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Waterloo For Some American Industries

|Includes: Southwest Airlines Co. (LUV)

At the battle of Waterloo, the last line of Wellington's stood between Napoleon Bonaparte and Victory. So at six in the evening, he threw in his Home Guard, a unit of picked troops that often served as his bodyguard.The Guard advanced, advanced, and stopped, and finally was thrown back in the twilight.

"La Garde recoule" (the Guard recoils) went up the terrified cry over all of Napoleon's army. Our reserves were beaten by their reserves. What happened afterward was a foregone conclusion. 

An example of this happened recently when Southwest Airlines was accused by the Federal aviation authorities of using unauthorized spare parts on its planes. Southwest,which adroitly hedged its fuel costs at $50 a gallon a year ago, is the pick, the "Home Guard" of the airline industry. If such a company is driven by economic desperation to cut corners, imagine what is happening in the rest of hte industry.

Similar examples can be given of other American companies in other industries.

And when the cry goes up of "La Garde recoule," the next thing that is likely to follow is "sauve qui peut." (Save what you can.)