Posts filed under “Think Tank”

Taking Responsibility

This message says a lot about our need to stand up and be responsible.

This is one of the greatest responses to the requests for bailout money I have seen thus far.

As a supplier for the Big 3, this man received a letter from the President of GM North America requesting support for the bail out program. His response is well written, and has to make you proud of a local guy who tells it like it is.

According to Snopes (urban legend debunkers)This letter and Mr. Knox are real

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This is GM’s letter:

Dear Employees & Suppliers,

Congress and the current Administration will soon determine whether to provide immediate support to the domestic20auto industry to help it through one of the most difficult economic times in our nation’s history. Your elected officials must hear from all of us now on why this support is critical to our continuing the progress we began prior to the global financial crisis.

As an employee or supplier, you have a lot at stake and continue to be one of our most effective and passionate voices. I know GM can count on you to have your voice heard.

Thank you for your urgent action and ongoing support.

Troy Clarke
President,
General Motors North America

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Response from:
Gregory Knox, Pres.
Knox Machinery Company
Franklin, Ohio

Gentlemen:

In response to your request to contact legislators and ask for a bailout for the Big Three automakers please consider the following, and please pass my thoughts on to Troy Clarke, President of General Motors North America.

Politicians and Management of the Big 3 are both infected with the same entitlement mentality that has spread like cancerous germs in UAW halls for the last countless decades, and whose plague is now sweeping this nation, awaiting our new “messiah,” Pres-elect Obama, to wave his magic wand and make all our problems go away, while at the same time allowing our once great nation to keep “living the dream.” Believe me folks, The dream is over!

This dream where we can ignore the consumer for years while management myopically focuses on its personal rewards packages at the same time that our factories have been filled with the worlds most overpaid, arrogant, ignorant and laziest entitlement minded “laborers” without paying the price for these atrocities. This dream where you still think the masses will line up to buy our products for ever and ever.

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Category: Bailouts, Think Tank

U of Michigan Confidence

With the week beginning with a much better than expected May Conference Board consumer confidence # led by the future expectations component, followed by Wednesday’s 2 point drop in the weekly ABC poll, today’s final May U of Michigan confidence # was a touch better than expected at 68.7 and up from the preliminary reading…Read More

Category: MacroNotes

Ben Frankenstein and his hunchbacks

In response to the sharp selloff in US Treasuries and MBS over the past week two weeks, Ben Frankenstein and his hunch back assistants, I mean Ben Bernanke and the Fed, are doing some PR to tell the world that their grand experiment of asset purchases is not going awry but is a reflection of…Read More

Category: MacroNotes

Q1 GDP revision

Q1 GDP was revised to a decline of 5.7%, an improvement from the initial reading of -6.1% but a touch weaker than the forecast of -5.5%. A downward revision to personal consumption to 1.5% from 2% was offset by a slightly less than expected drop in gross private investment, exports and a less of a…Read More

Category: Economy, MacroNotes

Even Minsky Would be Shocked at This “Moment”

Good Evening: U.S. stocks rose today, as some well spun economic data and an upward reversal in Treasury securities combined to support the major averages. Though durable goods orders and jobless claims came in “better than expected”, the news behind the headlines was less than reassuring. And though it didn’t seem to affect the bank…Read More

Category: Markets, Think Tank

New Home Sales

April New Home Sales, a measure of contract signings for the purchase of new homes, totaled 352k annualized, 8k less than expected and March was revised down by 5k to 351k. However, months supply fell to 10.1 from 10.6 and it’s the lowest inventory relative to sales since Feb ’08. The absolute # of homes…Read More

Category: MacroNotes

data

Initial Claims totaled 623k, 5k less than expected but last week was revised up by 5k to 636k, so a push. Continuing Claims continued higher and rose to a new record coming in 43k more than estimated. The claims data continues to be influenced by the goings on in the auto sector both in terms…Read More

Category: MacroNotes

Equity returns/REAL vs NOMINAL

With the possibility of inflation finally on many investor radar screens and certainly in the context of the current era of quantitative easing, looking at the current equity rally in terms of inflation is an important perspective in determining what was real and what was inflation induced. At 900 in the S&P 500, we’ve seen…Read More

Category: MacroNotes

Meet the new regulator, Mr. Market

A new regulator has come to Washington, DC to oversee the Fed and the political class to make sure they abide by certain constraints. His name is Mr. Market (thank you legendary investor Ben Graham for the metaphor) and he is finally speaking up and has a very large presence. As with many govt actions…Read More

Category: MacroNotes

Rising Interest Rates Finally Start to Matter

Good Evening: After months of seeing equities get most of the headlines, the Treasury market has elbowed its way back into the spotlight during the past week or so. Today this attention reached a fever pitch, as yet another steep drop in long dated government bond prices finally started to impact not only the wire…Read More

Category: Markets, Think Tank