Brad Ferris

What Do We Need In 2009? More Failure

You learn from failure and systemic risks aside I believe bad companies (unsustainable business models) should be allowed/encouraged to fail. What's the point of putting up more money for them to carryon with the promise of future success when we all know that's not possible?

Who Might Benefit From Detroit's Failings

I think everyone benefits over the long-term if GM fails. Clearly there will be hardships in the short-term, but what's really at issue is the viability of a business. Chapter 11 is the solution to that, not more money for restructuring.

Buy, Sell or Hold: GM's Too-Big-to-Fail Myth

Unions, management, government and a host of other contributors have all aided in the demise of these three former auto giants. Its difficult to place blame solely on one and we shouldn't dwell in the past to solve the problems of the future.
The bottom line is that the 3 NA autmomakers have a cost base well above their competition, have not been on the leading edge of innovation and have far too much supply.
If all three of those components are not addressed in any federal funding agreement then we'll find ourselves right back here shortly once again.
The prudent financial decision would to be to allow these companies to file for chapter 11 and protect jobs by providing interim funding for continued operations but making it very clear that a sustainable business model is the only option. The government should take an invested interest if they're putting taxpayer money into these failing businesses and the management of all should be dismissed. There are a number of past executives from 3M, GE and other industrial giants who don't need to know how to build cars to build a functional business globally.

The Ultimate Value Trap

Good responses.

Miken - in my submitted draft I did include all three brands of Toyota and why this was edited back to my original article I can't say. Maybe editors choice?

Any reader is welcome to question my advice or insights, but my business fundamentals are sound as I completed a business degree from Wilfrid Laurier University prior to going back to school for my BScN. I've had consulting experience both in Canada and abroad and do more than just change dirty diapers when in a hospital.

Dow 'Dirty Dozen' Offers High Yields and Good Value

PFE & GE would be my top picks from that group. I would not count on GM being a "yield" investment for quite some time due in part to the risks they face on many fronts. Chronic mismanagement vs. yield? I'll avoid that stocks as a value trap despite the upside many analysts and investors continue to see in that company