Tuesday, July 1, 2014

GM and Shareholder Value

GM screwed the quality pooch for years.  How many millions of cars have been recalled this year?  For years and years, GM management, upon being notified that little things such as ignition switches might fail and kill people, nodded and did nothing.  Why did they do nothing?

Were all those administrative sycophants evil followers of a CEO hell bent on killing customers?  Nah, not at all.  It's much simpler.  They were sycophants alright, but they were following other masters.  I have a feeling that mangers and in GM and other companies which have increasingly produced crap have done so because of Wall Street's analyst's obsession with shareholder value.

If you buy into the bullshit that shareholders own the company and it's thus the duty of managers to make the current share price as high as possible today, then as mangers you will cut every corner you can to cut costs and appear to be worth more that you are and goose up share price.

GM should have gone Chapter 7 in 2008.


Did you enjoy Vietnam?

If you did, you may be able to revisit all those warm and fuzzy feelings elicited by needless war.  No, we're not reviving that mess.  We have a new old one in Iraq to motivate rattling of sabers by our octogenarian hawks.

We left the Iraqi needless war.  The Iraqis wanted us out, period.  They've run their own show and now have a bit of a problem.  Since we left,  the Shia have done to the Sunnis what the Sunnis formerly did to the Shia.  Now the Sunnis have proceeded to returned a ISIS tit for the Shia tats.  The Kurds of course despise both groups and show their feelings by taking over a few cities for themselves in their domain.  The "government"  needs some help and we seem hell bent on returning troops.

Didn't dear old Nam begin with a few here, a few more there and before long we had 600,000 troops in that needless waste?  Obama has sent in a few more.  What will happen when the first one dies?

Obama authorizes 200 more troops for Iraq

There really isn't an Iraq.  It is the outgrowth of Europeans carving up the desert after WWI and saying "voila, let their be nations!"  The "nation" contained folks who'd been and still are killing each other over religion since Mohammad died in the seventh century.

Can they make it work?  Nah, they can't do much together at all--Iraq’s parliament fails to agree on formation of new government. What should we do?

Well, let's begin by getting all Americans out of that shithole, blow up the embassy, and let the Iraqis have at each other until their kill their way to a stable group of new states.  I can see what Biden proposed emerging from the blood bath--Shia, Sunni and Kurd.  Of course that assumes they can agree on a way to split the oil revenue.