Whoa: Big Problems At Porsche?

Sighs. I had hoped it wouldn't come to this but it looks like Porsche's being buying spree is finally catching up to them.  Things always seem to end up this way when the little company takes on too much.  And in Porsche's case, VW has proved to be more than the company bargained for.

It seemed like everything was going smoothly, especially when VW's shares have soared in previous months.  What no one noticed was that Porsche was taking on massive debt, to the tune of $12 billion.  Yes that is even more than Chrysler's $6.9 billion in debt. That is an absolutely monstrous number for a company of Porsche's size.

It's obvious this is not turning out well for Porsche financially. I worried something would go wrong. The amount of that debt and the various problems that have followed are now resulting in a merger. And you know what?  That is not a good development. What happened to the much vaunted independent Porsche? That may be no more.

It's amazing to me that such a successful company with high profits and good sales it actually could have have skirted bankruptcy for three days in March.  The only way that was averted was due to a nearly $1 billion bridge loan from Volkswagen to (how ironic; a loan from the very company they bought!). Oh wait there's more! To continue operating, Porsche needs nearly $3.5 billion. What a mess!  Porsche's financial position is nearly ruined.  The perils of overreach!