limited to memories.

I sincerely hope that the talks of rejecting the USD do not come to pass this time, but if the problem is not fixed and they allow the USD back in, and we have ANOTHER crisis like this, they will NOT allow it to do it again.

*crossed fingers*

If you're so worried about the USD tanking then don't buy metal. Buy hard currency like the Yen, short the USD against the Euro or even better buy into a fund that invests in the Chinese stock market. Metal sits there and does nothing; countries and businesses will always grow and prosper. I know what I'd rather have working for me.

On the topic of F1 I bet Tobacco sponsorship will be allowed again if things get bad enough but, and I failed to think of this earlier, if F1 can improve itself then they need not worry about people switching off the races. We need more competition in the field, more overtaking and more courses that allow overtaking. If we have all of the above then F1 will be perfectly fine.

[alexbarwell]

In a game that is not renowned for cost-cutting this could be an interesting situation. With ING and Santander as major team sponsors, such financial outfits might have to scale back as they get drawn into the mess, but potential sponsors might get keener for greater visibility/success of the teams which might cause a drift to the front of the typical grid and lower teams struggling. We saw some teams hitting the wall (financially!) and changing hands when times were not typically tough.