Yeah, I have taken my share of pot-shots at Paulson for seeming like the Keystone Kops in trying to solve the current financial crisis. OTOH, no one on the face of this blue, lush planet is more knowledgeable about financial markets than P, and this includes the Clinton-retreads the President-elect has chosen for his financial team. P has thrown everything, including the kitchen sink, at the problem to little avail. [more]
OK, this is a classic case of what NOT to do. Mr. K bought F at its peak, hoping to gain control of a high flying stock in double digits. Now, that F is facing possible bankruptcy, he is selling F for less than the price of a Big Mac. Granted: he had other motives not related to daily quoted stock price. Still: he lost almost all of the money he invested. Is this smart? OK, he is a gazillionaire and I am just a working class stiff. Still: even I know that F is so dang cheap, the time to make a major buy or action to take over the company is NOW, and it won’t cost an arm and a leg, as it would have a year ago, so the risk even if you fail miserably, relatively speaking, is low. [more]
I just saw a network nightly news report that a Chinese company is ready to export all-electric cars to the US, beating out GM and friends by a few years. How so? This Chinese company is no famous, industrial powerhouse. But it does illuminate the artherialscloroses (ah, man, where's the spell checker?) of the US car companies. GM had an electric car, the EV1, until it killed it's own child and future. It does seem as if the US car companies will not fare well in the next few years. [more]
OK: the Detroit Bailout failed in the Senate. President Bush has stepped up to the plate and is working on $$$ taken from TARP. OK, granted. However: this amount of $$$ is only enough to tide Detroit for a month or two, based on the $B that Detroit is burning through PER MONTH. OK: the new president will re-issue more $$$ a couple of times. Problem: car sales have not recovered, and will not for at least another year. Now what? [more]
The esteemed president of the UAW shows signs that he finally understands the problem he faces. He has offered for UAW workers to work for nothing. Yes: finally, he has a workable solution. AND: Detroit will finally have a competitive advantage over Japanese carmakers. Auto sales will not recover for at least a year, perhaps a year and a half. If he will get his union workers to work for that period of time gratis, even I will support a massive taxpayer subsidy to Detroit and UAW; if he will kindly suspend retirement and pension benefits for that period of time, so much the better. [more]
I saw GM's 10Q. It lists $4B PER MONTH payment to pensions and post-retirement benefits. Question: of this $4,000,000,000 each and every month, how much is the UAW throwing into the pot to keep GM out of Chapter 11??
Dang: up 4% 2 days in a row, then down 5% then next. I am running out of Dramamine. What’s up with all this? I was listening to BB’s weekend program, when a caller came up with the epiphany; I paraphrase: no one knows what stocks are worth. Lightening bolt. That is so true. For example: take X. The price started to decline to the 70-90 area. Many, including CAPS members and FOOL Columnists analyzed the 10K, the growth prospects, and financial strength, and said: by golly, this thing is worth much more, perhaps even a 2-bagger. Then the stock market crashed, and it is trading at 30, give or take. [more]
A few days ago, I heard an editorial on PBS/NBR. They were wise words that are still with me, so I have decided to crib them. [more]
8Q: "General Motors Corporation: Restructuring Plan for Long-Term Viability"
Section 5.8 "Pension and Healthcare Considerations" (p.16) [more]
Yes, yes, I can sense that you are losing patience. Such monumental events, to little purpose. Some believe that motion without movement is a bad omen. Perhaps. It could also be that a small trigger will cause the effect you desire. In the meantime, suggest you enjoy an entire bag of chocolate chip cookies.