A Doo Bee

Cramer's Stop Trading! What's Good for General Motors (11/5/08)

Lovely, Bloody lovely.

Take American tax dollars and put them to work buying houses for immigrants.

Doesn't Cramer know the only reason the immigrants come is to make some money, build a bankroll, build a house in Guatemala and return there to live like kings?

I don't mind, because they work hard while they are here and provide a ready supply of unskilled labor. Is it Cramer's intention to make them dependent on the state just like the rest of America's poor?

(me thinks Cramer is looking for a place in Obama's Cabinet)

General Motors: The Next Delisting from the Dow?

For many years brand loyalty, amongst automotive consumers, was so strong that even though there were two other competitors in the field, you were virtually guaranteed that 90% of your customers would return when they needed a new car. In that environment, US auto manufacturers were almost a monopoly. Eventually the company gained a monopoly mindset.

American consumers began to change. They were more sophisticated and were more apt to choose a brand for its value than because their father chose that brand 50 years ago. This occured in the latter part of the 1960s but didn't really show itself until the jump in oil prices in the 1970s, when smaller imported cars had more percieved value because of their greater fuel economy.

Unfortunately, the monopoly mindset is not easy to change. Having worked for AT&T supporting General Motors, I was agast at the similarity of their management styles. The multiple levels of management with each inhibited to make dcisions without checking the level above; the inability of a person at one management level to consult with someone of another management level; the inabilit to bring on new projects that would save costs becasue the bean counters needed to examine every particle of dust on the contract - this was maddening.

AT&T was only able to start turning the corner after it hit bottom and was purchased by SBC. When will GM find its bottom? When will the UAW realize that it has killed the goose that laid the golden egg?

Perhaps we should allow all three US manufacturers to declare bankruptcy at the same time. This would allow each to redefine itself separately from its past, renegotiate onerous labor contracts and give them the bottom they truly need. Then they can develop a 12 step plan to lead themselves off the bottom.

Will they all climb out of this morass? Probably not. There is good evidence that a consolidation is necessary. Will Toyota buy Chrysler for the Jeep and Dodge Truck brands? Will Tata come in and buy Ford or GM? The answer is probably closer at hand than we would like to believe.

The days of the US auto maker are over. Those that survive will be those who treat the US market similarly to the international market. Should we be sad? No. What doesn't kill us makes us stronger - but sometimes we get killed.

Homeowners Feel the Pain of Over-Improvement Syndrome

You are missing the point... During a market downturn, what is often most important is how long a home is on the market. You forget that a home with the Viking stove and granite countertop, although it doesn't command a huge variation in price, will help the home sell much faster.

If I follow your reasoning, during a downturn people prefer to buy previously owned homes with Formica rather than granite. This is not true. While they might not want to pay as much of a premium for it as they once did, they will still choose the more luxurious home than the one next door with "builder's quality" finishes.

Smart flippers are having a field day purchasing distressed homes, repairing, remodeling and selling. The market is slow but it isn't dead.

I produce concrete countertops which are a notch above granite. Those with money are still spending. Those who were foolish are doomed to begin spending again when the housing downturn completes its cycle later this year.

Is the Collapsing Credit Bubble Contagious?

Weren't bankruptcy filings down for January? What is the year on year filing for February? One would expect that with home sales down and interest rates up there would be an increase of sorts but your research seems to be too near-term focused.

Novastar Financial Should Profit From Falling Rates In 2H07

Guess you blew that one.