Next Up for Some Bailout Money…Detroit!

Posted on November 10th, 2008 in Uncategorized by Karl

The latest group coming to Washington looking for a bailout is the Detroit automakers.  GM, Chrysler and Ford are all losing money at record pace and (some say) at risk of bankruptcy.  The Obama administration has a huge dilemma on its hands – what to do about one of the most uncompetitive industries in America?  (And if they save Detroit, when will the bailout madness end?  What about the airlines?  They need help too.)

The reality is that GM, Ford and Chrysler may be “too big to fail”, and Washington may have no choice but to step in and save the autos.  Not doing so would be politically, economically, and strategically unimaginable.  However, I would challenge Washington only to use taxpayer money to bail out the industry if it demands that real, strategic change is made to get the US auto manufacturers competitive again. The biggest mistake we can make is to give the auto industry what they (and the unions) are looking for – a blank check.  There’s no way we should do that!

Any government led bailout needs to demand real, apolitical change.  These companies need new leadership willing and able to make dramatic changes.  Close plants that are inefficient and producing cars that no one no longer wants.  Demand stringent requirements on fuel efficiency on all new vehicles.  Get rid of the unions and their uncompetitive demands.  And, yes, downsize the companies so they can operate more efficiently.

The obvious downside to all these changes is layoffs, major layoffs.  This will not be easy.  (And sadly the reason Washington may not have the guts to do the right thing.)  But if significant change is not made, we will waste a lot of taxpayer money and find ourselves dealing with this mess again – very shortly.

One final point…let’s make sure we bail out the creditors of the automakers and not the equity holders.  It would be a crime if our bailout funds helped get the Ford family and the big shots at Cerberus out of the mess they got themselves (and all of us) in to.

Election Chip Shots

Posted on October 2nd, 2008 in Uncategorized by Karl

1) Tonight’s VP debate has to be the most anticipated VP debate in history.  I actually think Palin won’t come across as a complete moron.  She might do OK.  I am worried about Biden.  He might shoot himself in the foot several times tonight.  The man is smart and impressive, but he can’t shut up.

2) McCain is losing steam.  There’s no way he can effectively market himself as the “anti-Bush”.  Obama’s “we can’t afford four more years” message is being heard.  Look for Obama to pull away.  Look for McCain to get nasty as it becomes evident that he is losing in the polls.  Obama will win handily.  Nice try McCain.

3) And to all you Republicans out there:  don’t be too depressed when Obama wins.  The best part of an Obama/Biden campaign is that at least Hillary won’t be able to for president in 2012.  And let’s face it…by 2016 she’ll be too old to run.

Reaction to last Friday’s First Presidential Debate

Posted on September 30th, 2008 in Uncategorized by Karl

A few thoughts come to mind.  “Boring.”  “A waste of time”.  “Politicians doing what they do best.”

I admire both McCain and Obama as men with great integrity. I thought both were “different” than your typical politician.  However, last night they sure sounded like your run-of-the-mill politicians.

In a critique of the debate on NPR a political expert was quoted as saying: “Both candidates both did great.  Neither one really screwed up.”  Since when is “not screwing up” equivalent to doing a good job and serving the American interests?  I guess that’s politics for you.

Reaction to the Failure of Congressional Approval for the Bailout

Posted on September 30th, 2008 in Uncategorized by Karl

US citizens should wake up and realize how fragile our economy is right now. This bail out is much bigger than just supporting the “fat cats”. If we let the banking system freeze up, we will all feel the grip of a global Depression. We will become Japan or revert back to the US in 1929 all over again.So much for “country first”. “Politics first and country second” is more like it. However, it also shows that Bush’s plea to get this done was meaningless. Bush isn’t a “lame duck” president. He’s a “dead duck” president.Finally, what does all this mean for November 4th ? I think this fiasco just handed Obama-Biden the White House. The country is so disgusted with the Bush Administration that McCain cannot and will not be able to adequately distance himself from his party. McCain, you are guilty by association. Try as you might, you can’t erase that “R” from your forehead.  You will lose the election. And by the way…Obama, you are screwed. After winning the White House you are inheriting a bankrupt, ‘recessioned’ country that has serious domestic and international problems which have no quick fix.

47 Days to Go

Posted on September 18th, 2008 in Uncategorized by Karl


With 47 days left to go until the election, let me state three obvious points:

1)      A lot can happen in 47 days.  It feels like the “quiet before the storm” and it really hasn’t gotten ugly yet.  We all know it’s going to get ugly real fast.

 

2)       What issue is going to be first and foremost on the minds of Americans come November 4th?  If it’s the economy, Obama wins.  If it’s national security, McCain wins.  If the election took place today, the economy is first and foremost on everyone’s mind so I would give the nod to Obama.  I don’t think McCain gives a credible argument that he’s the change engine the country needs.  If in the next 47 days, the US encounters a credible terrorist threat that rattles us, McCain will win.

 

3)      The Palin story is getting old.  Nominating Palin as VP was a genius strategy by the GOP.  Just think.  For 30 days, no one has discussed any real issues.  They (we) have been distracted by all this Palin gossip.  That was a good thing for McCain as he allowed him to stay neck and neck with Obama.

Life in Iraq

Posted on September 4th, 2008 in Uncategorized by Karl


Why aren’t he Iraqis thrilled with the US occupation?  Well, here’s one reason.  Their quality of life has gotten WORSE since Saddam was overthrown.  The typical Iraqi only gets two hours of electricity a day.  In this mecca for oil, there is a huge shortage of fuel.  Iraqis wait in lines for over three hours to fill up their gas tanks.  Kerosene for cooking is rationed and there are huge lines for that too.

 

In America, we are ripped when we have to pay $4 per gallon for gas.  Imagine the bitterness the Iraqis have towards us.   No wonder they hate us.

Election Update

Posted on September 4th, 2008 in Uncategorized by Karl


The best line I’ve heard is:

“This election is about a candidate who should have been elected eight years ago and one that should be elected eight years from now.”

 

Chip shots from the GOP Convention (days 1-3):

1)      Rudy Guilliani is a fool.  Talk about an awful speech.  Rudy:  go back to the private sector and run your consulting firm / investment bank and make millions.  But please, don’t even think about going into national politics again.  You come across as a dope.

2)      Mitt:  You are toast too.  For such a smart guy, what’s with your speech full of bitter one liners?  Your attacks on Obama, make you seem catty and fake.  You gave it your best shot this year as a candidate.  McCain smartly decided you were too much of a risk as a VP candidate.  Now move back to Bain Capital and ring the cash register (again).

3)      Palin:  You surprised everyone last night.  Up until your speech, the convention had been a complete waste of time (and painful to watch).  Given the first impression you made on America last night, I think McCain’s gamble might work.  You have solidified support from the conservative right, and you might just mobilize woman to get up and vote for the GOP ticket.  All that “hockey mom” talk might just get the suburban mom’s to warm up to you.

 

Let’s face it, the only chance the GOP ticket has is to keep emphasizing McCain’s war hero status and his POW experience.

Pickens Plan

Posted on August 6th, 2008 in Uncategorized by Karl

Everyone should take a minute and look at www.pickensplan.com.

 

Pickens’ message is simple and bold.  His plan is more of a “wake up call” to Americans with the message: the US needs to invest and develop alternative energy options to lessen our dependence on foreign oil.  Given Pickens’ personal investments, he is pushing for wind and natural gas.

However, the genius of Pickens’ Plan is that he is not beating the tired “save the environment” message so many other have tried to use (and failed) to mobilize America to seek energy alternatives.  Let’s face it - (sadly) Americans don’t care that much about the environment.  Pickens’ Plan is attracting attention because he is saying: “America, this is a huge national security issue!  Do we really want to be that dependent on the Middle East and Venezuela?!”  His transfer of wealth argument is:  why send $700bn annually to the Middle East when we should be investing those dollars in domestic energy alternatives?

It is not Pickens’ job to be the architect of our country’s energy policy going forward.  Over the last twenty years, Washington has done nothing.  At least Pickens is bold enough to lay out the beginning of something constructive and wealthy enough to mobilize it on his own.

China blocks gold medalist Joey Cheek from attending games

Posted on August 6th, 2008 in Uncategorized by Karl

A great man and athlete won’t be attending the China Olympics.  China won’t let him attend. 

While Joey Cheek won a gold medal for speedskating in Torino in the Winter Olympics of 2006, he is best known as the founder of Team Darfur – a group of 70 athletes whose goal is to raise global awareness of the human rights violations taking part in the Darfur region of Sudan.  (After winning the gold, he donated his $25,000 USOC bonus check to Darfur and implored his sponsors to do the same.)

Cheek was honest.  He announced that he was traveling to China to support Team Darfur.  That didn’t fly with the Chinese government, and they denied Cheek’s visa.  The Chinese are determined to do everything they can to sweep any political activism under the rug and have the world focus on athletics and China’s beautiful Olympic buildings.

It’ll be interesting to see how that works.

Kentucky Derby

Posted on May 5th, 2008 in Uncategorized by Karl

Each year I follow the Kentucky Derby hoping that one of the underdogs will beat out the favorites.  I love a Cinderella story.  However, in today’s Wall Street Journal I read a sad statement that made me think that horse racing isn’t about the best jockey or best trainer.  It’s all about the best blood lines and which millionaire will pay the most for the best bred horse.

According to today’s WSJ, “14 of the last Derby winners (including this year’s winner: Big Brown) are descendants of Native Dancer…a champion horse from the 1950’s whose bloodlines are prized by breeders for producing precociously fast hoses that excel at the Derby.”

So it seems that anyone can win the Derby.  All you have to do is buy a horse that is a descendant of Native Dancer.  Let’s hope the KY sperm bank that houses Native Dancer’s “goods” has enough supply on hand for the next twenty millionaires who want to win the Derby!