-- Posted Monday, 9 March 2009 | Digg This Article
| Source: GoldSeek.com
Rick’s Picks
Monday, March 9, 2009
“Phenomenally accurate forecasts”
As General Motors goes, so goes the nation? There was a time when this was very nearly true – never moreso than in 1955, when the company became the first to pay taxes of more than $1 billion. Now, with GM a heartbeat from flatlining, policymakers are still wrangling about the funeral arrangements. We should pay close attention to the process, since it could bring our leaders to acknowledge that it is not in the nation’s best interest to keep a failed business on a respirator, especially when doing so consumes billions of taxpayer dollars per week.
Deal forthrightly with GM and perhaps our leaders will be sufficiently emboldened to let some big banks fail. A couple of Republicans floated this idea on TV Sunday morning, and so far it appears they have lived to tell about it. We should all be heartened when such a simple and sensible idea does not provoke a firestorm on Capitol Hill. Expect the issue to resurface as soon as a seemly interval has passed to allow GM to segue into the hereafter.
Yankee Know-How
Actually, the “structured” bankruptcy that is being planned for the automaker will leave open the possibility of reincarnation. Could GM come back as a lean, mean and innovative producer of motor vehicles? You bet it could. We have never doubted that such a goal lies within the grasp of Yankee know-how. GM without the drag of featherbedding and retiree health care benefits could be delivering solar-powered cars to buyers even before the Japanese perfect hybrid technology. This, or something like it, is the answer for American car manufacturers, and the only reason they haven’t been able to accomplish it so far is that the old ways of producing had become entrenched. The unions and management can share the blame for this, but bankruptcy will allow the burden of guilt to melt away with time, especially if a born-again GM can make a success of itself.
As General Motors goes, so go the banks? We’ll find out only when they are allowed to fail. Until that time, they will remain without life or purpose, drifting like zombies between worlds.
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Rick's Picks publishes a daily trading newsletter for gold, stock, commodity, and mini-index traders 240 times per year. 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 © 2009, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Monday, 9 March 2009 | Digg This Article | Source: GoldSeek.com
