Syl

Fast Money Recap - GM and Ford Go to Washington (11/28/08)

I like the coments better than I liked the authors. If Ford & GM get a bailout without an adjustment in their costs the Feds. are fools. Even the big three's cheapest fuel-efficient autos are almost $2 thousand more than the Japanese models that are rated higher.

Tuesday Market Preview: Down Further?

How can one justify a healthy bonus when he/she is the CEO of that failing company? Why has our inefficient government not put an early lid on bonuses before a bailout was approved? Another proposition that intrigues me is why do the majority of stock holders approve extravagant salaries, for failing companies, every time proxy time rolls around. The Board of Directors alway request a yes vote. Their argument is they don't want to lose their top people. By the way the
Board always wins the salary, bonus, and stock options they requested for the CEO's. I voted no on a request for a 12-B option for a mutual fund. I got a long distance call from some person in the upper echelons who asked why I voted no. I said that 12-B provision would not benefit me one cent. They held another vote and it was approved. I dropped the investment and I have had no reason to regret my vote.

Combining the Pickens Plan and an Auto Bailout

I agree with the comments Mmarrkk made. Some of those production line workers are doing repetative motions that a trained monkey could do, yet they get upwards of $20 a hour for it. Let the production line workers take a small hourly cut in wages and benefits to save their high paid jobs. Why ask me to pay higher taxes to save their jobs when it was they who have priced themselves out of the market. When negotiating they could also eliminate those high bonuses of those in administration.

Early Stimulus Wears Off

Government canot solve the problems caused by the unions and their high demands. People working at GM, Ford, etc. etc. could solve the problem overnight by renegotiation of contracts with cooperation from the executives with their excessive pay and bonuses. Bailouts are going to cost me more in taxes, thus I will have to pay for problems I did not create. Unless contracts are renogiated the auto companies will be back to the government trough in a year or two. People will not buy a high priced car when a better quality product is available with a more competitive price.

Detroit is Hemorrhaging

Years ago I predicted the production lines in America would slowly fall apart if the industries kept giving in to the high demands of the UAW. The UAW demanded extra high hourly wages for production line workers who were doing jobs that a trained monkey could do. Instead of bailouts why not insist that greedy CEOs give up those high bonuses and that the UAW lower their demands. If the hourly wages had not been pushed so high a bailout would never have been necessary. Our auto industry would be humming and Nissan and Toyota would have to fight for sales of their products if the CEOs and hourly workers would each give in a little.