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GM-扶不起的阿斗 May 16, 2014

Posted by hslu in Obama, stocks.
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Obama gave GM union billions of our tax dollars and bassically nationalized the bankrupted car company in the height of financial crisis. The once mighty car company was run to the ground by incompetent management and over compensated union workers. GM simply couldn’t compete with Japanese and Korean car companies like many other industries in the US. GM should be allowed to bankrupt but Obama and Democrats couldn’t let that happen. They need union votes. So, what did Obama and Democrsts did? They bought union’s votes using our money instead of their own money. This was and still is how politics is done in the US.

So, what do we get now? The same lousy company before the financial crisis with millions of cars being recalled these days. It’s like a 扶不起的阿斗。

The company is likely guilty of purposely hiding the defects from consumers and millions of Americans have bought their cars without being warned.

Hope you didn’t buy a GM car since 2008.

Of course, the big question now is: will you or will you not buy GM at current price of about $34?

The answer is simple: No.

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GM stock as of 5-16-2014.

A, B and C? January 18, 2011

Posted by hslu in China, Cold War, Economics, Global Affair, jobs, Politics.
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Remember what I said about AB and C?

A is Airbus.

B of course is Boeing.

And C of course is China’s C919’s built by Commercial Aircraft Corporation of China.

C919 is a single-aisle airplane for mid-range flights. It is designed to carry about 200 passengers.

Watch out, Airbus and Boeing. This market is yours to lose.

One industry at a time, China will eat American’s lunch.

http://www.nytimes.com/2011/01/18/business/global/18plane.html?_r=1&emc=tnt&tntemail1=y

As President Hu begin his visit to the US, many companies want to do business with China because that’s where the money is.

Free market capitalism is what US has been promoting all over the world for the past 3 or 4 decades. If the US is not careful, this premier industry will face significant competition just like the auto industriy have been facing for the past 30 years. GM, Chrysler and Ford were thoroughly defeated bhttps://hslu.wordpress.com/wp-admin/post.php?post=4745&action=edit&message=6y auto companies from Japan and Korea. Although these companies have been able to survive the Great Recession so far with government intervention, India’s Toto and China’s auto companies are waiting to enter the US market when the time is right.

Twenty or thirty years from now, where will Boeing be? Will Boeing’s labor union be the last straw that breaks the camel’s back?

GM Stocks, anyone? November 19, 2010

Posted by hslu in China, Economics, Global Affair.
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Well, the Chinese government likes it because 18% of the GM IPO were bought by them.

At $35 a share, the IPO generated about $20 billion and the Chinese government’s share was $3.6 billion, about 13% of of US’s trade deficit with China in August, 2010.

Obama GM recalls and Congress should call an inquiry August 17, 2010

Posted by hslu in Congress.
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I thought Obama General Motor Company has changed from a company building crappy cars to a new company building nothing but top quality cars with no defects.

Well, GM has just announced calling in 240,000 more cars to fix seat belts after 1.5 million recalls in June.

Should Congress look into GM’s conduct?

Tree huggers should buy GM VOLT July 29, 2010

Posted by hslu in Economics, Energy, Global Warming, Obama.
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GM’s behind-the-scene CEO Obama should issue an executive order to ask every self-proclaimed tree hugger to purchase a new VOLT from Obama Motor Company. The price tag: $41,000. However, the tree huggers pay $33,500. We pay for the other $7,500 in the form of tax credit. With the purchase of the new VOLT, the tree huggers will get a bumper sticker which says: “A die-hard tree hugger on board”

Why not? It protects the environment and it gets excellent “gas mileage.”  Even though you only get 40 miles per charge and the VOLT takes 3 to 4 hours to recharge, you are making a statement. And more importantly you are using other people’s money to make the statement.

You do have a gasoline-powered engine under the hood if you want to go further.

We may need to build more coal-fired power plants if there are  too many VOLTs on the road. But that’s someone else’s problem.

What if BP can’t afford $20 Billion? June 27, 2010

Posted by hslu in Economics, Energy, Global Affair.
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Fannie Mae and Freddie Mac lost billions of dollar and did tremendous damage to the economy. Many people lost their jobs and billions of dollars of wealth evaporated. There was no mention of having Fannie and Freddie set aside $20 billion to pay for the damage.

Major Wall Street firms and AIG caused world wide financial crisis but there is no mention of asking them set aside $20 billions to pay for the damage and paying people for lost wages.

GM and Chrysler ran themselves to the ground and caused pain all over the United States. There is no mention to ask them set aside $20 billion to pay the guys who worked in car dealers.

What if BP is a small independent company and has no ability to pay for the damage? The company will most likely declare bankruptcy and walk away from the disaster.

Will the federal government step in and pick up the tab like they did for the other companies?

What PIGS and American Auto Union have in common? May 23, 2010

Posted by hslu in China, Economics, Global Affair, jobs, Politics.
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What happens in Europe now has already happened in American Auto Union

The left-leaning governments across Western Europe including France and PIGS countries have built a generous socialized system for over half a century. Workers in public and private sectors alike enjoyed month long paid vacations, retired near 50 years old, protected by national health care systems and lived on welfare benefits on the backs of younger workers. The socialism model has created two or three generations of lazy workers who sipped coffee and read newspapers on the jobs, went home early in the afternoon and retired early to enjoy their fat pensions. The comfortable living style was made possible because European countries spent very little on national defense because it was paid for by the United States during Cold War. The laid back mind set created a socialized system which was ill-prepared to compete with capitalism embraced by Americans and lately by millions of Chinese.

Now let me ask you a question: have you seen this drama unfolding before?

The question is yes; in American’s Auto Unions of GM, Ford and Chrysler. These companies went belly up because the union workers got lazy and couldn’t compete with workers from Japan and lately Korea. Union’s bloated salaries, fat pensions and generous health benefits did them in. Their laid back business model couldn’t produce cars wanted by the consumers. As a result, these companies went belly up and required billions of tax dollars to bail them out. Now that these companies’ loans have been restructured, number of workers reduced, workers’ salaries modified and health benefit slashed, we’ll see how good their cars are. They will enjoy a period of growing market shares thanks to troubles at Toyota. But the real test is in the market place where consumers will always choose by their feet. It will take five to 10 years to see how big a dent GM and Ford will be able to make in Toyota’s reputation.

Now let’s go back to the sorry states European countries found them in.  Since socialism is no longer working, western European countries have to adapt drastic measures to cut government spending, reduce public workers salaries, increase their work hours, reduce their health benefits, raise retirement ages and reduce pensions of younger workers. The governments have to borrow billions to avoid bankruptcy in the short term and tighten their bellies to pay for the debts. The leaders of these governments have to take steps to change the structural disadvantage of their country in order to compete with developing countries in the world market. The reform will be difficult to take but it is a necessary pill if these countries want to avoid high unemployment rate or rising deficits. If they don’t, they will gradually become dying states and suffer lower living standards for decades to come.

Who would you say was responsible for the crisis in these European countries?

My answer is China.

China’s rising from Communism and embracing Capitalism opened the door of opportunity for trillions of dollars in the world market. Huge sums of capital left these European countries in droves and went to where they were treated the best, China, since 1993. As a result, thousands of plants all over the world were forced to shut their doors which took jobs away from the less competitive countries and transferred them to China instead.

During the process of global wealth transformation, countries which have other means to generate revenues, such as oil exporters in the OPEC and countries with natural resources, were less affected because of the rising commodity prices.

It will be interesting to see how long China can maintain its growth pattern with protectionism popping up all over the world led by the United States.

I suspect that this is not the end of the chapter yet.

Chinese like to say 三十年河東, 三十年河西 ”san1 shi2 nian2 he2 dong1 san1 shi2 nian2 he2 xi1.” The drama just got interesting and 好戲還在後面呢 “hao3 xi4 hai2 zai4 hou4 mian4 ne3.”

Please enjoy the show. I know I’ll have a good time watching this show unfolding.

Japanese lost face in front of Americans March 5, 2010

Posted by hslu in Economics, Global Affair, Politics.
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Toyota officials were grilled by U.S. Congress in front of national TV audiences. They had to admit their guilt and apologize for their sins to U.S. law makers who treated them like criminals. The next time they are on the hot seat, the U.S. law makers will ask them to cough out the profits they made from the American people.

I wonder what ordienasry Japanese people think about their high level officials losing face in a foreign country? Will they stop buying America goods? Will the Japanese government stop buying so much American Bonds in the future? What was the reaction in the Japanese media to this national disaster?

Toyota sales in the U.S. was down by 7%. It may go down even more in the coming months.

GM and Ford will for sure benefit from all these public bashing and the Union workers will be the happies people in this drama. Toyota plants may have to promise hiring Union workers for this to stop.

Who will be the one with the last laugh? Will Japanese people take this to their hearts and start making even better cars and beat GM and Ford in the market place?

Now that Japanese engineers may have to face U.S. law makers in the next run of inquiry.

I feel sorry for these poor engineers already. They have the pleasure to defend the indefensible.

Has GM, Ford or Chrysler faced the same type of congressional investigation before? I remembered seeing many recalls from U.S. car makers in the past too.

Poor Japanese!

I wonder what XB’s friend in Japan thinks about this?

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