American vision, Bailouts, Citizen responsibilty, Learn, poor leadership, World events

Detroit Auto makers can’t win even with Goverment baby-sitting

We as citizens need to learn how to identify winners in business, the companies, the technologies and the industries’ consistent performers.

A newspaper headline reports the sad story that clearly reveals signs of a pathological habit of losing as a group. Detroit and Michigan as a general population has criticized Government intervention and crusaded the values of the free enterprise system.

What is becoming clear is that they are not our best American warriors to win this economic war since their Free market skills lag far behind their political talk.

We need to focus on the many successful companies, smaller and less talked about but the hugely successful businesses such as Microwave Data Systems of Rochester, New York. Their success is not in fame but $$ and the professionalism developed by their workforce

Toyota Tops List of $$-for-Clunkers (clik 4more)

(NYT). “While American government officials hailed the month long program, which ended this week, as an overall stimulus to the economy, the biggest winner was Toyota, which accounted for 19 percent of all sales and had two of the top three best-selling models. The cash-for-clunkers program turned out to be a boon for Asian automakers and the small cars they specialize in.

The Transportation Department said Wednesday that participants in the clunkers program bought 690,000 new vehicles. About $2.9 billion of the program’s $3 billion was distributed in government vouchers, which were worth $3,500 to $4,500 toward new-car purchases.

Detroit’s three automakers — General Motors, Ford and Chrysler — accounted for 38.6 percent of the vehicles sold. That figure is substantially less than the 45 percent combined market share that the Detroit companies posted in the first seven months of the year.”

Clearly is not that they do not want to win but that they don’t know how in this new world that clearly was created with the help of greedy CEO’s.

America, greedy CEO’s do not represent nor portrait the American Free Enterprise System nor American Capitalism because they do not capitalize companies in America.

—oo000—

CHANGE=Δ

Subject Change %Change Value
DJI 4.23 +0.04% 9,543.52
NASDAQ 0.20 +0.01% 2,024.43
S&P 500 0.12 +0.01% 1,028.12
OIL -0.21 -0.29% $71.22
Gold 0.30 0.03% 945.50
Nat Gas -0.06 -2.23% 2.84
US $ 0.0004 +0.0006% 1.00
CSCO -0.07 -0.32% 22.0
YHOO -0.14 -0.93% 14.93
GOOG -3.37 -.071% 468.00
AAPL -1.99 -1.17% 167.41
MSFT -0.09 -0.37% 24.55

On the Lighter side

Once upon a time at a conference of Economists The Critical Question was asked and the results were typical it is said
Q: How many conservative economists does it take to change a light bulb?
Answer1: None. The darkness will cause the light bulb to change by itself.
A2: None. If it really needed changing, market forces would have caused it to happen.
A3: None. If the government would just leave it alone, it would screw itself in.
A4. None. “There is no need to change the light bulb. All the conditions for illumination are in place.
A5. None, because, look! It’s getting brighter! It’s definitely getting brighter !!!
A5. None; they’re all waiting for the unseen hand of the market to correct the lighting disequilibrium.

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American vision, Bailouts, World events

Saturn probable buyers

Please hover your mouse over the words and click to unfold detailed information, this method of embedding data allows for clarity and simplicity.
EQUITY INDEXES

VALUE CHANGE % CHANGE
DJStoxx 600 207.57 -4.18 -1.97
FTSE 100 4,345.47 -122.94 -2.75
DAX 30 4,900.67 -138.27 -2.74
CAC 40 3,217.41 -85.96 -2.60
S&P/MIB 19,883.00 -642.00 -3.13

Left to Buy GM’s Saturn: Penske, Black OakPartners, LLC Maybe Magna.

Why has Saturn been a troubled brand for GM? Explain to me how can the largest car maker in the world fail at selling a car at a profit. Saturn is the contender to the very profitable market of Japanese small and medium size cars especially when they are reasonably liked. There can be only one answer, GM did not want to succeed. Crazy? When you look at the company’s struggles they were mostly labor hardships not technological challenges, their foe was the unions not the limits of gas mileage, better metals or lower prices like the challenges of Intel, Apple or Sun.

GM is a company whose leadership has had one strategy: to manufacture abroad the US. The Hummer was built in South Africa, Saab in Sweden with plans to build a plant in Russia. All of that is past because we have new players.

Penske (PAG:US Penske Auto Group Inc ) Operates franchised automobile dealerships throughout the United States and the U.K.

Closed: 11.55 fell: -0.63 / -5.17% May 21 /Dividend Yield:  3.12%

compared to GM:

Closed: 1.92 rose: +0.47 / +32.41%   /Dividend Yield:  N/A

Magna ( MGA:US Magna International Inc ) Designs, develops, and manufactures automotive systems, assemblies and components, and engineers and assembles complete vehicles. The Company sells its products primarily to OEM.

Closed:  32.72 Rose:  +0.59 / +1.84% May 2    / Dividend Yield: 2.20%

Watch the price of Gold! whatz Up?

COMMODITY FUTURES

VALUE CHANGE % CHANGE
Oil 61.66 0.61 1.00
Gold 952.30 1.10 0.12
Natural Gas 3.60 -0.00 -0.08

American vision, Bailouts, Dilemas, understanding economic events, World events

Bail-inn 3d world countries or the USA

Markets

FTSE 100 3,893 -0.19% € per £ 1.07 +0.13%
DOW 7,750 0.00% $ per £ 1.46 +0.06%
HANG SENG 14,109 +3.57% ¥ per $ 98.36 +0.78%
DAX 4,238 +0.34% WTI Crude 53.61 +1.59%

It has been a while since my last post, it was difficult to write about what I saw coming down the pike without sounding sadly without any credible case. Now there is enough out there for the public to be willing to consider the drastic change in life styles and mind sets that will be needed to survive without becoming just a barely better economy than Mexico.

The fast pace in which the corruption of values and ethical standards from a critical mass of our Financial and Political leaders will require a strong public willing and ready to learn about the subject of economics and finance it is our responsibility if we do not pull ourselves by the bootstraps no one else will we the Joe Public types not Mr. Politician nor Mr. CEO

“Roughly once year the IMF, US Secretary and sometimes finance ministers of G7 countries get a phone call from the finance minister of a large emerging-market economy: …the country is rapidly running out of foreign reserves, lost access to capital markets, and that perhaps even lost confidence of its citizens. Without a large rescue loan, he country will be forced to devalue its currency and.”  This is how Mr. Roubini starts the introduction of his book “Bailout or bail-ins” co-authored with Brad Setser.

Eerily familiar, what sounds like corrupt dictators of a struggling African or Central American nation?

FT.com/ reports:  AIG paid more than $40m in controversial retention bonuses to staff at its troubled financial unit in December, three months ahead of schedule, according to the resignation letter of an executive at the insurance group.

News of the decision to pay bonuses of $165m to staff at AIG sparked political outrage and protests in the US Congress, after the insurer was bailed out with $173bn of public money last year. Before the publication of the letter, momentum on draconian legislation to claw back bonuses had begun to slow.

Jake DeSantis, a manager in AIG’s Financial Products unit, said AIG “accelerated by three months [the payment of] more than a quarter” of the $165m of retention bonuses due to the division’s employees.

The President of the USA will arrive in Europe for a summit hosted by British Prime Minister Gordon Brown, while ”

European Union politician on Wednesday slammed U.S. plans to spend its way out of recession as “a way to hell.”

Czech Prime Minister Mirek Topolanek, whose country currently holds the EU presidency, told the European Parliament that President Barack Obama’s massive stimulus package and banking bailout “will undermine the stability of the global financial market.”  Reported by Fox News

Will the strongest currencies dominate what may become the UN of finance and will that nation be China? Just consider:

China’s central bank yesterday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the International Monetary Fund.

In an essay posted on the People’s Bank of China’s website, Zhou Xiaochuan, the central bank’s governor, said the goal would be to create a reserve currency “that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies”. Reported by FT.com

But no matter what we will make it through, believe that work hard like you mean it, have a good day no matter what

RedSerpent

Bailouts, Citizen responsibilty, Uncategorized

More $$2 bailout more jobcuts?

redserpent@wordpress.com:
Secretary of Treasury Geithner announced in his first day that Banks will need $4 “Trillion” because they do not have enough capital … Hey we’ve known that for a while now! everything we have bought in the last 20 years has been pretty much borrowed in other words we have not had real money to save in banks for some time now.
Just remember that as long as we do not manufacture products here at home then every penny the Fed prints will go out of the US not savings therefore no money into banks. Have you seen the many cities that China has built? many and all paid cash and they are still sitting on a pile guess where that cash came from? you got it, US
How did this all happen, WHO made the wise decision? Not some poor Mexican sitting in Tijuana. He did not walk into a corporate boardroom and demanded Hey send your jobs to Tijuana because I want to work for 6 months and then retire for life with that itty bitty money.
WHO then: American CEO’s …think who else?
WHY: CEO’s(which is not the same as the free market system nor are they the corporation) kept saying for decades that what is good for the shareholders is good for America.
WHO ARE THE SHAREHOLDERS? Well the CEO’s of course that is how they get paid, they usually are among the strongest shareholders. Regardless of profits or sales if laying off workers sends the share prices up, there will be layoffs. Before arguing with this statement go to the library and study and research it yourself because you can do it, you are capable of it, you don’t have to call some talk show host to do the thinking for you. I know you got intellectual balls, use them.
Think: If cheaper workforces was good for the shareholder why don’t they hire cheaper CEO’s from Mexico and China at a 1/20th the price? Chinese, Korean , Japanese, Indian CEO’s are doing very well so is Mexican Carlos Slim the 2nd richest man in the world.
Let me paint the picture:
55,000 to 76,000 jobs cut in single day, coincidence?
Home Depot: 7,000 cut because they are not selling as much “Made in China“ products.
GM: 2,000 cut jobs, they just got bailed out and lookey here!
Caterpillar: 20k \ Proxy Mining: Caterpillar Chief Made $17M in 2007, Possibly Half That This Year reports NYT–>In 2007, its chief executive J.W. Owens received:
– a base salary of $1.5 million
– a bonus of $300,000
– stock awards totaling $918,626
– option awards totaling $7.1 million
– non-equity incentive plan compensation* totaling $4.4 million
– change in pension value and non-qualified deferred compensation** totaling $2.6 million
– other compensation*** totaling $221,307

Total: $17.1 million, up from $14.8 million in 2006.
Texas Instruments: 3.4k \ Fourth-quarter sales fell to $2.49bn, or 8 cents a share, below analyst estimates of 11 cents. Quarterly profit fell to $107m from $756m a year ago …still $100million+ profit!

Pfizer: 19.5k after takeover of Wyeth.
My roommate has a serious illness 2 weeks ago she went to fill her prescription for 30 days and the tab the pharmaceuticals demanded: $1,200.00( that is right 30 days). My roommate is not the only one in America using Pharmaceuticals.

Sprint-Nextel: will cut 8,000 to save $1.2b Even when its stock is rising \$35bn merger[Dan Hesse ceo-] \\ cut 4k last year now has 56k. Also stopped matching 401k
AT&T plans to cut 12k[approx. 4%]Sprint the company had a cash balance of $4.1b after paying debts in 2008 claims lost $1.8bn to AT&T and Verizon. They are laying off people with a cash balance of $4,000,000,000+ in their coffers

Why do I write this?
The objective is to spark the fire of curiosity to learn for one self (every one of us) to develop the courage to learn about economics and money matters and business management, we have to.
I BELIEVE THAT THE REASON WHY (we the working class)GROUPS SUCH AS THE UNIONS FAILED SO DEFINITELY IS BECAUSE THEY GOT EDUCATIONALLY COMPLACENT. Made the same mistake that Native Americans did 100 years ago, they signed a paper. Yes Unions signed a paper agreement with management and figured that all they had to do is work hard and mind their own business. Live and let live. Did not fare well to butt heads.
When it came to understanding the big financial picture we got out maneuvered by more nimble management that capitalized in a changing culture and country. But this is another story for another time.
Never did I want to care for the evil journeys of money …I was wrong all I did was neglect my understanding of the society in which we all live AND WHAT MAKES IT TICK. I’ve now learned that is my duty to educate myself in these matters. And incite you all to do the same, we all can because is the only peaceful way out my friends. The Only one.
It is a beautiful day to be a student today.

To Thy Own Self Be True.

American vision, Bailouts, Leadership, Uncategorized

3 days after The Bailout

Oct8 TheFall Aftert The Help:

 

I must clarify that am new at this and recently began to learn about the Market. I have written several posts already in this Blog, however I did not present the goals and vision statement of the RedeSerpent Blog. The Vision Statement will be located in the updated first post: “Hello a new world perspective”. It is a new world perspective because it will challenge me and the readers, I hope, to see the world with new eyes from the angle of ‘Our Paycheck’ and years ago it became clear how pervasive was Wall Street in the performance of my job meaning being laid off because the CEO is trying to protect the Investors. I have struggled to communicate to my peers that it is the process of maximizing profits from the Shares Market Value that has the biggest impact in our paychecks, quality of available parts in manufacturing, choices of design to implement and `many other aspects important to the vitality of Quality in Manufacturing. CEO’s easily bamboozle employees with a language foreign to the rank and file employee that sounds like Chinese: “Finance-ereese” heavy with the Wall Street dialect.

Well the failure of executives is exposed their denial persists. Mr. Sullivan was grilled by Congress this week for their dismal performance at AIG. After being shamefully humiliated with a Bailout They Spend over $400,000.00, tax money to pamper themselves like rich old women, certainly the code of the Samurai(remember Xerox’s book) did not apply to these frugal bunch that are looking out for financial welfare of the Investors. All of their talk cannot be hard over the loud hypocritical behavior

Came to the realization that this was the weakest point of my knowledge, global,affairs, the US economy and the main force that drives business decisions in the US to lay off workers, and the main reason why US legacy products have poor quality. and understanding of my financial welfare which is close to zero, zero is good, is Zen monk like. For years I have meditated and pursued a spiritual frugality of leaving no tracks behind. Well soon I discovered Sasquatch was following me, I could see the footprints behind me.

It was clear urgent that I would begin my education on this area, this is what this blog will reflect in part and in part how this affects our lives

 

Thursday October 09’08 7:00 am

DAX 5038.38 [+24.76 /// +0.49%]

Nikkei 9,157.49 [-45.83] /// -0.5]

FTSE 4420.72 [+54.03 /// +1.24%]

 

closed Wednesday October 8-’08

DJI:9258.10 [-189.01///-2.00%]
Nasdaq Composite 1,740.33 [-14.55///-0.83%]

SPDR S&P 500 ETF (AMEX:SPY) 97.51 [-2.52 /// -2.52% ]

WTI CRUDE FUTURE (USD/bbl.) $89.240 [+0.290 /// +0.33%]

GOLD 100 OZ FUTR (USD/t oz ) $887.2 [19.300 /// 2.13%]

WHEAT FUTURE(KCB) (USd/bu.) $649.500 [+11.5 /// +1.80%]

 

 

closed Tuesday Oct 7 ’08:

DJI: 9447.11 [ -508.39 /// %]; NASDAQ [1754.88 [-108.08 /// %]

Au(gold): [ /// %]; Ar(silver): [ /// %]AA

 

The 3d Day after the bailout, Wednesday October 8, the S&P falls bellow 1,000 points falling 5.7 %

US CDs: 5.58 [1 mo]; 5.44 [6 mo]; 6.51 [12 mo]

EURO CDs: 5.15 [1 mo]; 5.44 [6 mo]; 5.5 [12 mo]

US Libor: 3.93 {overnight]; 4.14 [1 mo]; 4.01 [6 mo]; 3.9 [12 mo]

Euro Libor: 4.48 [overnight]; 5.16 [1 mo]; 5.43 [6 mo]; 5.48 [12 mo]

from www.ft.com/bonds&rates ////.

Libor rates from www.bba.org.uk //