bobbobwhite

Should We Really Bail Out the Big Three Automakers with $73.20 Per Hour Labor?

All this Detroit bailout news from D.C. is to keep Detroit residents from rioting and creating severe social unrest there in an already trashed and unworkable city. D.C. cares nothing about the auto industry except for the jobs that will be lost when they eventually go under, as they will, eventually. Detroit cannot nationally nor globally compete any longer, and have always made an inferior product on purpose(sell,sell,sell... that only prospered when nothing else was available that was better. How many American cars are owned by all the people making the bailout decision, do you think? Maybe a couple?

In a perfect world for D.C., the gov't would like Detriot to fail in little dribs and drabs on its own and go under quietly and with honor, and not all at once, so the rioting will be less severe. But, due to abject incompetance in Detroit and D.C., it has come to a painful head in quite an inconvenient spot of bother for D.C. that must now be addressed differently than the more "honorable failure" way it would vastly prefer.

So, here we are in another bailout "plan" that will not work. Guess who will pay the bill for this, yet another, failure? You guessed it.

TARP Goes CARP Fishing

You actually think you will ever know even 1% of what is really going on? Get serious. The "bailout" was all just a ruse to get the slush fund in place, and now the real uses of these misbegotten funds will be as wastefully squandered as the money wasted earlier that got us into the mess in the first place.And then we will be in worse shape than we were before the bailout that was to save us all. Are we having fun yet?

And, don't be at all surprised if a bunch of that money is used for stuff that it was used for months and years ago, like company trips, parties and big bonuses. And, of course bank lobbies.

Global Stock Markets: Valuations Improving

This is a real "so what" article. Nothing of helpful substance.

On Normalized Earnings, The Cheapest Market in Two Decades

The big question is....are we going to see "normalized" earnings any time soon? Former estimates are dropping like flies. Scary times these.

Wall Street Breakfast: Must-Know News

Detroit has not been able to adjust to the global attack on its antiquated mindset regarding what a car should be for a user. Foreign makers have made high quality cars for decades, but Detroit still makes cars that fail in a few years, just like in the '50's. At one time I was not sure if junky Detroit cars everywhere was the result of owners neglecting them because they were bad cars, or that they were just crummy no matter what the owner did to care for them. Now I know...they are both.

No bailouts for any business, banks nor autos. They never work. Make it or break it on their own is they only way. Being in Detroit with aggressive unions is a real problem but not the entire problem(any excuse will do?)as Detroit wants you to think, as the main problem is cheap components and planned obsolescence along with a marketing-only mindset. Quality anything is way down on the list. "Make it look nice in the showroom, then sell, sell,sell!"

People are no different in Ohio or Tennessee or Mississippi than they are in Detroit, so why does Ohio(Honda)build a much better car? Modern attitude+ training+quality engineering, components and build= employee involvement. Detroit will not accept this so it has none of these, as it still stuck in its old time "glory days" wondering what happened and still thinking it is all someone else's fault. Left alone, Detroit will put itself out of its own misery soon.

Fast Money Recap - Icahn Speaks (11/3/08)

What could possibly cost taxpayers more than the multi-trillion national debt Bush has run up in 8 years? Raising taxes for a better health care system that is sorely needed and way overdue infrastructure improvements. etc? Hardly.

At the very least, when taxes are raised, it should do the average American some direct good. Icahn talks like all rich business people..."don't regulate us". Of course, he might want to take a lesson from what dereg did to the bank/loan business and to the global economy, but he won't as he wants to continue unabated in his maverick, unregulated ways that has put this country on the brink.

Another Perma-Bear Converts To Bullish-ism - Barron's

Gabe writes like Larry Kudlow sounds every day on CNBC. Emotional Pollyannas both with few backing facts. It will be nowhere near as rosy as they say in our near future economy. Just the fact of Obama as President will be a market negative, along with the global financial crisis which hasn't even started to recover yet, perhaps hasn't even hit bottom yet. Then, there is the falling GDP, widening trade gap, higher unemployment, dead housing market, etc..... no signs of improvement.

Capitalism in Jeopardy?

The end of capitalism will come when there is no one unsophisticated left to cheat. All will know all the devices to get the money of others and thus will be impossible to cheat and then everyone will have to change to something else that might work better.

The limitless promotion of self concern as the foundation of capitalism is what will cause it to fail, as absolute brotherhood is the only thing that could ever perpetuate a right and successful human society, one that is the polar opposite of the selfish, uncaring one we have today.

Disclaimer: The above may actually turn out to be less tongue in cheek than it first appears to be.

Three Areas of Opportunity for the Bold

You have not considered all the costs involved in owning out-of-state real estate. Yes, there is the loan and insurance. What about travel costs to and from? What about local management?And maintenance for the house, barn and fencing, and probable expenses related to animal damage? Lots of fencing on horse property.

Your mgmt/maintenance expenses could eat you up if not careful. Why don't you just buy a good house in a new subdivision with a good commute to Denver and wait that out? Or, get one where you live is always best. From bad experiences, I now never buy anything over a half hour drive from home. Great advice. Take it.

Wall Street Breakfast: Must-Know News

The only thing that gives me any optimism is that when the movers and shakers that be decide to switch to an up market, it will then happen. This odd and often shocking occurance ususally happens almost to the contrary of good and practical sense, just as a move to the downside does as well.

Put in all the logic and realism and rationale you think is appropriate and then double it, but it all still moves mostly on arcane and ephemeral factors beyond the comprehension of the practical human brain. Only "those" brains who ordain these changes have a clue as to the reasons for them and they will not only continue to keep those reasons more secret than the Skull and Bones society, but they will also keep doing whatever it is they choose to do and when, and we will still sheepishly follow them every time into that perpetual dark abiss that explains nothing, nor wants to.

Sentiment Overview: Selling Pressure Still Has the Upper Hand

No buying should even be considered until the lock-ups for all hedge funds are over.

Heavy selling and a resulting volatile, down market will continue until that time, at the very least.

We as a nation are truly in for it this time.

S&P 500 Dividend Aristocrats: Withstanding the Test of Time

Way too conservative for me, and yields of only 3-6% do not compensate for the huge risks of the stock market. If I anticipated only those yields, I would keep my money in safer bonds, CDs or MMF and totally out of the market.

Being too protective guarantees mediocre overall performance.

Those Who Don't Learn from History...

All you say is good exposure info until your final statement which shows that you care more about what upsets you and when, and not enough about those ravaged human sources of OPM, most of whom are suffering badly today if not totally wiped out.

Your being upset about it is not enough if what you really want is to escape the upset it causes you instead of offering proactive suggestions for solution. Do better.

IBM Is Trading Well Below Its Intrinsic Value

This article is totally wrong in using past or even present revenue and profit estimates in valuing IBM as the estimate is distorted way upward. Nearly all stock rev/eps estimates will see some lowering due to negative fallout from the recent Wall street debacle, and some will be drastically cut and others will fail entirely.

Any thoughtful valuation must now wait for new rev/eps estimates based on the depressed economy expected to be the case for the rest of 2008 and 2009, and it will be killer bad for many and worse for others.

Buffett Likes to Be Early; Don't Rush to Follow

Warren's GE "investment" was down $152M last week but has fought back a bit. I think this one may have been a mistake buy unless Warren got some control of what is going on at GE(why not?), as since Welch left Immelt has done nothing. Of course, the genpop knows nothing of the goodies Warren may have gotten from GE other than the 10% divvie but I am so very sure he got other things too.

BTW, GE stock is at an 11 year low.