Wadhamite

Nine Reasons for Dow 6000

I would like to know if the prediction of "oil in the 20s" is an indicator of oil weakness or dollar weakness. If the latter, I understand the rise in gold. If the former, world demand has softened significantly already and OPEC will at some point cry foul. Question is, at what point . . . and another 30 to 40 percent lower than today would not look good for America.

Ford a Likely Survivor of the Auto Industry Crisis

I agree that Ford is strongest of the Detroit Three at the moment. I do wonder if that means strong enough to survive. I am a cautious optimist, seeing how Ford withstood two world wars and the Great Depression; but moving forward will be tough and Ford will need to make strategic and risky decisions at times. I'm hopeful they wil avoid government money and will prove that American capitalism ultimately will work.

As Food Costs Rise, Is Government Being Straight about Inflation?

I supppose it's relative, but some individual food prices have soared well into double-digit increases during the past year. Consumers will "shop down" in some cases, buying cheaper brands or doing without optional foods. However, snacks and fast foods still seem to be king with younger adults and kids, and it will take much steeper inflation rates to put a significant dint in those sales.

Exxon's High Valuation Is Hard to Comprehend

ExxonMobil makes 70 percent of its money outside of North America, and the economics of the world are better at the moment than the economics of America. To a substantial extent, ExxonMobil is a play on the world's overall financial strength. Remember also that Mobil has a substantial position in premium lubricants worldwide and significant plays in China and southeastern Asia. It's a pretty safe stock.

Detroit: Please Bring Back the Stripped Car

Nobody is mentioning Kia. A real bargain today. And, when China gets its act together and offers an econobox for under $10,000 -- watch out. My first two cars, back in the 1960s, were VW Beetles with two lights on the dash (make that three when the high beam indicator is included) instead of the LED Christmas trees that modern cars have. Manual transmission; crank windows; no A/C; no fog lights; no air bags (the first one did'nt even have seat belts); no computers; AM radio. I could afford to drive back then.

Toyota vs. Ford: A Modern Manufacturing Parable

I enjoyed the story, though I wonder why the race was in the U.S. and Missouri of all places.

Americans Forget High Oil Prices Too Quickly

I am awaiting the day when China produces and sells in the USA a $10,000 fuel-efficient small car. Does anyone really doubt that it will happen? When it does, the implications for "big oil" and "Detroit 3" should be obvious. And, in today's cheap-oil and auto-bailout scenario, there might be just enough time for America to beat the Chinese. If we lose this opportunity, it's gone for a long time.

General Motors Bailout: Consider Other Alternatives

Is anyone seriously asking where the federal government is getting these $50 billion automotive bailout monies? The government has no money tree, or bank account, or current budget surplus. The money is being newly created, pure fiat, no backing . . . just inflationary and postponing the problem for another generation or two. How would present-day Americans feel if they were still paying out Studebaker or Rambler?

I'm waiting for the next new car jingle . . . "You've already made the down payment; now come get the rest of your car." Unfortunately, it may be no joke.

Early Stimulus Wears Off

Does anyone have a firm number on AIG policyowners and how much loss there is per policy? Perhaps some perspective would help us react to such gut-wrenching figures.

Obviously, there has been some unrealistic pricing. Again, free enterprise should be able to solve this problem -- not government.

Why the Detroit Bailout Should Include Bankruptcy

I don't believe the demise of GM or any other automaker would drive prospective buyers away from the product due to warranty concerns. Many of us who have owned vehicles more than 10 years old have already crossed the bridge of no corporate parts support; there is almost always a good third-party network (and lots of junkyards) to fill the gap.

Bankruptcy is not necessarily a dead end. We still have K-mart stores, for example. And we still have Chrysler after their miseries. Never mind Schwinn bicycles.

The government has no money trees. When corporate America goofs, corporate America follows free enterprise.

'Big Three' Badly in Need

Sales are down -- but remember, these are subsidized sales with generous cash-backs or low-interest financings. There's not much profit in them. However, for a number of years the econo, simple car has been virtually unavailable (a la Geo Metro or even the original VW Beetle); and in a severe recession, that's the kind of vehicle consumers can afford. Even an econo box like a Smart Fortwo has multiple computers, air bags, and styling options that simply make it more expensive. I fear the day when China produces what Americans really want, at an affordable price, and clean out the market. Does anyone really doubt that it will happen?

Ford: Have You Driven a Convertible Preferred Lately?

This option sounds okay; but it doesn't do much for holders of Ford common stock, who have seen the value plummet over the past few years. An investor in common stock has little option but to hold on, since selling today would guarantee a loss. There are far more holders of common stock than this preferred. I would rather see Ford reward its common stockholders in some tangible manner -- granted, that could be tough when quarterly losses are so great.

Impending Inflation? The Global 'New Deal' All but Guarantees It

It's the "money printing" part that alarms me the most. Bottom line is, fiat currencies will wither. And, what do we carry in our wallets or store in our checking accounts? -- almost all of us?

Real value, like commodies or wealth in the ground, are fine for long-term wealth accumulation. But what about the day-to-day or month-to-month stuff? That's where the current economic crises seem to hurt the most.

Activity Update: Why I Bought Shares of Imperial Oil

Imperial Oil is a good company. It is a dominant player in Canada and, as noted, is an affiliate of ExxonMobil. I'm tempted to make a similar purchase; however, since ExxonMobil owns 60 percent, there's no real individual voting power.

Will Oil Stocks Stay This Cheap?

No, they won't stay this cheap. Buy now while they are on sale.