antiquecarman

What 'Wipe Out the Stockholders' Really Means

It's the CEOs and boards who got greedy for the wrong beneficiaries. Take Ken Lewis and Bank of America for example. They should know who the shareholders are: conservative people who are risk averse. So why did you take a gamble with Countrywide and Merrill Lynch? Before those two acquisitions, B of A was in pretty solid shape with relatively little exposure to the poison.

Are U.S. Home Foreclosures Caught in a Never Ending Vicious Cycle?

Comment from John Smirl, above, is very interesting. Group three he describes, "my house is under water" (but I can still make the payment) is indicative of what I consider the real underlying issue. This is a decay of morals in the US and probably other countries. We just don't honor our commitments anymore, unless it is to our advantage. Hey guys, you promised to pay the loan, period. Where is your integrity? People who can pay their loan should pay their loan. When a country's morals decay, everything else follows. History has proved that many times.

Auto Industry Watch: You Can't Get Different Results Doing the Same Thing

I think this problem was the companies doing. The contracts were legally negotiated. The union threatened to strike (sometimes did) and the companies decided it would be too expensive to call the union's bluff. Bad decision. But, whoever's fault, Mr. Wilson is correct the labor costs need to be restructured.

Doing the same thing and expecting different results is insanity. That is exactly what is happening, but it is not the car-making business that will be the same, it is the union (bailout) negotiation that is the same. We are afraid the alternative to a contract (bailout agreement with this bluffing union) will be too expensive. So we fold again and the union takes the pot, even though they do not have the best hand. Later on, we loose the whole thing again for a larger price. Insanity.

It is time to call the union bluff, and let GM or Chrysler go bankrupt. Then if the union workers want their jobs back, they can make a new contract everyone, including the bankruptcy judge thinks will work.

That will be excruciatingly painful. Just like getting off a drug habit. But you’ve got to do it if you want the monkey off your back. We Americans need to recognize this is our problem, and it is going to hurt to get it fixed.