Cassandra of Cassandra Does Tokyo has an excellent post about "what's normal in the economy"? I've also observed the same phenomenon: lots of people (IMHO, the majority right now) still think this downturn is just a temporary cyclical event. In a few months they think things will turn around ("they always do" they keep saying!) … Continue reading What is “Normal”?
Here's a link to a state-by-state unemployment map of the U.S. Krugman observes that there's a "slump belt" running from the Great Lakes down through Georgia & South Carolina. This is also the heavy auto manufacturing region. He also observes that the highest unemployment states aren't necessarily the same states that had the highest run-ups … Continue reading Unemployment Map of U.S.
Courtesy of Paul Krugman. He's starting to get at the core issues. I'll discuss more in future posts, but for now ponder: The Madoff Economy, by Paul Krugman, Commentary, NY Times: The revelation that Bernard Madoff — brilliant investor (or so almost everyone thought), philanthropist, pillar of the community — was a phony has shocked … Continue reading The Madoff Economy..
Ford's talking about the future marketing benefits of not taking the Federal Govt bridge loans like Chrysler and GM. Yeah, that's true and possible - there probably could be a small market share gain to be had eventually by being the US automaker that "pulled itself up by it's bootstraps". But there's probably another reason. … Continue reading I’m just sayin’…real reason Ford’s not taking FedGov $
I'll admit I'm surprised. My inner cynic suspected the Bush administration would try a pre-packaged Ch. 11 bankruptcy for GM or Chrysler, or that they would dither and play Hamlet so long that the Chrysler, GM, or some big Tier 1 would end up in bankruptcy anyway for Christmas. Instead, GM/Chrysler get their bridge loans. … Continue reading Surprise: Bush sort of does the right thing for GM/Chrysler
The NFL should watch out. Armchair quarterbacking while watching football on TV is being challenged by a new couch potato activity: armchair management. It seems that nationwide people, pundits, Wall Street analysts, and even U.S. Senators have the solution for GM and the U.S.-headquartered auto industry: file chapter 11 bankruptcy and "re-structure". It worked for … Continue reading Industry Matters: Why Chap 11 Bankruptcy Won’t Help GM