Sunday, November 16, 2008

Auto Industry Bailout

Anyone that opposes the bailout needs to go back to elementary school. It's amazing how ignorant the U.S. population has become. Or, at least those living in Arizona and posting comments on www.azcentral.com. Americans are very simple minded. The vast majority vehemently oppose bailouts for large corporations and favor reduced taxes for the poor and middle class. As mentioned in an earlier post, what good is tax relief for the masses if there are no jobs pay your salaries. We are already seeing the impact on a smaller scale. Major electronics retailers are closing their doors as well as other big box specialty stores. DHL is beginning cutbacks which will more than likely lead to a buyout. All around us, the economy and those that create it are collapsing. The theory that the economy can be stimulated from the bottom up holds as much water as a kitchen strainer.

Barack Obama needs to focus on education. Today's children are tomorrow's future. Seeing Generation Y in mainstream population has now become a scary reality. These children have no ethics, no morals, and no sense of self-worth. These are the children of the Breakfast Club. Generation X has a little more intelligence, however many of them over extended themselves during the housing boom and now blame the lenders. Perhaps, better education can prevent future generations from becoming the failures of today.

General Motors needs to cut Buick, Pontiac, Hummer and Saab from their lineup. The focus needs to be on a solid core of vehicles which can turn the greatest profits. Buick is a dying breed. Young people of today will not purchase a Buick even with Tiger Woods for a spokesman. Pontiac is just a Chevy with a face lift. There is no vehicle that needs to bear the Pontiac moniker. A Chevy badge will do just fine. The days of Hummer for the public are over. It began it's life as a military vehicle, and it will end it's life in the same fashion. Who buys a Saab? During my entire life, I have known only one Saab owner. You see the cars on the road, but you never know the owners. My guess, they are all Saab employees.

Ford Motor Co. When will you end production on the Ranger? You haven't change the style in 20 years, and yet you still produce these. Is there some 3rd World country that buys these things? Like Saab, I have only known a handful of Ranger owners. Re-style, or toss that from your lineup. Same goes with the Econoline van. The high schools around the country are still driving the same one's they bought 30 years ago. Therefore, you can't be selling too many of these a year. The Ford Taurus needs to go. Your Taurus crowd is getting older and making more money now. They don't want the Taurus anymore. Younger people don't want a "Taurus". Who do you plan on selling this car to? The Mustang is great as long as you keep it fresh every five years. Otherwise, buyers will flock to newer designs with more to offer. The Microsoft Sync was a good attempt. However, you could have done much better. I see Dodge offers Wi-Fi. Do your cars still have cassette players? Or even better, just an AM/FM radio for the entry level models? Give people more and they will become loyal. How about free navigation service for 3 years. Bluetooth? USB for the stereos? Look at current technology and see how your car's stack up. People like convenience. Either conform, or just go away. All I have to say about Lincoln is this. How many units do you sell versus Lexus, Acura, BMW, or Mercedes for the same segment? What is the average age of the Lincoln consumer versus the others? Lincoln is the same as Buick, a dying breed.

Dodge, you get the thumbs up. You are appealing to grass roots America that wants to buy American. You bring out vehicles that people like. The resale value says otherwise, but your vehicles are selling. The fascinating part about Dodge is that anything with an R/T badge is driven by people aged 18 to 80. Dodge, keep rockin!

Russian & Military Diplomacy

Perhaps one of the greater goods that may come with the new administration will be rebuilding a weakened relationship with the Russians. Though many Americans agree with a Bush/McCain stance involving a strong military presence, such actions only seem provoke anger amongst countries with different political agendas. Starting a new cold war is perhaps one of the single largest mistakes that a new U.S. president can make. Instilling fear amongst Americans about if and when a nuclear attack may occur accomplishes nothing except for removing the faith of your people.

Barack Obama can choose two paths. He can either lead with his beliefs, or lead with the beliefs of those who command the U.S. Armed Forces. To choose the latter will certainly lead to his eventual downfall. Placing warships in the Mediterranean and missile sites along the border of Russia were not wise decisions. For every action, there is a reaction and Russia is responding. Russia has not brought any threats against the U.S., why must we.

Removing our troops from the Middle East is not admitting defeat. It's simply creating a new plan which can be far more effective than the current. Pulling troops back allows the opposition to move forward. If they do not fear the open land, they will surely enter it. Once your opponent comes out into the open, a swift and mighty air strike will bring them down in greater masses. Ground forces can then be deployed to surround the enemy and close in quickly to prevent them from hiding in the mountains once again. Let the mouse out of its hole.

Thursday, November 6, 2008

What Happened?

Photo Courtesy:http://www.coxandforkum.com/

During these times of economic turmoil, the impossible just happened. A handsome man with a great smile gained the support of the nation. His name, Barack Obama. A man with relatively minimal national political experience triumphed to victory on November 4th, 2008 by defeating the more experienced John McCain.

How did this happen? The answer is quite simple. Barack Obama, said all the right things. Obama appealed to the hearts of the poor and middle-class American citizens. Things like; Health care for everyone, Reduced taxes for the working class, A better economy. He attacked big business and the wealthy. John McCain's pitfalls were Sarah Palin, Age, Health Issues, and a lack of a explaining a solid plan for a recovering economy. In the end, Barack Obama was simply the better showman. A grand performer of sorts. A musician that hit all the right notes for an American audience that fails to comprehend the meaning of a symphony. Economic turnaround is not an easy task. The road to recovery will not be accomplished by playing a banjo to an economy that requires an orchestra. Barack Obama either fails to see the requirements, or simply put on a performance that was only meant to live out his short term goal. Once in office, he will find that his promises better come to fruition, otherwise he will have to deal with an angry nation. A nation that championed the need for change.

Barack attacked McCain for his support of George W. Bush. During many occasions, Obama likened a McCain administration to the one currently in place. John McCain did what every good soldier should do. He supported his Commander in Chief. McCain voted for the bills that his leader supported. Those are the form of ideals that every solid American citizen should follow. Stay true to those who lead you unless the decisions being made are for selfish reasons. Otherwise, the results are anarchy and rebellion. How will Barack fare if his appointed cabinet does not agree with him. Will he publicly state that opposition within his party is ok? For a member of his own party to challenge his decisions are welcomed? Somehow, I think not.

The young Democrats of today will be tomorrow's Republicans. An honest income and education will enable them to make more informed decisions. Attempting to stimulate an economy by taking away the credits for the job provider's and putting it into the hands of the job seekers will be a tough lesson for them to learn. A healthy dose of real America (not under their parent's roof or in a college dorm), will force them to understand the workings of society. Unfortunately, parties every night and discussing philosophy in your pajamas at 2pm are not commonplace in the working world. Yes, you will finally apologize to your parents for being right.
To the poor and ignorant middle-class. Here's a little elementary school math that I hope you should understand:

1) Barack wants to use government funds to give health care to everyone. This costs money. Money which will more than likely need to be borrowed from someone else. That is called debt.

2) Barack wants to cut taxes for the poor and middle-class. If he gives it to you, then he must make up by taking it from someone else. If he borrows from another country, that is called debt. If he takes it from the rich (your employers), they will take it from you in the form of reduced wages, or possibly letting you go. The rich could also increase the costs of their goods or services which are then passed along to you the consumer.

3) Real estate and foreclosures. Money which will need to be borrowed to bail out those of you who overbought during the housing boom. First of all, what were you people thinking? You bought a house that you could not afford. Sure, the lenders "qualified" you, but did you people not do your own math to see that the payments would be impossible for you to make? Now, you're blaming the lenders? I suppose it's always easier to blame someone else rather than account for your own actions. That's typically the reply when people get caught looting during riots. "I seen someone else do it, so I though it'd be ok" is the typical response when they get caught.

The American's that voted based upon an Obamany are in for a rude awakening. Wall Street financial analyst's have already done their homework and know the truth. Yes, financial professionals, not day trading politicians. As American's, all we can do now is hope that once the smoke and mirrors disappear from The Greatest Showman for November 2008, common sense will settle in and he will address the nation with honesty and empathy with the true path to recovery.