epeon

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    • Wed Dec 3rd 10:17 AM
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      Rating: +1 0
      Commented on:
      GM: In the Ballpark, But Not in the Game
      Where was the UAW sacrifice? the jobs bank program? thats it? No cut in pay, benefits, retirement programs (e.g. 30 and out)?
      View article »
    • Sun Nov 30th 22:59 PM
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      Rating: 0 0
      Commented on:
      A Modest Proposal For The U.S. Auto Industry: Stop Building Cars
      This outsourcing of manufacturing is a typical B-school idea. And, it works, for a time. For example, RCA (which invented TV) outsourced the manufacturing of components to Japanese firms in the 50s. Eventually, the outsourced the manufacture of the entire TV set. Of course, RCA does not even exist in this business anymore. I could mention dozens of other industries. Outsourcing is the last stage of a company that cannot compete and it does it just before it goes out of business.

      Trust me, at some point, Dell will be gone, too.
      View article »
    • Wed Nov 26th 11:00 AM
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      Rating: +1 0
      Commented on:
      Has General Motors Earned a Bailout?
      Whether GM has earned a bailout or not is largely irrelevant. What really matters is that if we give GM $25 or $50 billion are we going to be in the same position a year or two down the road? In other words, is giving money to GM the equivalent of throwing money into a rathole?

      Given GM's current cost structure, it is hard to see a viable path forward. GM is basically paying $30/hr for labor more then the transplants when fully amortized (including legacy costs). This is a significant cost advantage which will simply, at some point, push GM back to bankruptcy's door again. So, the only finanical sense to make of this is that GM has to lower its cost structure to that of the transplants. Otherwise, giving them money just puts off the inevitable.
      View article »
    • Tue Nov 25th 14:01 PM
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      Rating: 0 0
      Commented on:
      The Insurance Industry's Invisible Meltdown
      Well, what can I say, I bought at $6 and wrote the covered call at $7.5. LNC is now almost $9. So, people who buy this low are going to make serious money. LNC does not need a bailout. It just needs people to see the bargain it is.

      Damn, sure wish I hadn't wrote that covered call at $7.5
      View article »
    • Tue Nov 25th 09:57 AM
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      Rating: +1 -2
      Commented on:
      Detroit's Big Three and the Democrats' Economic Illiteracy
      You are wrong. The transplants have defined contribution plans (i.e. 401(k) with match). Firing a worker for retirement reasons makes no sense in their economic model and, therefore, they don't do it.


      On Nov 25 08:27 AM By all Means wrote:

      > lazaris
      > actually no. The transplants drop kick their workers for dubious
      > offenses just before they are elgiable to retire and thereby negate
      > their entitlements. Now there havent been many retirees from transplants
      > but there have been enough side stories to indicate that what I have
      > said is true. Just like Honda made the OSHA dirty dozen list for
      > working their US workers to death (literally) Just go google it (OSHA
      > dirty dozen)
      View article »
    • Tue Nov 25th 09:50 AM
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      Rating: 0 0
      Commented on:
      GM Releases Tiger, Lowers Expenses
      You have to admit this, Tiger is one smart cookie. GM may be cutting him loose as an economy move but he doesn't bad mouth anyone at GM. He walks out classy. And, if the economy improves, GM will have every reason to make a deal with him in the future. Smart.

      Also, anyone else who wants to do an endorsement with Tiger knows that if it goes south, he doesn't bad mouth them at the end of the deal.
      View article »
    • Tue Nov 25th 09:46 AM
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      Rating: 0 0
      Commented on:
      The Insurance Industry's Invisible Meltdown
      Let the market correct itself. For example, LNC was down to $6/share and I decided to buy it. Why not, I sold the covered call at $7.5 for the middle of December for $1.30. These kind of bargains will attract buyers and the market will correct.
      View article »
    • Wed Nov 19th 08:12 AM
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      Rating: +1 0
      Commented on:
      Paulson's Message to Detroit: Drop Dead
      Bailing out the big 3 by giving them cash is like bailing out an alcoholic with vodka. The big 3 are not businesses, they are social institutions designed to maximize employee returns, not stockholders and nor customers. And, that is the problem. Until these companies are fundamentally restructured, meaning that the UAW contracts are relegated to the dustbin of history, these companies will not be profitable. Giving them money will only delay the inevitable, it will not prevent it.
      View article »
    • Thu Nov 13th 09:22 AM
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      Rating: +2 0
      Commented on:
      Could Capital Injections Save the Auto Industry?
      Restructuring GM and F? Isn't that what chapter 11 is all about? If you give them $25 billion without restructuring, all you are going to do is to reward their current, clueless behavior. I believe that they have to go into chapter 11 first before you give them any money. Otherwise, you will just be throwing good money after bad.
      View article »
    • Wed Nov 12th 08:10 AM
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      Rating: 0 0
      Commented on:
      DHL, GM: Does Failure Have Consequences?
      It is interesting that the government is calling for executive bonus limits and nothing else. The generous retirement and health plans for the rank and file are not mentioned. Gee, could it be that the government (i.e. soon to be completely democrat controlled) does not want to do anything that might be negative for the UAW?

      Of course, by not making the UAW cut anything, all they are going to do is to insure that about a year down the road GM will need more money, and then a year down the road some more money, and then another year down the road.....

      The current structure of GM is unsustainable. I agree that Waggoner and the board need to go. They presided over this mess and there does need to be consequences. However, unless you tear up the union contracts, there will be no longterm fix.
      View article »
    • Mon Nov 10th 11:01 AM
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      Rating: +8 -1
      Commented on:
      Should We Really Bail Out the Big Three Automakers with $73.20 Per Hour Labor?
      As far as the big 3 paying $70/hr who cares? They simply put it into the price of the car and the consumer has to pay for it. Except, oooppps, the consumer isn't paying for it are they?

      The root of the problem is that the big 3 are not making vehicles that the consumer is willing to pay for. Some of this is price, but a lot of it is quality. I had a disucssion with a salseman at best buy and it went like this:

      "So, what kind of car do you have?" I asked.

      He said, "I own a Honda civic."

      "You don't own a domestic?"

      "I have a 2001 mercury cougar. I loan it to my brother. I couldn't keep it on the road, it kept breaking down."

      "Is your Honda good?"

      "Oh yeah, the Honda is perfect."

      "So you wouldn't consider a domestic?"

      "No, their just nightmares. My Honda is solid, so when it is time to buy another car I'll just get a Honda."

      "I'm told that the domestics are better, now"

      He shrugged his shoulder, "Maybe, but why take the chance? The Honda's are good."

      and, by the way, this kid is about 30. He basically will never even consider a domestic. Basically, the big 3 have soured their customer base. They aren't coming back. That is the real problem.
      View article »
    • Mon Nov 10th 08:52 AM
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      Rating: 0 0
      Commented on:
      Ford, GM Conference Calls: Same Problems, Different Outlook
      I was in best buy yesterday and I was talking to a relatively young salesman. We were talking about this and I asked him, "what kind of a car do you have?"

      He said, " I have a Honda civic."

      "Did you consider a domestic?"

      He said, "I have a 2001 Mercury cougar. Can't keep it on the road. Still have it, but it is very unreliable. The Honda never fails."

      "So", I said, "you basically won't even look at a domestic anymore?"

      "Yeah, that's pretty much the way it is, I guess. I can't deal with the maintenance problems. Domestic cars are just awful."

      As I walked away, the thought that occurred to me was this: here you have a best buy manager/salesman who is I would guess 30 and he is now never going to consider a domestic. Honda took care of him and they have a loyal customer. In the final analysis, all of this liquidity stuff is really just a symptom of the problem. You don't take care of your customer and they go away. No matter how much you try to convince them you now have the quality religion, a car is such a big, but infrequent purchase that customers just are not going to take the chance.
      View article »
    • Mon Nov 10th 08:45 AM
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      Rating: +1 0
      Commented on:
      Don't Let Bulk Shippers Sink Your Portfolio... For Now
      The problem I have with an article like this is that the bad news is already in the stock. Take DSX. It is currently at 14 and pays over 25% dividend. Of course the market is saying the dividend is not sustainable. That is why the price is so low. But, so what? Let us say that the dividend gets cut 30%. It goes to 17%? This is still a great investment. Even if it gets cut in half, still pretty good.

      So, the question to me is this: not where DSX has been, but where is it going? And, frankly, this article does not answer that at all.
      View article »
    • Wed Nov 5th 09:10 AM
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      Rating: 0 0
      Commented on:
      Eight Monthly High-Yield Dividend Stocks
      you have to be very careful about these recommendations. For example, HGT pays 13.2% but that is based on earnings over the last several months in which crude was high. Very unlikely to see that going forward.

      Also, these are trusts which means that there yield of crude, over time, is going down.
      View article »
    • Wed Nov 5th 08:17 AM
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      Rating: +1 -1
      Commented on:
      The Perversion of American Capitalism
      I believe the author totally misunderstands the dynamic nature of capitalism. Yes, the US does not do the manufacturing that it once did. This was not a plot or moral failing, rather it was the invevitable consequence of a world in which semi-skilled labor is cheap. How can you do labor intensive manufacturing in the US when you can find Chinese to do it for $1/hr?

      This, of course, will change over time. If the US model does not work, then US labor rates will go down (probably via devaluing of the US dollar versus Chinese currency). Then labor intensive manufacturing in the US will make economic sense.

      As far as the welfare programs, etc. Again, when the costs become apparent, we shall see.
      View article »