ATLBob's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/23057/comments http://seekingalpha.com/article/170231-cit-the-fleecing-continues?source=feed#comment-738369 738369 Sat, 31 Oct 2009 11:08:50 -0400 http://seekingalpha.com/article/155662-the-volt-may-put-general-motors-in-the-driver-s-seat-again?source=feed#comment-629726 629726 Fri, 14 Aug 2009 10:13:36 -0400 http://seekingalpha.com/article/145839-have-we-forgotten-that-savings-is-a-good-thing?source=feed#comment-566907 566907
Certainly,( in the short term) the opportunity cost of increased savings has been a reduction in the rate of discretionary spending; however, I think that in the long term, increased personal savings helps form a much more solid foundation for the economy, vs. an economy supported by unsustainable HELOC and credit card spending.

In time, we'll see that those who always saved will spend once they've determined that they are in need of a particular good or service.

Those who are new to saving will likely be paying-down debt, perhaps establishing an emergency fund, and will start to give serious thought about what they need vs. what they want before they run out to buy that new toy.

Those who fail to learn the lessons from personal deficit spending via HELOC's and credit cards will find it more and more difficult to fund their purchasing whims, but some will find a way.

In any case, the economy will eventually win.


]]> Mon, 29 Jun 2009 10:37:55 -0400
Certainly,( in the short term) the opportunity cost of increased savings has been a reduction in the rate of discretionary spending; however, I think that in the long term, increased personal savings helps form a much more solid foundation for the economy, vs. an economy supported by unsustainable HELOC and credit card spending.

In time, we'll see that those who always saved will spend once they've determined that they are in need of a particular good or service.

Those who are new to saving will likely be paying-down debt, perhaps establishing an emergency fund, and will start to give serious thought about what they need vs. what they want before they run out to buy that new toy.

Those who fail to learn the lessons from personal deficit spending via HELOC's and credit cards will find it more and more difficult to fund their purchasing whims, but some will find a way.

In any case, the economy will eventually win.


]]> http://seekingalpha.com/article/145927-paul-volcker-the-voice-in-the-wilderness?source=feed#comment-566805 566805

On Jun 29 07:41 AM Alan Young wrote:

> Mark, you've got to stop with the "money doesn't grow on trees" line.
> We all know that money grows in Fed computers, which require much
> less input (land, water, energy) than trees.
>
> Aside from that, thanks for another powerful piece of history.

Yes: the money does 'grow' from the Fed and is not harvested from trees: however, one can safely say that this particular crop of money has been highly fertilized by the legislative and executive branches.

Nice article, by the way.]]> Mon, 29 Jun 2009 09:48:42 -0400

On Jun 29 07:41 AM Alan Young wrote:

> Mark, you've got to stop with the "money doesn't grow on trees" line.
> We all know that money grows in Fed computers, which require much
> less input (land, water, energy) than trees.
>
> Aside from that, thanks for another powerful piece of history.

Yes: the money does 'grow' from the Fed and is not harvested from trees: however, one can safely say that this particular crop of money has been highly fertilized by the legislative and executive branches.

Nice article, by the way.]]> http://seekingalpha.com/article/143965-berkshire-hathaway-options-trading-could-facilitate-speculative-behavior?source=feed#comment-553924 553924
"I'll never understand why TRADERS always seem to invent new ways to lose money when the old ones worked just fine". (With apologies to Wells Fargo's Chairman Richard Kovacevich who said this about bankers)]]> Fri, 19 Jun 2009 11:44:49 -0400
"I'll never understand why TRADERS always seem to invent new ways to lose money when the old ones worked just fine". (With apologies to Wells Fargo's Chairman Richard Kovacevich who said this about bankers)]]> http://seekingalpha.com/article/141778-behavioral-thoughts-on-home-buying?source=feed#comment-535684 535684
I think you're on track with the exceptional opportunity and favorable price concept, and that the buyers are planning to stay there for awhile (shelter) or they are longer-term speculators (not flippers) who can afford to wait for the real estate market to appreciate The reality is that sellers discovered in a most painful way that you can lose money on anything (including real estate) if you can't afford the luxury of waiting for the time when it's recovered its value.
]]> Sun, 07 Jun 2009 11:07:10 -0400
I think you're on track with the exceptional opportunity and favorable price concept, and that the buyers are planning to stay there for awhile (shelter) or they are longer-term speculators (not flippers) who can afford to wait for the real estate market to appreciate The reality is that sellers discovered in a most painful way that you can lose money on anything (including real estate) if you can't afford the luxury of waiting for the time when it's recovered its value.
]]> http://seekingalpha.com/article/135069-earnings-preview-disney?source=feed#comment-490237 490237
We noticed significantly more litter throughout the parks, and the restrooms, entrances to rides/exhibits, and general pedestrian areas were less clean than they were the last time we visited three years ago. There was a time when you were waiting in line and looked up and around, you noticed how clean, dust free and polished everything was--this is no longer the case in Orlando. The amount of gum on the ground was testimony to the hygiene habits of the guests as much as it was evidence that Disney's cast has stopped caring about creating that "special" experience. There seemed to be fewer people assigned to keep the park clean, and those we saw actually cleaning up were much slower, older and acted like they were less concerned with sweeping up and more concerned about punching out for the day. The second area of concern was the general attitude and demeanor of the cast members themselves, with the exception of those who were actually engaged in some sort of performance activity. Whenever we interacted with a cast member who was selling, serving, directing on/off a ride, or giving directions, we wondered what had happened to all of the smiles, positive attitudes and the willingness to convey that they would do almost anything to ensure that your visit was memorable and special? It was almost as if we were visiting some other Mega Amusement park and not in the Disney we have always loved during our previous visits.

I understand that Disney is subject to the same economic and cost cutting stress as every other business during a recession (perhaps more due to the limited discretionary capital available to most families today) and I wouldn't presume to tell them how to crunch the numbers within their operations. I would suggest that, if Disney truly wants to continue to 'market the magic', they should consider cutting costs from operations that don't directly impact the guest experience at their theme parks.

I'm hoping that last weeks experience was simply collateral damage resulting from the recent decision that "...reorganized many behind-the-scenes operations at its U.S. theme parks due to the recession. Redundant operations were streamlined, and voluntary buyouts and layoffs at the U.S. parks division shed about 1,900 employees." If so, Disney can certainly correct these guest experience weaknesses and return to their previous place on top of the Theme Park world. ]]> Tue, 05 May 2009 11:07:03 -0400
We noticed significantly more litter throughout the parks, and the restrooms, entrances to rides/exhibits, and general pedestrian areas were less clean than they were the last time we visited three years ago. There was a time when you were waiting in line and looked up and around, you noticed how clean, dust free and polished everything was--this is no longer the case in Orlando. The amount of gum on the ground was testimony to the hygiene habits of the guests as much as it was evidence that Disney's cast has stopped caring about creating that "special" experience. There seemed to be fewer people assigned to keep the park clean, and those we saw actually cleaning up were much slower, older and acted like they were less concerned with sweeping up and more concerned about punching out for the day. The second area of concern was the general attitude and demeanor of the cast members themselves, with the exception of those who were actually engaged in some sort of performance activity. Whenever we interacted with a cast member who was selling, serving, directing on/off a ride, or giving directions, we wondered what had happened to all of the smiles, positive attitudes and the willingness to convey that they would do almost anything to ensure that your visit was memorable and special? It was almost as if we were visiting some other Mega Amusement park and not in the Disney we have always loved during our previous visits.

I understand that Disney is subject to the same economic and cost cutting stress as every other business during a recession (perhaps more due to the limited discretionary capital available to most families today) and I wouldn't presume to tell them how to crunch the numbers within their operations. I would suggest that, if Disney truly wants to continue to 'market the magic', they should consider cutting costs from operations that don't directly impact the guest experience at their theme parks.

I'm hoping that last weeks experience was simply collateral damage resulting from the recent decision that "...reorganized many behind-the-scenes operations at its U.S. theme parks due to the recession. Redundant operations were streamlined, and voluntary buyouts and layoffs at the U.S. parks division shed about 1,900 employees." If so, Disney can certainly correct these guest experience weaknesses and return to their previous place on top of the Theme Park world. ]]> http://seekingalpha.com/article/132965-capital-one-defies-even-constanza-logic?source=feed#comment-476994 476994 Sat, 25 Apr 2009 11:01:14 -0400 http://seekingalpha.com/article/131107-first-american-and-first-national-no-housing-boom-necessary?source=feed#comment-465045 465045 Thu, 16 Apr 2009 10:29:21 -0400 http://seekingalpha.com/article/125242-cramer-s-mad-money-buy-bank-of-america-3-10-09?source=feed#comment-421983 421983
Between all of the emotional, bipolar rants on government policy or pleas to buy/sell a particular position or a particular industry, Cramer often discusses some informative and educational investing and trading concepts that can be helpful to those with limited financial experience.

Watch Cramer for the entertainment value and the occasional financial lesson, but don't base investing decisions on what he says. By the time a particular stock is praised or reviled by Cramer, the time to act has generally already passed and the audience needs to remember 'caveat emptor'.

Accept him for what he is (entertainer, educator and trader) and make your own informed, researched investment decisions and only take the risks that are appropriate for your financial position, goals and timeframe. ]]> Wed, 11 Mar 2009 13:34:02 -0400
Between all of the emotional, bipolar rants on government policy or pleas to buy/sell a particular position or a particular industry, Cramer often discusses some informative and educational investing and trading concepts that can be helpful to those with limited financial experience.

Watch Cramer for the entertainment value and the occasional financial lesson, but don't base investing decisions on what he says. By the time a particular stock is praised or reviled by Cramer, the time to act has generally already passed and the audience needs to remember 'caveat emptor'.

Accept him for what he is (entertainer, educator and trader) and make your own informed, researched investment decisions and only take the risks that are appropriate for your financial position, goals and timeframe. ]]> http://seekingalpha.com/article/125140-learning-from-buffett-quotes?source=feed#comment-421945 421945
These must be great times for all of the Buffett bashers, who always seem to crawl out from under a rock on those rare occasions when Berkshire hits a bump in the market. Just like the talking heads in the media, the bashers gleen a phrase or two from the annual letter and then interpret and spin them to show that Berkshire has lost its edge and/or that the buy and hold philosophy is no longer valid.

Unfortunately for the bashers (and fortunately for those of us who are long on Berkshire and Buffett) Buffetts investment philosophy has consistently proven itself over time, a track record that is likely to continue.]]> Wed, 11 Mar 2009 13:01:56 -0400
These must be great times for all of the Buffett bashers, who always seem to crawl out from under a rock on those rare occasions when Berkshire hits a bump in the market. Just like the talking heads in the media, the bashers gleen a phrase or two from the annual letter and then interpret and spin them to show that Berkshire has lost its edge and/or that the buy and hold philosophy is no longer valid.

Unfortunately for the bashers (and fortunately for those of us who are long on Berkshire and Buffett) Buffetts investment philosophy has consistently proven itself over time, a track record that is likely to continue.]]> http://seekingalpha.com/article/125306-s-p-500-5-days?source=feed#comment-421925 421925
If you're a trader, I guess that the current 'conventional wisdom' that says to sell the pops and buy the drops must still apply.

If you're an investor, this chart suggests remaining on the sidelines until the market determines if we're approaching a real bottom, or if this is just another dead cat bounce.



]]> Wed, 11 Mar 2009 12:46:14 -0400
If you're a trader, I guess that the current 'conventional wisdom' that says to sell the pops and buy the drops must still apply.

If you're an investor, this chart suggests remaining on the sidelines until the market determines if we're approaching a real bottom, or if this is just another dead cat bounce.



]]> http://seekingalpha.com/article/124566-johnson-johnson-dividend-stock-analysis?source=feed#comment-417198 417198
Buffett remarked in his recent letter to shareholders that he had sold JNJ reluctantly, in order to use the cash to take advantage of another lucrative investment opportunity.]]> Sat, 07 Mar 2009 11:35:59 -0500
Buffett remarked in his recent letter to shareholders that he had sold JNJ reluctantly, in order to use the cash to take advantage of another lucrative investment opportunity.]]> http://seekingalpha.com/article/124593-gm-s-next-last-chance?source=feed#comment-417194 417194
In every case, there was the usual gloom and doom from the media, lots of foot-dragging, hand-wringing and pontificating from congress and the executive branch, but ultimately some entities were sacrificed on the public alter after some definitive action was finally taken. This generally resulted in the termination of the entity and perhaps a 'purp walk' for a few well-deserved individuals. Banks that went belly-up during the S & L crisis, Enron, WorldCom, etc. all come to mind.

Today it looks like GM, Chrysler, AIG, and Citigroup would appear to be the among the most likely/deserved candidates for sacrifice via a structured bankruptcy process, with the possibility of restructure and rebirth into some smaller form that is able to function and compete without a government handout.]]> Sat, 07 Mar 2009 11:32:53 -0500
In every case, there was the usual gloom and doom from the media, lots of foot-dragging, hand-wringing and pontificating from congress and the executive branch, but ultimately some entities were sacrificed on the public alter after some definitive action was finally taken. This generally resulted in the termination of the entity and perhaps a 'purp walk' for a few well-deserved individuals. Banks that went belly-up during the S & L crisis, Enron, WorldCom, etc. all come to mind.

Today it looks like GM, Chrysler, AIG, and Citigroup would appear to be the among the most likely/deserved candidates for sacrifice via a structured bankruptcy process, with the possibility of restructure and rebirth into some smaller form that is able to function and compete without a government handout.]]> http://seekingalpha.com/article/123798-wall-street-breakfast-must-know-news?source=feed#comment-410958 410958
On Mar 03 09:25 AM know nothing wrote:

> "You cannot legislate the poor into freedom by legislating the wealthy
> out of freedom. What one person receives without working for, another
> person must work for without receiving. The government cannot give
> to anybody anything that the government does not first take from
> somebody else. When half of the people get the idea that they do
> not have to work because the other half is going to take care of
> them, and when the other half gets the idea that it does no good
> to work because somebody else is going to get what they work for,
> that my dear friend, is about the end of any nation. You cannot multiply
> wealth by dividing it."]]> Tue, 03 Mar 2009 09:55:26 -0500
On Mar 03 09:25 AM know nothing wrote:

> "You cannot legislate the poor into freedom by legislating the wealthy
> out of freedom. What one person receives without working for, another
> person must work for without receiving. The government cannot give
> to anybody anything that the government does not first take from
> somebody else. When half of the people get the idea that they do
> not have to work because the other half is going to take care of
> them, and when the other half gets the idea that it does no good
> to work because somebody else is going to get what they work for,
> that my dear friend, is about the end of any nation. You cannot multiply
> wealth by dividing it."]]> http://seekingalpha.com/article/123423-why-did-buffett-cut-positions-in-jnj-and-pg?source=feed#comment-409450 409450
Basically, Cramer says that it's OK for him recommend that we buy or sell anything at anytime as often as we want, but Buffett should buy and hold every US based equity forever, regardless of the opportunity cost.]]> Mon, 02 Mar 2009 11:35:11 -0500
Basically, Cramer says that it's OK for him recommend that we buy or sell anything at anytime as often as we want, but Buffett should buy and hold every US based equity forever, regardless of the opportunity cost.]]> http://seekingalpha.com/article/122787-as-gm-goes-so-goes-the-nation-part-2?source=feed#comment-404586 404586
I don't think the United States will see the 'bottom' of the current recession/stock market deterioration, and begin the journey to serious recovery until companies like GM are forced to face the same reality that other (smaller) businesses face when they continue to make poor business decisions and lose money on a consistent basis: bankruptcy and a reorganization plan or termination of the business.

While the complexity and consequences of bankruptcy will be painful in the short run, it should ultimately allow the best managed and most financially fit companies to thrive and stop subjecting the taxpayers of the country to the death of a thousand paper cuts.

There are consequences for actions and as long as our government continues to artificially prop up poorly managed, unprofitable entities like some of our car makers and banks, the lines will continue to form at the trough for taxpayer sponsored bailouts.

]]> Thu, 26 Feb 2009 11:48:30 -0500
I don't think the United States will see the 'bottom' of the current recession/stock market deterioration, and begin the journey to serious recovery until companies like GM are forced to face the same reality that other (smaller) businesses face when they continue to make poor business decisions and lose money on a consistent basis: bankruptcy and a reorganization plan or termination of the business.

While the complexity and consequences of bankruptcy will be painful in the short run, it should ultimately allow the best managed and most financially fit companies to thrive and stop subjecting the taxpayers of the country to the death of a thousand paper cuts.

There are consequences for actions and as long as our government continues to artificially prop up poorly managed, unprofitable entities like some of our car makers and banks, the lines will continue to form at the trough for taxpayer sponsored bailouts.

]]> http://seekingalpha.com/article/121774-please-gm-don-t-slit-your-own-throat?source=feed#comment-397821 397821
Perhaps it's time for GM to declare bankruptcy, reorganize with fewer brands, fewer employees, fewer dealers, new union agreements and new management and see if they can build great cars that allow them to compete and thrive in the world marketplace. At least we'd bear the pain relatively quickly and could begin moving forward: either with them as viable competitive entities or without them. ]]> Sat, 21 Feb 2009 13:02:12 -0500
Perhaps it's time for GM to declare bankruptcy, reorganize with fewer brands, fewer employees, fewer dealers, new union agreements and new management and see if they can build great cars that allow them to compete and thrive in the world marketplace. At least we'd bear the pain relatively quickly and could begin moving forward: either with them as viable competitive entities or without them. ]]> http://seekingalpha.com/article/121384-buffett-s-new-moats-nrg-energy-nalco?source=feed#comment-395234 395234

On Feb 19 11:13 AM Did U Think The Ponzi Scheme Would Last? wrote:

> Well it's about time for Buffet to get some new moats because his
> a$$ is sinking fast in the old ones.


There always seems to be an endless supply of people who opine that Warren Buffet and Charlie Munger have "lost it", or that they aren't in touch with the way the markets work today. When Berkshire didn't participate in the 'dot-com' frenzy a few years ago, they were called dinosaurs until the 'dot-coms' became 'dot-bombs' and self-imploded. Warren and Charlie have certainly made some mistakes in the past and will likely make more; however, when all of the day traders and shorts have crashed and burned once again, Berkshire will still be standing. ]]> Thu, 19 Feb 2009 12:17:34 -0500

On Feb 19 11:13 AM Did U Think The Ponzi Scheme Would Last? wrote:

> Well it's about time for Buffet to get some new moats because his
> a$$ is sinking fast in the old ones.


There always seems to be an endless supply of people who opine that Warren Buffet and Charlie Munger have "lost it", or that they aren't in touch with the way the markets work today. When Berkshire didn't participate in the 'dot-com' frenzy a few years ago, they were called dinosaurs until the 'dot-coms' became 'dot-bombs' and self-imploded. Warren and Charlie have certainly made some mistakes in the past and will likely make more; however, when all of the day traders and shorts have crashed and burned once again, Berkshire will still be standing. ]]> http://seekingalpha.com/article/121440-berkshire-testing-november-lows-already-down-17-ytd?source=feed#comment-395210 395210
(The following is from "The Black Swan: The Impact of the Highly Improbable", By NASSIM NICHOLAS TALEB)

"A Black Swan (and capitalize it) is an event with the following three attributes.

First, it is an outlier, as it lies outside the realm of regular expectations, because nothing in the past can convincingly point to its possibility.

Second, it carries an extreme impact.

Third, in spite of its outlier status, human nature makes us concoct explanations for its occurrence after the fact, making it explainable and predictable. "


]]> Thu, 19 Feb 2009 12:02:46 -0500
(The following is from "The Black Swan: The Impact of the Highly Improbable", By NASSIM NICHOLAS TALEB)

"A Black Swan (and capitalize it) is an event with the following three attributes.

First, it is an outlier, as it lies outside the realm of regular expectations, because nothing in the past can convincingly point to its possibility.

Second, it carries an extreme impact.

Third, in spite of its outlier status, human nature makes us concoct explanations for its occurrence after the fact, making it explainable and predictable. "


]]> http://seekingalpha.com/article/120522-microsoft-retail-effort-don-t-try-to-be-apple-cool?source=feed#comment-388397 388397 Sat, 14 Feb 2009 10:27:27 -0500 http://seekingalpha.com/article/119393-job-losses-problems-with-the-pelosi-graph?source=feed#comment-382377 382377 FUD) in order to justify their spending objectives . I'd like to give President Obama the opportunity to bring some serious change to Washington; however, with both parties perpetually mired in partisan tactics and posturing it will take more than stirring rhetoric to get the job done.]]> Tue, 10 Feb 2009 11:15:32 -0500 FUD) in order to justify their spending objectives . I'd like to give President Obama the opportunity to bring some serious change to Washington; however, with both parties perpetually mired in partisan tactics and posturing it will take more than stirring rhetoric to get the job done.]]> http://seekingalpha.com/article/115310-morningstar-s-biggest-error-the-perils-of-youth?source=feed#comment-359865 359865
If it was easy to do, we'd all be a lot wealthier and wiser.]]> Mon, 19 Jan 2009 11:11:58 -0500
If it was easy to do, we'd all be a lot wealthier and wiser.]]> http://seekingalpha.com/article/111667-good-regulation-requires-good-regulators?source=feed#comment-335051 335051
1) self-regulation is not an adequate internal control, and

2) anyone who thinks it is doesn't belong in a position responsible for enforcement.

Although many will do the right thing and embrace/abide by the regulations/internal controls, there will be always be some who ignore regulations unless they are prevented from doing so or detected when they cross the line. I also agree that "...Mr. Cox appears never to have embraced or understood his enforcement responsibilities or the SEC’s role to protect the public", and I'm stunned that he's been able to keep his job in the face of such ineffective performance.

The job of a regulator isn't significantly different from that of an auditor: you first need to understand what the controls/regulations are supposed to be, then you perform tests to see that these have been followed by those who are being regulated. There is an old audit saying that goes something like this...'you don't get what you EXPECT, you get what you INSPECT..."
]]> Sun, 21 Dec 2008 12:25:24 -0500
1) self-regulation is not an adequate internal control, and

2) anyone who thinks it is doesn't belong in a position responsible for enforcement.

Although many will do the right thing and embrace/abide by the regulations/internal controls, there will be always be some who ignore regulations unless they are prevented from doing so or detected when they cross the line. I also agree that "...Mr. Cox appears never to have embraced or understood his enforcement responsibilities or the SEC’s role to protect the public", and I'm stunned that he's been able to keep his job in the face of such ineffective performance.

The job of a regulator isn't significantly different from that of an auditor: you first need to understand what the controls/regulations are supposed to be, then you perform tests to see that these have been followed by those who are being regulated. There is an old audit saying that goes something like this...'you don't get what you EXPECT, you get what you INSPECT..."
]]> http://seekingalpha.com/article/111374-ceg-parts-with-buffett-without-shareholder-approval?source=feed#comment-333293 333293
Disclosure: long BRK]]> Thu, 18 Dec 2008 13:55:33 -0500
Disclosure: long BRK]]> http://seekingalpha.com/article/106153-stop-the-bail-outs-i-want-to-get-off?source=feed#comment-307957 307957
Political pandering aside, the new administration should not entertain any sort of bail-out for automakers, since it would only enable the continued ineptitude of Detroit and delay the inevitable. I suggest that chapter 11 bankruptcy/reorganizat... may be a painful but proper long term solution for the sustained viability of American automakers, providing that they are willing to make the changes to compete in the global economy.

The big 3 automakers problems stem from their historically inept management, failure to re-tool and innovate, and union-driven legacy costs. The big 3 can't do anything without approval of the unions, who have essentially emasculated management.

Anyone remember the 1970's and the oil embargo? Gas prices climbed radically, shortages were everywhere, and long-lines were the rule whenever you were lucky enought to find a station that actually had gasoline. American automakers talked the talk about transitioning from huge, gas-guzzling V-8's to higher quality, fuel-effecient vehicles, but they never walked the walk: they failed to deliver on their promise in any meaningful way. They made token improvements while foreign automakers offered effecient/quality/high MPG products and grew marketshare at the expense of the 'big 3'. They watched as the Japanese, German, and Korean automakers opened factories in the US and made effecient, quality cars here using American workers. Fast forward to 2008 and look around at any parking lot or look around on the interstate, and what do you see? Tons of bulked-up, gas-sucking big 3 SUV's and pick up trucks.

Einstein once said that to continue to do the same thing repeatedly and expect a different result was the definition of insanity. If the new administration and Congress provide a bailout for Detroit, then we'll know that Forrest Gump's Momma was right: Stupid is as stupid does.


]]> Mon, 17 Nov 2008 11:49:15 -0500
Political pandering aside, the new administration should not entertain any sort of bail-out for automakers, since it would only enable the continued ineptitude of Detroit and delay the inevitable. I suggest that chapter 11 bankruptcy/reorganizat... may be a painful but proper long term solution for the sustained viability of American automakers, providing that they are willing to make the changes to compete in the global economy.

The big 3 automakers problems stem from their historically inept management, failure to re-tool and innovate, and union-driven legacy costs. The big 3 can't do anything without approval of the unions, who have essentially emasculated management.

Anyone remember the 1970's and the oil embargo? Gas prices climbed radically, shortages were everywhere, and long-lines were the rule whenever you were lucky enought to find a station that actually had gasoline. American automakers talked the talk about transitioning from huge, gas-guzzling V-8's to higher quality, fuel-effecient vehicles, but they never walked the walk: they failed to deliver on their promise in any meaningful way. They made token improvements while foreign automakers offered effecient/quality/high MPG products and grew marketshare at the expense of the 'big 3'. They watched as the Japanese, German, and Korean automakers opened factories in the US and made effecient, quality cars here using American workers. Fast forward to 2008 and look around at any parking lot or look around on the interstate, and what do you see? Tons of bulked-up, gas-sucking big 3 SUV's and pick up trucks.

Einstein once said that to continue to do the same thing repeatedly and expect a different result was the definition of insanity. If the new administration and Congress provide a bailout for Detroit, then we'll know that Forrest Gump's Momma was right: Stupid is as stupid does.


]]> http://seekingalpha.com/article/105513-insider-buying-at-corning-stock-shouldn-t-go-much-lower?source=feed#comment-304160 304160
I've been long GLW for years and will continue to pick up shares while prices are on sale.

]]> Wed, 12 Nov 2008 12:15:34 -0500
I've been long GLW for years and will continue to pick up shares while prices are on sale.

]]> http://seekingalpha.com/article/98303-the-blue-chip-cycle?source=feed#comment-271873 271873 Thu, 02 Oct 2008 14:29:54 -0400 http://seekingalpha.com/article/97575-i-m-speechless-palin-on-the-bailout?source=feed#comment-266808 266808 Sat, 27 Sep 2008 10:56:21 -0400 http://seekingalpha.com/article/97276-the-buffett-bump-fast-money-recap-9-24-08?source=feed#comment-266130 266130
Since I'm long BRK, it's certainly a good sign.

]]> Fri, 26 Sep 2008 13:25:13 -0400
Since I'm long BRK, it's certainly a good sign.

]]>