I noticed in the Washington Post business section this morning http://www.washingtonpost.com/wp-yn/content/article/2008/09/02/AR2008090202656.html that The Big 3 automakers are lining up at the government trough seeking $50 billion in loans so they can retool their aging factories to build more fuel efficient vehicles. I have to agree whole heartedly with the author, Steven Pearlstein that:
"In fact, it's hard to imagine an industry less deserving of government help. Here are three companies that for decades failed to produce cars that were well designed, well produced and exciting to look at, that fought tooth and nail against efforts to require greater fuel efficiency and, until recently, did too little to bring wages, benefits and retiree costs in line with competitive realities. And while they whined for years that it was unfair trade that put them at a disadvantage, Toyota, Honda, BMW and other foreign transplants came along to prove that it is possible to produce quality cars at affordable prices in U.S. factories while offering decent wages and benefits. "
Yes, and add the fact that for years Detroit has been brainwashing the American public, that by wrapping ourselves in the tons of steel and plastic of oversized SUVs which guzzle gas like a drunk on Saturday night while spewing carbon dioxide worse than what has been coming out of the political conventions, was the only responsible way to keep our families safe in the event of a crash on our ever increasing road-raged highways. SUVs were higher profit than cars, in part because they didn't have to conform to the car mileage and safety standards. Detroit militarized the streets by selling the illusion of ourselves as road warriors in leather seated, supercharged, go anywhere, never out of touch, suburban editions of Sherman Tanks. Never mind, due to their high center of gravity, they tended to roll over on their backs like an upset turtle. Or that the intimidation factors on our highways increased dramatically. Then again, you just might take that off-road trip someday in the ever diminishing wilds where you could actually use that 4 wheel drive. But I digress.
The Big 3 have made alot of bad decisions over the years, they ignored the storm clouds gathering on the horizon, and the head guys lined their pockets with green while screwing up royally. If they want to play like the big boys then perhaps they should have to sit in their own poop. I was against bailing out Chrylser many years ago, and I am against bailing out the Big 3 now. In this era of free trade, multinationalistic corporations, and free reigned capitalism they should reap what they sow. Too big to fail? Only in an election year.
By the way, another digression if I may. Back in the 1980's I did the "Buy American" thing. I purchased a K-car. It was the biggest piece of junk that I ever bought, next to the Chevrolet Vega that started burning oil at 20,000 miles. But those Toyotas that I have owned, well the Big 3 still can't compare in price, quality and dependabilty.
The Big 3 are running to Washington for corporate welfare. Aren't they just as deserving as those slick bankers on Wall Street who started a lot of this recent financial mess? This is where I have trouble with free-reign Capitalism. The big muckies cry for no regulation, get to make absurd salaries and benefits by running good companies into the ground while causing the economy a major headache in the process. But when the going gets tough they run to Big Daddy with hands outstretched. Grownups take responsibility for their actions and live with the consequences of their actions. Grow up Big 3, grow up.
Wednesday, September 3, 2008
Thursday, January 17, 2008
Merril Lynch and Good Money After Bad
Poor babies! Merril Lynch suffers a $10 billion dollar 4th quarter loss due to to the crash in the subprime mortage market (ML wrote down 14.6 billion dollars in investments). For years they were riding high on the profits of the real estate market bouyed by ever increasing Ponzi schemes and now the time has come to pay the piper. I can't feel sorry for these folk who painted themselves into their own corner. They must have known that things could not keep on going as they were forever. At some point there had to be a correction of sorts in the real estate market. And they must have known who would have been left holding the bag when all those over priced homes financed by increasingly gimmicky and risky mortgages started heading south.
Now,I am just some regular smuck who lives in a modest neighborhood. Over the last few years my eyes have just been bulging at the jump in prices of our humble shacks. I live in what many consider a starter neighborhood where typical prices are 1/2 million plus. Believe me, these houses on postage stamp lots are hardly worth it. But up to a couple of years ago people were lined up to buy them, outbidding each other while the finance and investment industries were right there to fan the flames of the situation. Even I, unsophisticated little ole me, knew that what goes up must come down.
I guess when you are flying high, making all those great commissions, denial of reality can become the norm. Everyone is doing it, right? Well, Merril Lynch looked great in those heady days, but now reality has come home to roost. The party is over and, oh, what a headache! It is not like everyone knows that drinking too much of the devil's brew has payback the day after. Hey, anybody got a hair-of-the-dog package of subprime loans they can spare?
Anyway, Merril Lynch just received an infusion of cash from foreign investors to help keep the ship from sinking ($12.8 billion since December). Since these guys at ML are such wizards at losing money, you just have to wonder what kind of snake oil they are selling now to convince these foreign investors that they are not just throwing their hard earned cash to the winds. I am sure that there were some good commissions made on that deal. Good money after bad? We'll see.
Now,I am just some regular smuck who lives in a modest neighborhood. Over the last few years my eyes have just been bulging at the jump in prices of our humble shacks. I live in what many consider a starter neighborhood where typical prices are 1/2 million plus. Believe me, these houses on postage stamp lots are hardly worth it. But up to a couple of years ago people were lined up to buy them, outbidding each other while the finance and investment industries were right there to fan the flames of the situation. Even I, unsophisticated little ole me, knew that what goes up must come down.
I guess when you are flying high, making all those great commissions, denial of reality can become the norm. Everyone is doing it, right? Well, Merril Lynch looked great in those heady days, but now reality has come home to roost. The party is over and, oh, what a headache! It is not like everyone knows that drinking too much of the devil's brew has payback the day after. Hey, anybody got a hair-of-the-dog package of subprime loans they can spare?
Anyway, Merril Lynch just received an infusion of cash from foreign investors to help keep the ship from sinking ($12.8 billion since December). Since these guys at ML are such wizards at losing money, you just have to wonder what kind of snake oil they are selling now to convince these foreign investors that they are not just throwing their hard earned cash to the winds. I am sure that there were some good commissions made on that deal. Good money after bad? We'll see.
Wednesday, January 9, 2008
Hillary's Rabbit Out of Hat
Well now, Hillary wins in New Hampshire. You go girl! I say that not so much as a Hillary supporter (I still prefer Edwards), but more from the glee that gushes out of me because the pundits pretty much had it all wrong. Hey you pundit guys, don't be so anxious to be writing candidates off before the people (you know, the voters) have had their chance at the polls. Just maybe the media air bags don't influence us as much as they like to think they do. I hope not anyway.
I was disappointed with Edward's distant third place. But hey, it's not over till the Fat Lady sings, and I don't see her in the wings yet. One can hope that South Carolina will treat one of their own well. I sure like the things that Edwards has had to say, especially concerning the disparities in our contemporary society.
Obama, well , he did great. Good solid numbers. He has the gift of oratory, puts on a good show, and certainly can stir the congregation. But if the contest comes down to be between Clinton vs. Obama - I will jump on the Clinton bandwagon. She is smart, savvy and tough. AND she knows the lay of the land - which is to say I think she could do the job better due to her experience versus Obama who has little more to offer in that category than wishful thinking. Then again, if experience was the only consideration then Biden should have been the choice. President Biden? I don't think so.
I was disappointed with Edward's distant third place. But hey, it's not over till the Fat Lady sings, and I don't see her in the wings yet. One can hope that South Carolina will treat one of their own well. I sure like the things that Edwards has had to say, especially concerning the disparities in our contemporary society.
Obama, well , he did great. Good solid numbers. He has the gift of oratory, puts on a good show, and certainly can stir the congregation. But if the contest comes down to be between Clinton vs. Obama - I will jump on the Clinton bandwagon. She is smart, savvy and tough. AND she knows the lay of the land - which is to say I think she could do the job better due to her experience versus Obama who has little more to offer in that category than wishful thinking. Then again, if experience was the only consideration then Biden should have been the choice. President Biden? I don't think so.
Friday, August 3, 2007
Minnesota Bridges Falling Down
The financial costs of the war in Iraq are at a trillion dollars and climbing. Yet here at home there is not enough money to keep up with our aging infrastructure of transportation, bridges and roads. This situation can only get worse with the continued waste of our national treasures being squandered in a wrong, unnecessary and misguided war.
My thoughts and prayers are with those who were injured and with the families and friends of those who lost their lives in the Minneapolis bridge collapse. But I ask, how many more bridges will have to fall before we in this country start getting our priorities right? In my own State of Maryland there are 406 structurally deficient and 997 functionally obsolete bridges (including our infamous double span Bay Bridges source: http://www.msnbc.msn.com/id/20093413/ ). A trillion dollars could have fixed a lot of bridges and maybe saved some lives. And as for those Bush Administration tax cuts for the rich - well as the roads crumble and the bridges fall they get to laugh all the way to the bank.
My thoughts and prayers are with those who were injured and with the families and friends of those who lost their lives in the Minneapolis bridge collapse. But I ask, how many more bridges will have to fall before we in this country start getting our priorities right? In my own State of Maryland there are 406 structurally deficient and 997 functionally obsolete bridges (including our infamous double span Bay Bridges source: http://www.msnbc.msn.com/id/20093413/ ). A trillion dollars could have fixed a lot of bridges and maybe saved some lives. And as for those Bush Administration tax cuts for the rich - well as the roads crumble and the bridges fall they get to laugh all the way to the bank.
Steve Case and Rationalizing Business as Usual (or How I Learned to Twist the Truth to make Myself Feel Good about Destroying the Planet)
I am unimpressed. In the Washington Post business section this morning there was a story about Steve Case (of AOL fame) building a new "environmentally friendly and culturally sensitive" luxury resort on 650 acres of rain forest in Costa Rica. Case plans to "redefine the luxury resort category by making environmental preservation" a priority at properties that his company will develop.
Just what the world needs, another luxury resort (evidently he plans to develop more of these eco-paradises). And that bit about environmental preservation - just what kind of mental and ethical gymnastics does someone have to perform to term plopping a 650 acre resort into a rain forest as something having anything to do with environmental preservation? Hey Steve! Hello!!!! Aren't we supposed to be preserving the rain forest, not destroying it to create another business opportunity that the world could well do without? I would have been much more impressed had he bought the rain forest and saved it for future generations.
But Steve is rich and can do what he wants. Sounds like business as usual to me. I am sure that Steve feels all warm and gushy inside because he has convinced himself that the way he disrupts an ecosystem is better than the clear cutting done by the likes of a Hilton or a Sheraton. Steve already has hundreds of millions of dollars gained from AOL. But that is not enough for the likes of him, he now has to make millions more destroying rain forests so the rich can have a trendy new way of vacationing while convincing themselves that they are actually helping the environment. Self-delusion must be a particularly popular past time of the rich and powerful.
Just what the world needs, another luxury resort (evidently he plans to develop more of these eco-paradises). And that bit about environmental preservation - just what kind of mental and ethical gymnastics does someone have to perform to term plopping a 650 acre resort into a rain forest as something having anything to do with environmental preservation? Hey Steve! Hello!!!! Aren't we supposed to be preserving the rain forest, not destroying it to create another business opportunity that the world could well do without? I would have been much more impressed had he bought the rain forest and saved it for future generations.
But Steve is rich and can do what he wants. Sounds like business as usual to me. I am sure that Steve feels all warm and gushy inside because he has convinced himself that the way he disrupts an ecosystem is better than the clear cutting done by the likes of a Hilton or a Sheraton. Steve already has hundreds of millions of dollars gained from AOL. But that is not enough for the likes of him, he now has to make millions more destroying rain forests so the rich can have a trendy new way of vacationing while convincing themselves that they are actually helping the environment. Self-delusion must be a particularly popular past time of the rich and powerful.
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