malach hamovess

Ousting Rick Wagoner Won't Solve GM's Problems

creditors need to get real, too. bonds trading at 15 -20 cents on the dollar aren't going to be paid off. They, along with the gov and the unions are the new common shareholders - and they should deal directly with each other in bankruptcy court rather than through a stooge with no real authority


On Mar 30 08:12 AM Westy wrote:

> Right on - chap 11 will require the agreement of all major players
> incl Uncle Sam. Labor needs to get real.

Ousting Rick Wagoner Won't Solve GM's Problems

Wagoner may not be the problem; but as long as he's there, it's impossible to find a real solution. Looking at it a bit more seriously, he was appointed by the board; the board represents the common shareholders who elect and re-elect them; in real life, with the company's bonds trading at 15 - 20 cents on the dollar, it's quite obvious that the common shareholders are representatives of a worthless nothing. Yet, it was their guy who was running the show.

If anything happens at GM - for good or bad - it will be because of actions taken by labor, creditors, and the government (lender of last resort). As such, a guy whose only claim to legitimacy is that he was appointed by a non-representative board has no place at the helm.

GMAC: Who's in Charge?

There are hundreds of soldiers coming in from the front in this unprecedented economic war; if we can stabilize some, maybe we'll find a way to rehabilitate them down the line. Otherwise, if we just let them die, we'll regret it later.

The GMAC conversion stinks like last week's fish; but it's better than having it go down the drain - at least for now.

The Dow's Lost Decade

Rash generalization, at best. It's not about the industrial era vs. the information era - after all, Citigroup has as many programmers on its staff as Microsoft.

It's really an issue of a complete lack of real earnings by many institutions, cutting across multiple industries with a pattern that is discernable only to those who create numerous exceptions to define rules.

If information were dominant, Microsoft would be riding high along with Intel which virtually solidified its hold as the core of all tech.

Wall Street Breakfast: Must-Know News

the g-20 summit meeting will denounce bank failures and vow a pledge to improve their economies.

it will be as effective as UN resolutions condemning Israel's occupation or of Senate resolutions honoring mother's day

General Garbage

the 90s were a bit too heady for GE; however, it hasn't fared well at all under George Bush. The 15% rate on dividend hasn't helped; maybe, a commitment toward renewable energy (wind turbine) and clean energy (nuclear reactors) will.