rh13's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/184679/comments http://seekingalpha.com/article/155927-is-the-chevy-volt-only-a-fair-weather-car?source=feed#comment-628052 628052 Thu, 13 Aug 2009 09:51:18 -0400 http://seekingalpha.com/article/148412-gm-shares-just-won-t-quit?source=feed#comment-585631 585631 Mon, 13 Jul 2009 10:02:05 -0400 http://seekingalpha.com/article/118414-buffett-saddles-up-his-hog-stay-away?source=feed#comment-375535 375535 Wed, 04 Feb 2009 11:20:07 -0500 http://seekingalpha.com/article/114983-where-citigroup-went-wrong?source=feed#comment-357518 357518 You can't take it as a fact that the financial supermarket idea is untenable. That is an oversimplification. Although large, complex organizations do have many possibilities for error, they also have great resources to prevent error if they use them effectively. ]]> Fri, 16 Jan 2009 10:01:18 -0500 You can't take it as a fact that the financial supermarket idea is untenable. That is an oversimplification. Although large, complex organizations do have many possibilities for error, they also have great resources to prevent error if they use them effectively. ]]> http://seekingalpha.com/article/114808-government-shouldn-t-dictate-bank-behavior?source=feed#comment-355846 355846 Wed, 14 Jan 2009 14:50:04 -0500 http://seekingalpha.com/article/111264-why-i-need-a-government-bailout?source=feed#comment-332277 332277 Wed, 17 Dec 2008 14:04:50 -0500 http://seekingalpha.com/article/107566-the-big-three-crisis-stocks-plunge-as-politicians-moralize?source=feed#comment-313734 313734 Mon, 24 Nov 2008 11:46:31 -0500 http://seekingalpha.com/article/106196-cramer-s-picks-is-gm-lehman-s-twin-11-14-08?source=feed#comment-307938 307938 Mon, 17 Nov 2008 11:35:06 -0500 http://seekingalpha.com/article/105772-nationalize-the-automakers-on-tom-friedman-s-op-ed?source=feed#comment-307848 307848 There is also the basic question of fairness. The American Three pay salaries and benefits that are outside the limits of the market. Why should the government, that is, the rest of us, subsidize companies that overpay the favored few?
Finally, there is just no way the government can put up enough money to pay all the people in comparable jobs wages comparable to what the American Three make. Our economy does not produce that much money.
I think there is a fair chance one or two of the American Three will survive in some form without government subsidies. They have done a remarkable job of producing vehicles over the last hundred years and recently they are showing signs of adapting to current conditions. ]]> Mon, 17 Nov 2008 10:08:47 -0500 There is also the basic question of fairness. The American Three pay salaries and benefits that are outside the limits of the market. Why should the government, that is, the rest of us, subsidize companies that overpay the favored few?
Finally, there is just no way the government can put up enough money to pay all the people in comparable jobs wages comparable to what the American Three make. Our economy does not produce that much money.
I think there is a fair chance one or two of the American Three will survive in some form without government subsidies. They have done a remarkable job of producing vehicles over the last hundred years and recently they are showing signs of adapting to current conditions. ]]> http://seekingalpha.com/article/105772-nationalize-the-automakers-on-tom-friedman-s-op-ed?source=feed#comment-307822 307822 Mon, 17 Nov 2008 09:53:10 -0500 http://seekingalpha.com/article/105550-dhl-gm-does-failure-have-consequences?source=feed#comment-304041 304041 The phrase, "Too big to fail," was properly applied to financial institutions. Even there, the concept is arguable, but the idea was that, since people depend so heavily on a functioning financial system, the sudden, outright failure of a company big enough to be a critical part of the financial system might deprive people of services that allow the economy to hum.
That reasoning may be right or it may be wrong. (We'd have to guess it's wrong, since the decision was made by and for the financial industry.) Anyway, it does not apply to automobile manufacturers of any description. In Cuba, people are making do with cars manufactured in the 1950's. In New York and London, people get around by train. Even if I do need a car, I can get by with a Honda made in Tennessee, a Subaru made in Indiana, a Mazda made in Michigan, or perhaps a Tesla made in California.
Despite its failures, GM has done pretty well considering that its cost of employing people in union jobs is about twice what other auto makers experience. "Saving" GM without changing that doesn't fix anything, it just delays the day of reckoning. ]]> Wed, 12 Nov 2008 11:04:49 -0500 The phrase, "Too big to fail," was properly applied to financial institutions. Even there, the concept is arguable, but the idea was that, since people depend so heavily on a functioning financial system, the sudden, outright failure of a company big enough to be a critical part of the financial system might deprive people of services that allow the economy to hum.
That reasoning may be right or it may be wrong. (We'd have to guess it's wrong, since the decision was made by and for the financial industry.) Anyway, it does not apply to automobile manufacturers of any description. In Cuba, people are making do with cars manufactured in the 1950's. In New York and London, people get around by train. Even if I do need a car, I can get by with a Honda made in Tennessee, a Subaru made in Indiana, a Mazda made in Michigan, or perhaps a Tesla made in California.
Despite its failures, GM has done pretty well considering that its cost of employing people in union jobs is about twice what other auto makers experience. "Saving" GM without changing that doesn't fix anything, it just delays the day of reckoning. ]]> http://seekingalpha.com/article/103873-ford-have-you-driven-a-convertible-preferred-lately?source=feed#comment-297998 297998 Tue, 04 Nov 2008 10:09:35 -0500 http://seekingalpha.com/article/103498-market-for-electric-vehicle-batteries-is-heating-up?source=feed#comment-297167 297167 Mon, 03 Nov 2008 10:33:23 -0500 http://seekingalpha.com/article/102559-living-within-our-means-automotive-edition?source=feed#comment-293648 293648 Wed, 29 Oct 2008 13:54:51 -0400 http://seekingalpha.com/article/101066-ford-kerkorian-s-loss-could-be-your-win?source=feed#comment-287774 287774 One possibility is this: Consolidations and sales are being considered in the automobile industry. Maybe Kerkorian wanted to send a signal that he would not interfere with a sale or merger. If that were to happen, it would probably be good for his investment, particularly in the short term.
He hasn't sold a lot of his stock in Ford. He said he is considering selling all of it, but he did not say he would, or when.
Also, maybe he just got stretched thin and had to sell something. I don't know what else he might have in mind.
I haven't changed my mind about Ford. I think it is risky, but likely to pay off very well from its current levels. The current radical sales slump is probably due to the financial market freeze, and that will likely be corrected soon, especially for cars. Cars follow fairly predictable value patterns, notwithstanding the recent experience with SUV's. People aren't going to quit driving. They usually don't even cut down driving very much. ]]> Wed, 22 Oct 2008 10:56:33 -0400 One possibility is this: Consolidations and sales are being considered in the automobile industry. Maybe Kerkorian wanted to send a signal that he would not interfere with a sale or merger. If that were to happen, it would probably be good for his investment, particularly in the short term.
He hasn't sold a lot of his stock in Ford. He said he is considering selling all of it, but he did not say he would, or when.
Also, maybe he just got stretched thin and had to sell something. I don't know what else he might have in mind.
I haven't changed my mind about Ford. I think it is risky, but likely to pay off very well from its current levels. The current radical sales slump is probably due to the financial market freeze, and that will likely be corrected soon, especially for cars. Cars follow fairly predictable value patterns, notwithstanding the recent experience with SUV's. People aren't going to quit driving. They usually don't even cut down driving very much. ]]> http://seekingalpha.com/article/97355-the-hedge-fund-of-america-lp?source=feed#comment-264718 264718 The piece of the puzzle I have not heard is this: how is the government going to assure the stuff they are buying is worth what they are paying for it? If that can be assured, there's no problem with the deal, financially. It still does not assure that it will have the desired effect of restarting the private capital markets. I also don't see any reason to think the capital markets won't restart by themselves. In order for buying and selling to take place, there needs to be a way for buyers to assure themselves they are getting what they are paying for. That's the same problem the government faces. ]]> Thu, 25 Sep 2008 10:14:54 -0400 The piece of the puzzle I have not heard is this: how is the government going to assure the stuff they are buying is worth what they are paying for it? If that can be assured, there's no problem with the deal, financially. It still does not assure that it will have the desired effect of restarting the private capital markets. I also don't see any reason to think the capital markets won't restart by themselves. In order for buying and selling to take place, there needs to be a way for buyers to assure themselves they are getting what they are paying for. That's the same problem the government faces. ]]> http://seekingalpha.com/article/94975-political-energy-policy-just-for-laughs?source=feed#comment-252025 252025 Thu, 11 Sep 2008 16:47:47 -0400 http://seekingalpha.com/article/94963-are-some-companies-too-big-to-let-fail?source=feed#comment-251598 251598 Certainly when a big company fails there is some pain. The impact on the government is not the worst of it. The impact on the lives of the employees is far greater and more personal.
Nevertheless, failure of companies (and contraction of companies) plays such an important part in the welfare of us all that we cannot afford to prevent it. When companies face failure, there are reasons for it. It happens because they are inefficient or ineffective. They are not getting the goods and services to people at prices people want to pay. Preventing their failure preserves inefficiency and ineffectiveness.
If we had done enough to prevent failure of stagecoach companies, we would never have had trains and planes.
What if Chrysler had failed? What would have happened? Chrysler customers would have bought cars and trucks from other companies. Displaced Chrysler workers would have found work in other companies, not necessarily car companies. Other companies would have bought the usable assets of Chrysler and put them to use. That is what happens when companies fail.
There have been more than a thousand car manufacturers in the U.S. All but a few failed, and the cars today are much better. ]]> Thu, 11 Sep 2008 10:59:27 -0400 Certainly when a big company fails there is some pain. The impact on the government is not the worst of it. The impact on the lives of the employees is far greater and more personal.
Nevertheless, failure of companies (and contraction of companies) plays such an important part in the welfare of us all that we cannot afford to prevent it. When companies face failure, there are reasons for it. It happens because they are inefficient or ineffective. They are not getting the goods and services to people at prices people want to pay. Preventing their failure preserves inefficiency and ineffectiveness.
If we had done enough to prevent failure of stagecoach companies, we would never have had trains and planes.
What if Chrysler had failed? What would have happened? Chrysler customers would have bought cars and trucks from other companies. Displaced Chrysler workers would have found work in other companies, not necessarily car companies. Other companies would have bought the usable assets of Chrysler and put them to use. That is what happens when companies fail.
There have been more than a thousand car manufacturers in the U.S. All but a few failed, and the cars today are much better. ]]> http://seekingalpha.com/article/89132-a-tale-of-two-industries?source=feed#comment-223666 223666 Tue, 05 Aug 2008 23:39:04 -0400 http://seekingalpha.com/article/89260-is-one-automaker-default-almost-a-sure-thing?source=feed#comment-223662 223662 Tue, 05 Aug 2008 23:18:30 -0400 http://seekingalpha.com/article/74240-ford-posts-gains-analysts-still-cautious?source=feed#comment-158252 158252 Mon, 28 Apr 2008 19:18:30 -0400