On Sep 17, 2008, at 9:01 AM, Jones Beene wrote:
snip
Had GM fired Lutz-the-Putz years ago, back when he was strongly
dissing the Prius and spouting the gas-guzzler SUV spiel (epitomized
in the Hummer, Suburban, Yukon, Escalade etc. legacy -- which is the
Lutz legacy of 10 mpg) ... and instead had put a man of vision in
his place - the Volt (which is a great leap forward) would already
be seen on our roads as frequently as the Prius -- and GM would not
be facing bankruptcy due to investment in these dinosaurs -- which
they can hardly give away these days. Peter Principle at work.
Well jones, you can see the basic financial philosophy at work here
and in the mortgage industry. Yeas ago, the US moved from being based
on rational long term investing to short term advantage to the
stockholders of corporations. Lutz was simply playing by the rules.
The Hummers et al. were selling well at that time. He could not risk
making less money in the short term to gain advantage in the long
term. That would have made Wall Street mad and he would have been
kicked out then. Thanks to the way our system is now structured, we
are destined to pass through these booms and busts as the results of
short term decisions must be corrected by obvious consequences. Any
attempt to change the system is considered unAmerican. This process
will slowly weaken the US with respect to countries that take a longer
view and eventually we will drop to the bottom of the pecking order.
The present situation may be the start of such a slide. Unfortunately,
the general public, which is the only force that can counter Wall
Street, is too ignorant to have any effect. They will simply go down
with the ship, as the passengers always do, while the captain and crew
take to the life boats.
Ed
Jones
