What is “Normal”?

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”?

Unemployment Map of U.S.

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.

The Madoff Economy..

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..

I’m just sayin’…real reason Ford’s not taking FedGov $

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 $

Surprise: Bush sort of does the right thing for GM/Chrysler

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

Industry Matters: Why Chap 11 Bankruptcy Won’t Help GM

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