sumosama's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/127902/comments http://seekingalpha.com/article/111653-more-financial-pitfalls-ahead-s-p?source=feed#comment-335874 335874
Happy Holidays!


On Dec 20 09:17 AM hmcclung wrote:

> My turtle died yesterday....damn George Bush!!!!]]> Mon, 22 Dec 2008 12:59:10 -0500
Happy Holidays!


On Dec 20 09:17 AM hmcclung wrote:

> My turtle died yesterday....damn George Bush!!!!]]> http://seekingalpha.com/article/111566-why-is-gm-bailing-out-cerberus?source=feed#comment-333881 333881 Fri, 19 Dec 2008 10:25:25 -0500 http://seekingalpha.com/article/111264-why-i-need-a-government-bailout?source=feed#comment-333153 333153 Thu, 18 Dec 2008 11:51:41 -0500 http://seekingalpha.com/article/111345-aig-s-bond-sale-is-no-cause-for-celebration?source=feed#comment-333150 333150 Thu, 18 Dec 2008 11:49:08 -0500 http://seekingalpha.com/article/110746-evaluating-good-and-bad-management-strategies?source=feed#comment-331101 331101 Tue, 16 Dec 2008 12:29:58 -0500 http://seekingalpha.com/article/110829-capital-one-on-delinquency-rates-and-fitch-s-broad-view?source=feed#comment-331076 331076
This is actually "gross" c/o. Net is gross + recoveries on previously charged off loans.

Good article though.]]> Tue, 16 Dec 2008 12:17:17 -0500
This is actually "gross" c/o. Net is gross + recoveries on previously charged off loans.

Good article though.]]> http://seekingalpha.com/article/110489-will-the-white-house-bail-out-detroit?source=feed#comment-330038 330038
Money is the sole responsibility of the legislature...that would be Congress, the House and the Senate. THEY have power of the purse.


On Dec 12 03:55 PM shadrach wrote:

> I realize Bush is our president and I've supported his decisions
> including the wars but when the majority of the people have said
> they don't want to bail out the auto industry and the congress has
> said no to bailing them out, just who the $*@&^ does Bush think
> he is to give them the money anyway.
>
> I think the same can be said of Obama as well with his continuing
> calls for this to be done. I know the dems love the unions but the
> people you are supposed to be representing are telling you no. What
> part of that don't they understand?
> ]]> Mon, 15 Dec 2008 12:29:02 -0500
Money is the sole responsibility of the legislature...that would be Congress, the House and the Senate. THEY have power of the purse.


On Dec 12 03:55 PM shadrach wrote:

> I realize Bush is our president and I've supported his decisions
> including the wars but when the majority of the people have said
> they don't want to bail out the auto industry and the congress has
> said no to bailing them out, just who the $*@&^ does Bush think
> he is to give them the money anyway.
>
> I think the same can be said of Obama as well with his continuing
> calls for this to be done. I know the dems love the unions but the
> people you are supposed to be representing are telling you no. What
> part of that don't they understand?
> ]]> http://seekingalpha.com/article/110554-10-an-hour-pay-gap-billions-of-extra-dollars-a-year?source=feed#comment-330031 330031
Or could it be quality of life in that people do not want to relocate to Detroit?

Really???



On Dec 14 08:48 AM drummerboy wrote:

> what your analysis fails to mention the reason why these foreign
> companies always seek to be in the southern states of this country
> is because labor, and the cost of living is so much cheaper.look
> at the history in this country, and the old adage, the south is gonna
> do it again. you may still be in the dark ages with the mentality
> that labor is cheap, or should be cheap,hence the reason why the
> civil war was fought. show me one of these foreign car companies
> that establish themselves in a geographical area that is anywhere
> north kentucky. you won't! these car companies that come to this
> country know more about history and demographics in order to get
> the most bang for their buck. remember,it's the south who have NEVER
> had respect for the labor force, chaingangs,civil war,slave labor.
> come one folks, he who blames labor for any type of ruination in
> this country is a fool.blame a working man for working.thats insane.whats
> even more insane is the notion that its a union's fault. wake up
> america. he who has never belonged, or has never gotten their finger
> nails dirty will never understand.time to keep the eye on the real
> ball is now. southern politicians who want to protect the notion
> that labor is only worth 20k a yr., lawyers and insurance companies
> as well. get a clue]]> Mon, 15 Dec 2008 12:26:30 -0500
Or could it be quality of life in that people do not want to relocate to Detroit?

Really???



On Dec 14 08:48 AM drummerboy wrote:

> what your analysis fails to mention the reason why these foreign
> companies always seek to be in the southern states of this country
> is because labor, and the cost of living is so much cheaper.look
> at the history in this country, and the old adage, the south is gonna
> do it again. you may still be in the dark ages with the mentality
> that labor is cheap, or should be cheap,hence the reason why the
> civil war was fought. show me one of these foreign car companies
> that establish themselves in a geographical area that is anywhere
> north kentucky. you won't! these car companies that come to this
> country know more about history and demographics in order to get
> the most bang for their buck. remember,it's the south who have NEVER
> had respect for the labor force, chaingangs,civil war,slave labor.
> come one folks, he who blames labor for any type of ruination in
> this country is a fool.blame a working man for working.thats insane.whats
> even more insane is the notion that its a union's fault. wake up
> america. he who has never belonged, or has never gotten their finger
> nails dirty will never understand.time to keep the eye on the real
> ball is now. southern politicians who want to protect the notion
> that labor is only worth 20k a yr., lawyers and insurance companies
> as well. get a clue]]> http://seekingalpha.com/article/110578-automakers-senate-s-carrot-and-stick-strategy-undermined?source=feed#comment-330021 330021
Like wise the votes for reconstruction aid to Iraq.

You really do need to revisit your civics lessons!


On Dec 15 07:27 AM Tim Miles wrote:

> Auto workers wages were not really the issue 1) since wages only
> represent 10 percent of the cost of a car and 2) Toyota's average
> wages in the United States are comparable to the BIg 3. The Center
> for Automotive Research has already exploded the myth that U.S. auto
> workers are over paid at $70 per hour.
>
> The Republican Senate vote was an outrage and a disgrace. Here are
> people who gave Wall Street and financial services companies$700B
> with little oversight and few strings attached. In fact, there is
> a recently discovered loophole that will result in no limitations
> on CEO compensation.
>
> As reported in an unpublished Federal history of U.S. assistance
> to Iraq since 2003, Congress has wasted $117B on Iraq reconstruction.
> These same Republican senators can bail out Iraq, but they can't
> give $15B to help 3 million workers in the U.S. auto and related
> industries, not to mention businesses in the communities where they
> are located. I hope the "average joes" in Ohio and elsewhere in the
> United States remember this attack on organized labor.]]> Mon, 15 Dec 2008 12:23:09 -0500
Like wise the votes for reconstruction aid to Iraq.

You really do need to revisit your civics lessons!


On Dec 15 07:27 AM Tim Miles wrote:

> Auto workers wages were not really the issue 1) since wages only
> represent 10 percent of the cost of a car and 2) Toyota's average
> wages in the United States are comparable to the BIg 3. The Center
> for Automotive Research has already exploded the myth that U.S. auto
> workers are over paid at $70 per hour.
>
> The Republican Senate vote was an outrage and a disgrace. Here are
> people who gave Wall Street and financial services companies$700B
> with little oversight and few strings attached. In fact, there is
> a recently discovered loophole that will result in no limitations
> on CEO compensation.
>
> As reported in an unpublished Federal history of U.S. assistance
> to Iraq since 2003, Congress has wasted $117B on Iraq reconstruction.
> These same Republican senators can bail out Iraq, but they can't
> give $15B to help 3 million workers in the U.S. auto and related
> industries, not to mention businesses in the communities where they
> are located. I hope the "average joes" in Ohio and elsewhere in the
> United States remember this attack on organized labor.]]> http://seekingalpha.com/article/110447-what-celent-didn-t-consider?source=feed#comment-327821 327821 Fri, 12 Dec 2008 16:27:45 -0500 http://seekingalpha.com/article/110254-tarp-the-sequel-auto-bailout?source=feed#comment-327815 327815
"thanks to high wages " ...so are they too high or not?

I do not believe that there is a $2500 difference in comparable smaller autos. Besides, if there was, let's chop that last "$800" and see what happens.
]]> Fri, 12 Dec 2008 16:20:44 -0500
"thanks to high wages " ...so are they too high or not?

I do not believe that there is a $2500 difference in comparable smaller autos. Besides, if there was, let's chop that last "$800" and see what happens.
]]> http://seekingalpha.com/article/110398-jack-welch-for-car-czar?source=feed#comment-327793 327793
Then again, we could auction the position off...]]> Fri, 12 Dec 2008 15:57:26 -0500
Then again, we could auction the position off...]]> http://seekingalpha.com/article/110329-satellite-radio-is-not-immune-to-big-three-troubles?source=feed#comment-327782 327782

On Dec 11 02:32 PM Thadeus Thornton III wrote:

> Has anyone else noticed how "Alpha" is flooding Yahoo finance with
> so many articles from questionable writers with dubious credentials?
>
>
> I'm not even even going to respond to anymore of these "Alpha" self
> appointed "expert" journalists. It has become obvious to me that
> this outfit has recruited a number of writers who, perhaps, just
> want to establish themselves and are being used to get "Alpha" on
> the map. Maybe a sign of the times. Starving journalists and out
> of work financial advisers or previous bank people looking for something
> to do writing drivel to exploit the sad business climate we find
> ourselves in. I guess there is always someone looking to make lemonade
> out of..... But I think Alpha is still just holding a lot of lemons
> and hasn't learned how to really make any really good lemonade. In
> my humble opinion :)]]> Fri, 12 Dec 2008 15:50:40 -0500

On Dec 11 02:32 PM Thadeus Thornton III wrote:

> Has anyone else noticed how "Alpha" is flooding Yahoo finance with
> so many articles from questionable writers with dubious credentials?
>
>
> I'm not even even going to respond to anymore of these "Alpha" self
> appointed "expert" journalists. It has become obvious to me that
> this outfit has recruited a number of writers who, perhaps, just
> want to establish themselves and are being used to get "Alpha" on
> the map. Maybe a sign of the times. Starving journalists and out
> of work financial advisers or previous bank people looking for something
> to do writing drivel to exploit the sad business climate we find
> ourselves in. I guess there is always someone looking to make lemonade
> out of..... But I think Alpha is still just holding a lot of lemons
> and hasn't learned how to really make any really good lemonade. In
> my humble opinion :)]]> http://seekingalpha.com/article/110379-trade-deficit-rises-destroying-more-american-jobs?source=feed#comment-327771 327771
I question your premise for this reason only: in your first paragraph you signal that you are even more out of touch with reality than the consensus estimate on the trade deficit...why should I read any further, except to find more typo's!
]]> Fri, 12 Dec 2008 15:42:21 -0500
I question your premise for this reason only: in your first paragraph you signal that you are even more out of touch with reality than the consensus estimate on the trade deficit...why should I read any further, except to find more typo's!
]]> http://seekingalpha.com/article/110437-preview-from-europe-rejected-auto-bailout-tanks-markets?source=feed#comment-327598 327598 Fri, 12 Dec 2008 13:14:35 -0500 http://seekingalpha.com/article/110450-let-s-hope-the-auto-bailout-has-failed-for-good?source=feed#comment-327590 327590

On Dec 12 11:16 AM bosun.j wrote:

> The comments herein have convinced me once and for all that America
> needs to fail. To disappear. For good. Now.
>
> The extremist-capitalists and their zero-sum nonsense must be wiped
> from the face of the planet. Now.
>
> As they seem to truly believe that some have to suffer for the good
> of the system I suggest we start with them! Today! Now.
>
> Indeed. Americans represent only 5% of the worlds population. Americans
> consume 26% of the worlds resources. Americans cause 95% of the worlds
> wars. Time to fail. Now!
>
> I can't wait for the collapse. Everyday I wake and look to see if
> America has fallen, has finally gotten her karmic due. I won't have
> much longer to wait.
>
> Let's see the vitriol that these sentiments elicit! I'll bet the
> extremist-capitalist scumbags will howl the loudest! Indeed, it will
> be interesting to see them react to the very same hatefulness they
> are targeting the unionists with.
>
> Indeed.]]> Fri, 12 Dec 2008 13:10:02 -0500

On Dec 12 11:16 AM bosun.j wrote:

> The comments herein have convinced me once and for all that America
> needs to fail. To disappear. For good. Now.
>
> The extremist-capitalists and their zero-sum nonsense must be wiped
> from the face of the planet. Now.
>
> As they seem to truly believe that some have to suffer for the good
> of the system I suggest we start with them! Today! Now.
>
> Indeed. Americans represent only 5% of the worlds population. Americans
> consume 26% of the worlds resources. Americans cause 95% of the worlds
> wars. Time to fail. Now!
>
> I can't wait for the collapse. Everyday I wake and look to see if
> America has fallen, has finally gotten her karmic due. I won't have
> much longer to wait.
>
> Let's see the vitriol that these sentiments elicit! I'll bet the
> extremist-capitalist scumbags will howl the loudest! Indeed, it will
> be interesting to see them react to the very same hatefulness they
> are targeting the unionists with.
>
> Indeed.]]> http://seekingalpha.com/article/110450-let-s-hope-the-auto-bailout-has-failed-for-good?source=feed#comment-327585 327585
Not sure about the credit crisis lending to this issue. Qualified buyers, or those who have a history prior to this year of paying back their loans have no problems buying cars. The rub is in the sub prime market. Should we reproduce the mortgage debacle in car lending (again)?

If your house is being foreclosed upon, you do not need a new car no matter the manufacturer.


On Dec 12 08:25 AM EC48 wrote:

> John D is right and we should remember that the root cause of the
> problem are the financial institutions and the government who allowed
> the financials to operate in an irresponsible manner. If it wasn't
> for their greed we wouldn't be in this mess but I didn't see any
> of the CEO's of financials subjected to the belittleing, maybe somewhat
> deserved, that the Detroit automakers went through.]]> Fri, 12 Dec 2008 13:08:25 -0500
Not sure about the credit crisis lending to this issue. Qualified buyers, or those who have a history prior to this year of paying back their loans have no problems buying cars. The rub is in the sub prime market. Should we reproduce the mortgage debacle in car lending (again)?

If your house is being foreclosed upon, you do not need a new car no matter the manufacturer.


On Dec 12 08:25 AM EC48 wrote:

> John D is right and we should remember that the root cause of the
> problem are the financial institutions and the government who allowed
> the financials to operate in an irresponsible manner. If it wasn't
> for their greed we wouldn't be in this mess but I didn't see any
> of the CEO's of financials subjected to the belittleing, maybe somewhat
> deserved, that the Detroit automakers went through.]]> http://seekingalpha.com/article/110375-how-some-of-the-smartest-investors-turned-dumb-in-2008?source=feed#comment-327487 327487
Happy Holidays!]]> Fri, 12 Dec 2008 11:52:51 -0500
Happy Holidays!]]> http://seekingalpha.com/article/110018-detroit-s-bailout-invites-competitive-response-from-abroad?source=feed#comment-326399 326399

On Dec 10 10:22 AM Thadeus Thornton III wrote:

>
> the Big Three
>
>
>
>
>
>
> Nothing needs to be said... Ford, Chrysler and GM's contributions
> after
> 9/11
>
> An interesting commentary...You might find this of interest:
>
> 'CNN Headline News did a short news listing regarding Fo! rd and
> GM's
> contributions to the relief and recovery efforts in New York and
>
> Washington.
>
> The findings are as follows.....
>
> 1. Ford- $10 million to American Red Cross matching employee
> contributions of the same number plus 10 Excursions to NY Fire Dept.
> The
> company also offered ER response ! team se rvices and office space
> to
> displaced government employees.
>
> 2. GM- $10 million to American Red Cross matching employee contributions
>
> of the sam e number and a fleet of vans, suv's, and trucks.
>
> 3. Daimler Chrysler- $10 million to support of the children and victims
>
> of the Sept. 11 attack.
>
> 4. Harley Davidson motorcycles- $1 million and 30 new motorcycles
> to the
> New York Police Dept.
>
> 5. Volkswagen-Employees and management created a Sept 11 Foundation,
>
> funded initial with $2 million, for the assistance of the children
> and
> victims of the WTC.
>
> 6. Hyundai- $300,000 to the American Red Cross.
>
> 7. Audi-Nothing.
>
> 8. BMW-Nothing.
>
> 9. Daewoo- Nothing.
>
> 10. Fiat-Nothing.
>
> 11. Honda- Nothing despite boasting of second best sales month ever
> in
> August 2001
>
> 12. Isuzu- Nothing.
>
> 13. Mitsubishi-Nothing.
>
> 14. Nissan-Nothing.
>
> 15. Porsche-Nothing. Press release with condolences via the Porsche
>
> website.
>
> 16. Subaru- Nothing.
>
> 17. Suzuki- Nothing.
>
> 18. Toyota-Nothing despite claims of high sales in July and August
> 2001.
> Condolences posted on the website Whenever the time may be for you
> to
> purchase or lease a new vehicle, keep this information in mind. You
>
> might want to give more consideration to a car manufactured by an
>
> American-owned and / or American based company. Apart from Hyundai
> and
> Volkswagen, the foreign car companies contributed nothing at all
> to the
> citizens of the United States ... It's OK for these companies to
> take
> money out of this country, but it is apparently not acceptable to
> return
> some in a time of crisis. I believe we should not forget things like
>
> this. Say thank you in a way that gets their attention..
>
> ++++ Pass it on, I just did. ++++
>
>
>
> ]]> Thu, 11 Dec 2008 11:30:57 -0500

On Dec 10 10:22 AM Thadeus Thornton III wrote:

>
> the Big Three
>
>
>
>
>
>
> Nothing needs to be said... Ford, Chrysler and GM's contributions
> after
> 9/11
>
> An interesting commentary...You might find this of interest:
>
> 'CNN Headline News did a short news listing regarding Fo! rd and
> GM's
> contributions to the relief and recovery efforts in New York and
>
> Washington.
>
> The findings are as follows.....
>
> 1. Ford- $10 million to American Red Cross matching employee
> contributions of the same number plus 10 Excursions to NY Fire Dept.
> The
> company also offered ER response ! team se rvices and office space
> to
> displaced government employees.
>
> 2. GM- $10 million to American Red Cross matching employee contributions
>
> of the sam e number and a fleet of vans, suv's, and trucks.
>
> 3. Daimler Chrysler- $10 million to support of the children and victims
>
> of the Sept. 11 attack.
>
> 4. Harley Davidson motorcycles- $1 million and 30 new motorcycles
> to the
> New York Police Dept.
>
> 5. Volkswagen-Employees and management created a Sept 11 Foundation,
>
> funded initial with $2 million, for the assistance of the children
> and
> victims of the WTC.
>
> 6. Hyundai- $300,000 to the American Red Cross.
>
> 7. Audi-Nothing.
>
> 8. BMW-Nothing.
>
> 9. Daewoo- Nothing.
>
> 10. Fiat-Nothing.
>
> 11. Honda- Nothing despite boasting of second best sales month ever
> in
> August 2001
>
> 12. Isuzu- Nothing.
>
> 13. Mitsubishi-Nothing.
>
> 14. Nissan-Nothing.
>
> 15. Porsche-Nothing. Press release with condolences via the Porsche
>
> website.
>
> 16. Subaru- Nothing.
>
> 17. Suzuki- Nothing.
>
> 18. Toyota-Nothing despite claims of high sales in July and August
> 2001.
> Condolences posted on the website Whenever the time may be for you
> to
> purchase or lease a new vehicle, keep this information in mind. You
>
> might want to give more consideration to a car manufactured by an
>
> American-owned and / or American based company. Apart from Hyundai
> and
> Volkswagen, the foreign car companies contributed nothing at all
> to the
> citizens of the United States ... It's OK for these companies to
> take
> money out of this country, but it is apparently not acceptable to
> return
> some in a time of crisis. I believe we should not forget things like
>
> this. Say thank you in a way that gets their attention..
>
> ++++ Pass it on, I just did. ++++
>
>
>
> ]]> http://seekingalpha.com/article/110126-autoworkers-pay-only-small-factor-in-detroit-s-problems?source=feed#comment-326392 326392
This comment and the inherent sense of entitlement to twice the going rate says all we need to know about this issue.

For years this travesty has gotten worse to include defined benefit AND defined contribution retirement plans and the infamous Job Banks.]]> Thu, 11 Dec 2008 11:27:37 -0500
This comment and the inherent sense of entitlement to twice the going rate says all we need to know about this issue.

For years this travesty has gotten worse to include defined benefit AND defined contribution retirement plans and the infamous Job Banks.]]> http://seekingalpha.com/article/110254-tarp-the-sequel-auto-bailout?source=feed#comment-326366 326366

On Dec 11 09:06 AM Mike_I_N_Mich wrote:

>
> The following U.S. government policies, many of them having popular
> support, hurt the big three significantly relative to the foreign
> transplants:
> 1. Uneven union laws across states:
> a. The 1935 U.S. government Wagner Act granted the right of workers
> in the private sector to organize labor unions and take place in
> strikes. What this effectively meant was the labor unions were allowed
> to seize the plant and prevent its use until they got what they wanted.
> This created the ridiculous result in the US that workers are paid
> in proportion to the pain they can inflict by shutting things down.
> Trains, docks, garbage collectors, police, … get high pay. People
> in low capital or less critical to safety related industries like
> restaurants and retail get paid low paid. The relationship of pay
> to skill, work ethic, hazards goes away. Soon after the Wagner act
> the UAW took over the auto industry; GM and Chrysler in 1937; Ford
> in 1941. With no foreign competition the UAW monopoly flourished
> for about 30 years.
> b. The 1947 U.S. government Taft–Hartley Act tried to reign in the
> unions after a series of post-war strikes. While some provisions
> were national, the states were allowed to pass "right-to-work laws"
> that outlawed union shops. Such shops require workers to join the
> union and pay dues. Said state laws are serious impediments to union
> organization and viability because few people want to pay dues if
> not required.
> c. The vast majority of foreign owned plants are in right-to-work
> states providing huge advantages in labor costs and productivity
> relative to the big three.
> d. The big three would find it impossible to change the state laws
> where they are located due to union dominance of state governments.
> If they built in the South they have to accept the UAW because they
> would strike back in Michigan.
> e. No other country has this crazy system to my knowledge.
>
> 2. Promoted defined benefit packages and kept them in the company
> name. Did you ever consider how totally stupid it is to pin an employee
> retirement package, meant to last about 50-60 years from first hire
> until death, to the viability of their company? The top 10 companies
> in 1950 were very different than in 2000, with the railroads taking
> a big dive since then. And in 2020 it will be totally different again.
> Defined benefit packages were a bad idea, promoted by the US government
> till this day, and the big three are paying the price. If a company
> is in decline, due to the other items mentioned here, their retiree
> pool grows relative to gross income and number of active workers.
> Costs rise and competitiveness goes down, sales decline in a vicious
> spiral. Note also that while someday the transplants will pay pensions
> here in the US, the bulk of their corporate salary people (engineers
> for instance) back home get pensions from the government. Again,
> a totally crazy concept promoted by the Feds with widespread public
> support. And again, affecting the big three orders of magnitude harder
> than the foreign auto companies.
>
> In most western nations, if there is a defined benefit program, it
> is paid into a government fund and is divorced from the company.
> If the company fails, people don’t lose their pension. In the U.S.,
> the Pension Benefit Guarantee Company, a quasi-government / private
> company (like Fanny-Mae) supposedly fills in when the company goes
> belly up. But it is really a welfare program, with maximum limits
> far lower than promised pensions for many salaried workers. The airline
> pilots at United Air Lines, the current poster child of how wonderful
> chapter 11 will be for the big three, got screwed out of a large
> percentage of their “guaranteed” pension. Apparently the courts have
> ruled bond holders have first dibs on people’s defined benefits supposedly
> “held in trust”. What a travesty; only in the worse run country in
> the western world. These plans were in lieu of 401k plans. They are
> not deferred compensation as some say. There is a pot of gold with
> the employees names on it.
>
> See the PBS Frontline episode here for what happened at United.
>
>
> www.pbs.org/wgbh/pages.../
>
> All of you with defined benefit plans are in jeopardy. The Feds can
> fix these laws by simply making pension funding shortfalls first
> in line for bankruptcy allocations. Put the vulture chapter 11 lawyers
> and banks second in line after peoples pensions (which are essentially
> saving accounts).
>
> 3. No national healthcare. This is killing all US industry because
> we are competing with foreign companies with virtually no health
> care costs at home. Again, for transplants, the tens of thousands
> of such people at corporate headquarters are not in the U.S., but
> back home with free insurance. I’m basically a free market person
> but U.S. healthcare is so screwed up, and the employer based care
> creating such a competitive disadvantage, I give up – company paid
> healthcare must go and something needs to replace it. Watch for a
> future blog entry on that topic. Even though the transplants provide
> health care for their workers this is again an order of magnitude
> bigger problem for the big three because: 1) Corporate staff is back
> home with free health care, transplant workers are younger and therefore
> healthier, big three also pays health insurance for a million retirees.
>
>
> 4. Blunt instrument CAFÉ laws. The original purpose of CAFE was to
> reduce depletion of finite fossil fuel supplies and/or to reduce
> foreign imports. The Global Warming theory did not exist when CAFE
> was instituted but CAFÉ supports this as well. These same goals are
> achieved in almost all other Western counties via very high (on order
> of $3-$6 per gallon) federal gasoline taxes. That is the primary
> reason the cars are smaller in Europe and Japan. Our cowardly government
> did not want to be associated with taxes so instead wrote CAFE laws
> so the big three could do the taxing. I would argue that such laws
> fell, and continue to fall, disproportionately on the big three.
> The laws regulate an average fuel economy for a fleet produced by
> a given company. This forced the big three to abandon the cars they
> made money on, and build cars they don’t make money on, usually at
> a loss. The economics are simple: it takes as many overpaid UAW workers
> to put a door on a $14000 focus as a $30000 F150. So the bigger and
> more expensive the car the better the big three can compete. The
> above mentioned economic disadvantages of the big three are exaggerated
> on small, lower cost cars. And yes, people expect small cars to cost
> less. Screwed again by the feds! Ford, for instance, has trucks providing
> over 50% of sales. A rapidly increasing percentage of these trucks
> are used in the trades; try carrying a load of bricks or even a saddle
> in a Focus. Why does the Ford commercial truck have to go into a
> CAFÉ formula when a Mack Truck or Caterpillar dump truck does not?
> In the rest of the world, where gas taxes are used to reduce fossil
> fuel consumption, each company is allowed to compete in the part
> of the vehicle market where they do best. The customer takes the
> cost of gasoline with tax into consideration when he decides what
> size and features he needs, and then shops the brands that play in
> that market. With CAFÉ, the big three were forced at gunpoint to
> build and sell small cars at a loss just so they could meet the consumer
> demand for larger cars and trucks with their greater utility (carried
> more people for instance). The Japanese entered the market in the
> small car nitch where their low cost and experience from the sane
> countries with gas taxes gave them the greatest advantage. The Japanese
> became associated with small cars and better gas mileage, although
> for the same size car and performance there was no difference on
> average.
> It it were one or two of these items the big three might have competed
> better, but between the four the cost disadvantage in thousands per
> car and the hill too hard to climb. People seem to think Americans
> are superman, blessed with privilege, and the big three should have
> been able to overcome these odds against our oriental upstarts. In
> my opinion the big three did an amazing job lasting this long, as
> they are only mere mortals; doing the best they can given the stacked
> deck against them.
> In the end it is not the above items that are killing the big three
> right now. These items and the recent gas spike put the big three
> in a weak position, but they were recovering with the help of the
> UAW. Cars sell on credit, and there is no money available. Houses
> are also credit sensitive, but the housing industry doesn’t have
> the large capital equipment (factories, labs, buildings) and huge
> staffs (engineers…) to keep feeding when there is a drop in sales.
> And the housing industry is dominated by illegal alien workers which
> they just let go.
> This credit crisis in not of the big three’s making by any stretch
> of the imagination. The most likely biggest wrongdoers in the congress
> and the federal bureaucracy, will keep their jobs and pensions. The
> second biggest wrongdoers in the financial sector, are getting a
> trillion or so dollars of bailouts.
> The big three are asking for a 5% loan and all this hate comes out
> in the press and the web. The gap between perception and reality
> is staggering.]]> Thu, 11 Dec 2008 11:07:12 -0500

On Dec 11 09:06 AM Mike_I_N_Mich wrote:

>
> The following U.S. government policies, many of them having popular
> support, hurt the big three significantly relative to the foreign
> transplants:
> 1. Uneven union laws across states:
> a. The 1935 U.S. government Wagner Act granted the right of workers
> in the private sector to organize labor unions and take place in
> strikes. What this effectively meant was the labor unions were allowed
> to seize the plant and prevent its use until they got what they wanted.
> This created the ridiculous result in the US that workers are paid
> in proportion to the pain they can inflict by shutting things down.
> Trains, docks, garbage collectors, police, … get high pay. People
> in low capital or less critical to safety related industries like
> restaurants and retail get paid low paid. The relationship of pay
> to skill, work ethic, hazards goes away. Soon after the Wagner act
> the UAW took over the auto industry; GM and Chrysler in 1937; Ford
> in 1941. With no foreign competition the UAW monopoly flourished
> for about 30 years.
> b. The 1947 U.S. government Taft–Hartley Act tried to reign in the
> unions after a series of post-war strikes. While some provisions
> were national, the states were allowed to pass "right-to-work laws"
> that outlawed union shops. Such shops require workers to join the
> union and pay dues. Said state laws are serious impediments to union
> organization and viability because few people want to pay dues if
> not required.
> c. The vast majority of foreign owned plants are in right-to-work
> states providing huge advantages in labor costs and productivity
> relative to the big three.
> d. The big three would find it impossible to change the state laws
> where they are located due to union dominance of state governments.
> If they built in the South they have to accept the UAW because they
> would strike back in Michigan.
> e. No other country has this crazy system to my knowledge.
>
> 2. Promoted defined benefit packages and kept them in the company
> name. Did you ever consider how totally stupid it is to pin an employee
> retirement package, meant to last about 50-60 years from first hire
> until death, to the viability of their company? The top 10 companies
> in 1950 were very different than in 2000, with the railroads taking
> a big dive since then. And in 2020 it will be totally different again.
> Defined benefit packages were a bad idea, promoted by the US government
> till this day, and the big three are paying the price. If a company
> is in decline, due to the other items mentioned here, their retiree
> pool grows relative to gross income and number of active workers.
> Costs rise and competitiveness goes down, sales decline in a vicious
> spiral. Note also that while someday the transplants will pay pensions
> here in the US, the bulk of their corporate salary people (engineers
> for instance) back home get pensions from the government. Again,
> a totally crazy concept promoted by the Feds with widespread public
> support. And again, affecting the big three orders of magnitude harder
> than the foreign auto companies.
>
> In most western nations, if there is a defined benefit program, it
> is paid into a government fund and is divorced from the company.
> If the company fails, people don’t lose their pension. In the U.S.,
> the Pension Benefit Guarantee Company, a quasi-government / private
> company (like Fanny-Mae) supposedly fills in when the company goes
> belly up. But it is really a welfare program, with maximum limits
> far lower than promised pensions for many salaried workers. The airline
> pilots at United Air Lines, the current poster child of how wonderful
> chapter 11 will be for the big three, got screwed out of a large
> percentage of their “guaranteed” pension. Apparently the courts have
> ruled bond holders have first dibs on people’s defined benefits supposedly
> “held in trust”. What a travesty; only in the worse run country in
> the western world. These plans were in lieu of 401k plans. They are
> not deferred compensation as some say. There is a pot of gold with
> the employees names on it.
>
> See the PBS Frontline episode here for what happened at United.
>
>
> www.pbs.org/wgbh/pages.../
>
> All of you with defined benefit plans are in jeopardy. The Feds can
> fix these laws by simply making pension funding shortfalls first
> in line for bankruptcy allocations. Put the vulture chapter 11 lawyers
> and banks second in line after peoples pensions (which are essentially
> saving accounts).
>
> 3. No national healthcare. This is killing all US industry because
> we are competing with foreign companies with virtually no health
> care costs at home. Again, for transplants, the tens of thousands
> of such people at corporate headquarters are not in the U.S., but
> back home with free insurance. I’m basically a free market person
> but U.S. healthcare is so screwed up, and the employer based care
> creating such a competitive disadvantage, I give up – company paid
> healthcare must go and something needs to replace it. Watch for a
> future blog entry on that topic. Even though the transplants provide
> health care for their workers this is again an order of magnitude
> bigger problem for the big three because: 1) Corporate staff is back
> home with free health care, transplant workers are younger and therefore
> healthier, big three also pays health insurance for a million retirees.
>
>
> 4. Blunt instrument CAFÉ laws. The original purpose of CAFE was to
> reduce depletion of finite fossil fuel supplies and/or to reduce
> foreign imports. The Global Warming theory did not exist when CAFE
> was instituted but CAFÉ supports this as well. These same goals are
> achieved in almost all other Western counties via very high (on order
> of $3-$6 per gallon) federal gasoline taxes. That is the primary
> reason the cars are smaller in Europe and Japan. Our cowardly government
> did not want to be associated with taxes so instead wrote CAFE laws
> so the big three could do the taxing. I would argue that such laws
> fell, and continue to fall, disproportionately on the big three.
> The laws regulate an average fuel economy for a fleet produced by
> a given company. This forced the big three to abandon the cars they
> made money on, and build cars they don’t make money on, usually at
> a loss. The economics are simple: it takes as many overpaid UAW workers
> to put a door on a $14000 focus as a $30000 F150. So the bigger and
> more expensive the car the better the big three can compete. The
> above mentioned economic disadvantages of the big three are exaggerated
> on small, lower cost cars. And yes, people expect small cars to cost
> less. Screwed again by the feds! Ford, for instance, has trucks providing
> over 50% of sales. A rapidly increasing percentage of these trucks
> are used in the trades; try carrying a load of bricks or even a saddle
> in a Focus. Why does the Ford commercial truck have to go into a
> CAFÉ formula when a Mack Truck or Caterpillar dump truck does not?
> In the rest of the world, where gas taxes are used to reduce fossil
> fuel consumption, each company is allowed to compete in the part
> of the vehicle market where they do best. The customer takes the
> cost of gasoline with tax into consideration when he decides what
> size and features he needs, and then shops the brands that play in
> that market. With CAFÉ, the big three were forced at gunpoint to
> build and sell small cars at a loss just so they could meet the consumer
> demand for larger cars and trucks with their greater utility (carried
> more people for instance). The Japanese entered the market in the
> small car nitch where their low cost and experience from the sane
> countries with gas taxes gave them the greatest advantage. The Japanese
> became associated with small cars and better gas mileage, although
> for the same size car and performance there was no difference on
> average.
> It it were one or two of these items the big three might have competed
> better, but between the four the cost disadvantage in thousands per
> car and the hill too hard to climb. People seem to think Americans
> are superman, blessed with privilege, and the big three should have
> been able to overcome these odds against our oriental upstarts. In
> my opinion the big three did an amazing job lasting this long, as
> they are only mere mortals; doing the best they can given the stacked
> deck against them.
> In the end it is not the above items that are killing the big three
> right now. These items and the recent gas spike put the big three
> in a weak position, but they were recovering with the help of the
> UAW. Cars sell on credit, and there is no money available. Houses
> are also credit sensitive, but the housing industry doesn’t have
> the large capital equipment (factories, labs, buildings) and huge
> staffs (engineers…) to keep feeding when there is a drop in sales.
> And the housing industry is dominated by illegal alien workers which
> they just let go.
> This credit crisis in not of the big three’s making by any stretch
> of the imagination. The most likely biggest wrongdoers in the congress
> and the federal bureaucracy, will keep their jobs and pensions. The
> second biggest wrongdoers in the financial sector, are getting a
> trillion or so dollars of bailouts.
> The big three are asking for a 5% loan and all this hate comes out
> in the press and the web. The gap between perception and reality
> is staggering.]]> http://seekingalpha.com/article/110168-holiday-stock-picks-for-the-unemployed-banker?source=feed#comment-326317 326317
These folks do not want to lose their jobs and jump (implying willingness) on any such trend.]]> Thu, 11 Dec 2008 10:31:47 -0500
These folks do not want to lose their jobs and jump (implying willingness) on any such trend.]]> http://seekingalpha.com/article/109895-nationalizing-detroit?source=feed#comment-325473 325473

On Dec 09 11:34 AM James F. Newell wrote:

> This proposed Triple Benefit Auto Program would produce three benefits
> simultaneously for the same federal budget expenditure. It would
> benefit the economy, the auto related workers, and the poor.
>
> The program would involve providing federal money to unemployment
> offices across the nation to purchase and maintain cars to lend to
> low income individuals who did not have a car but needed one to accept
> a job. The cars would be purchased from Ford, General Motors and
> Chrysler. The cars would be lent to people for as long as necessary
> for them to get themselves into a financial position in which they
> could afford to purchase their own cars.
>
> If presented to the President elect Obama and Congress and passed
> quickly, it would greatly help resolve the current crisis and help
> prevent a much more serious decline in the economy.
>
> James F. Newell, Ph.D. U. Washington, Seattle]]> Wed, 10 Dec 2008 10:12:30 -0500

On Dec 09 11:34 AM James F. Newell wrote:

> This proposed Triple Benefit Auto Program would produce three benefits
> simultaneously for the same federal budget expenditure. It would
> benefit the economy, the auto related workers, and the poor.
>
> The program would involve providing federal money to unemployment
> offices across the nation to purchase and maintain cars to lend to
> low income individuals who did not have a car but needed one to accept
> a job. The cars would be purchased from Ford, General Motors and
> Chrysler. The cars would be lent to people for as long as necessary
> for them to get themselves into a financial position in which they
> could afford to purchase their own cars.
>
> If presented to the President elect Obama and Congress and passed
> quickly, it would greatly help resolve the current crisis and help
> prevent a much more serious decline in the economy.
>
> James F. Newell, Ph.D. U. Washington, Seattle]]> http://seekingalpha.com/article/110022-great-shorting-opportunity-care-of-obama?source=feed#comment-325461 325461 Wed, 10 Dec 2008 09:53:29 -0500 http://seekingalpha.com/article/109778-chicago-standoff-redefaults-bode-ill-for-bank-shares?source=feed#comment-324729 324729
www.azcentral.com/news...]]> Tue, 09 Dec 2008 12:17:54 -0500
www.azcentral.com/news...]]> http://seekingalpha.com/article/109701-the-case-for-making-bigger-cars?source=feed#comment-324602 324602

On Dec 09 09:36 AM paulk8756 wrote:

> Detroit brought ALL of this upon themselves for the many reasons
> you folks cite and a myriad of others. The question is can they now
> turn it around? One would have to logically conclude the odds are
> against them.
>
> However, as we see in the news, the government is going to try anyway.
> Is this a good investment, one that a rational person would make?
> Hardly. But they're going to attempt it regardless.
>
> We'll get to watch this bailout process blow by blow as it unfolds.
> We shouldn't be surprised if it fails.]]> Tue, 09 Dec 2008 10:17:49 -0500

On Dec 09 09:36 AM paulk8756 wrote:

> Detroit brought ALL of this upon themselves for the many reasons
> you folks cite and a myriad of others. The question is can they now
> turn it around? One would have to logically conclude the odds are
> against them.
>
> However, as we see in the news, the government is going to try anyway.
> Is this a good investment, one that a rational person would make?
> Hardly. But they're going to attempt it regardless.
>
> We'll get to watch this bailout process blow by blow as it unfolds.
> We shouldn't be surprised if it fails.]]> http://seekingalpha.com/article/109701-the-case-for-making-bigger-cars?source=feed#comment-324596 324596

On Dec 08 12:24 PM mycargets52mpg wrote:

> 6 years ago, the B3B (Big 3 Bozos) were likely planning gasoline
> as of 12/31/08 to be what is was back then, about $1.60 per gallon
> Regular. That would have given them the confidence to keep producing
> whatever made money at the time. ]]> Tue, 09 Dec 2008 10:15:41 -0500

On Dec 08 12:24 PM mycargets52mpg wrote:

> 6 years ago, the B3B (Big 3 Bozos) were likely planning gasoline
> as of 12/31/08 to be what is was back then, about $1.60 per gallon
> Regular. That would have given them the confidence to keep producing
> whatever made money at the time. ]]> http://seekingalpha.com/article/109774-detroit-s-failure-and-the-dollar?source=feed#comment-324593 324593 Tue, 09 Dec 2008 10:12:16 -0500 http://seekingalpha.com/article/109778-chicago-standoff-redefaults-bode-ill-for-bank-shares?source=feed#comment-324577 324577

So a bank making a transactional loan decision, one that seems intelligent given the limited facts, warrants the wrath of the state of Ill? That is ridiculous!

Is the mantra now, "Make only good loans, unless they are too our friends or constituents!".
]]> Tue, 09 Dec 2008 10:05:39 -0500

So a bank making a transactional loan decision, one that seems intelligent given the limited facts, warrants the wrath of the state of Ill? That is ridiculous!

Is the mantra now, "Make only good loans, unless they are too our friends or constituents!".
]]> http://seekingalpha.com/article/109768-whatever-happened-to-bankruptcy?source=feed#comment-324571 324571
You article is long on passion, but short on facts. LOANS are what is being requested by the auto industry.

The Fed, FDIC, ... all played a role in the current banking crisis.]]> Tue, 09 Dec 2008 09:59:38 -0500
You article is long on passion, but short on facts. LOANS are what is being requested by the auto industry.

The Fed, FDIC, ... all played a role in the current banking crisis.]]>