LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

GoldSeek.com to Launch New Website
By: GoldSeek.com

Is Gold Price Action Warning Of Imminent Monetary Collapse Part 2?
By: Hubert Moolman

Gold and Silver Are Just Getting Started
By: Frank Holmes, US Funds

Silver Makes High Wave Candle at Target – Here’s What to Expect…
By: Clive Maund

Gold Blows Through Upside Resistance - The Chase Is On
By: Avi Gilburt

U.S. Mint To Reduce Gold & Silver Eagle Production Over The Next 12-18 Months
By: Steve St. Angelo, SRSrocco Report

Gold's sharp rise throws Financial Times into an erroneous sulk
By: Chris Powell, GATA

Precious Metals Update Video: Gold's unusual strength
By: Ira Epstein

Asian Metals Market Update: July-29-2020
By: Chintan Karnani, Insignia Consultants

Gold's rise is a 'mystery' because journalism always fails to pursue it
By: Chris Powell, GATA

 
Search

GoldSeek Web

 
No Honeymoon As Bailout Looms

By: Rick Ackerman, Rick's Picks


-- Posted Monday, 17 November 2008 | Digg This ArticleDigg It! | Source: GoldSeek.com

Rick’s Picks

Monday, November 17, 2008

“Phenomenally accurate forecasts

 

 

Whatever illusions Americans may have about prospects for Change under Obama, they are about to be shattered by a Congressional bailout for U.S. automakers. Politics-as-usual all but guarantees that Washington will wind up throwing quite a bit more good money after bad -- not so much rescuing the car makers as postponing their day of reckoning for yet another six months, or perhaps a year or two at most. Democrats will vote overwhelmingly for the bailout, and Republicans will mostly oppose it. But in the end, General Motors, the squeakiest wheel among Detroit’s Big Three, will prevail with the argument that if Big Government does not pony up $25 billion pronto, countless jobs will be lost, along with any hope that GM, Ford and Chrysler will ever return to health.

 

 

We’re all for fairy tale endings, but we doubt that many Americans are convinced that another $25 billion, or even a $100 billion, could turn the U.S. auto business around. Whatever the sums being tossed around, they pale in comparison to the expense not only of retooling factories and paring down the work force to perhaps a third of its current size, but of re-gearing the U.S. economy so that gas-guzzling, three-ton SUVs are no longer literally what makes America run.

 

The automakers are implicitly promising that $50 billion would buy a radical shift in the way cars are designed and built. In fact, there can be no Manhattan Project for the automobile, since it’s not even clear what the goal of such a project would be. Are hydrogen fuel cells the answer? Electric cars based on a battery technology yet to be invented?  Ultra light hybrids that would be great for commuting but lousy for a family ski weekend? No single answer is likely to suffice, and that is why a solution must be achieved organically and over time, even as market variables such as energy costs, the state of the economy, and attitudes toward consumption continue to evolve.

 

Squandering Precious Capital

 

But to assume that some huge quantity of money is going to get us to the next generation of automobile is a very risky gamble indeed. The money would be much better invested in industries that can compete globally, since an America whose manufacturing capabilities are in precipitous decline can no longer afford to squander even a drop of precious capital on yesterday’s losers. To put it in another perspective, suppose Microsoft were to take its $40 billion surplus and invest it in Ford, Chrysler, and GM?  We’d think the company had lost its mind, right? And Microsoft’s shares would fall by half the next day.  If such an investment makes no sense for Microsoft, then why should it make sense for taxpayers? In fact, leaving the dollars in taxpayers hands, to invest in any way they choose, is the best way to ensure that our $50 billion, or $100 billion, eventually grows into real wealth.  To do otherwise, letting politics dictate how tens, or more realistically, hundreds of billions of dollars are invested, is to risk impoverishing our children and grandchildren with interest and principal payments that could drag on for decades.

 

***

 

December Hidden Pivot Seminar

 

Because the November 5-6 Hidden Pivot Seminar was full, we will be offering the class again on December 3-4 for $1150. The fee includes entry to weekly tutorial sessions for an entire year. For more information, click here.

 

***

 

Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2008, Rick Ackerman. All Rights Reserved. www.rickackerman.com 


-- Posted Monday, 17 November 2008 | Digg This Article | Source: GoldSeek.com




 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.