Lary – Page 134 – www.exkalibur.com

Six Degrees of Separation . . . may mean failure!

Lately, I’ve become increasingly skeptical that the steps being taken in Washington are close enough to the source of our economic problems to be successful. A recent New York Times article reflects on the new consumer aid program, for example. The TALF program (Term Asset-Backed Securities Loan Facility) will lend $200 million to private investors who will buy securities backed by auto loans, credit cards, etc.
In theory, this will keep credit flowing freely from lenders to borrowers but I’m dubious of this trickle-down expectation. If Keynes is right that the locus of economic turbulence is insufficient demand, there are just too many places “twixt the cup and the lip” for these incentives to go awry and for the stimulating effect to dissipate.
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The Auto Industry: Just the Facts, Ma’am

Yes, I realize we don't cover the auto industry here . . . but I believe that whether and/or how we rescue the American auto industry will be a harbinger of what's coming in 2009. There's no lack of material about this but you should consider this Wall Street Journal…

No Surprise Here . . . cost cutting spreads

Business Week recently wrote about the cost reduction process that's cutting across America's companies. If "misery loves company", there's plenty to go around. Remember, though, that's it's only a short-term strategy and that there is a silver lining - you'll be positioned for faster, more profitable growth when the economy…

Happy Thanksgiving!

During this period of economic challenge, a family holiday is a wonderful occasion on which to remember all of the things for which we are thankful . . . our family, friends and health for starters . . . and other blessings of warm smiles, a baby's laugh, a delicious…

You gotta love the Heart Attack Grill!

Dubbed the only honest restaurant in America - where the slogan is "the food is so good, you'll die", this restaurant is a testament to all that's great . . . and much that's terrible . . . about our love affair with food. The Quadruple Bypass Burger and Flatline…

Save GM . . . or Sayonara?

I must admit I feel strongly about both alternatives. My capitalistic tendencies - and virtually all of my business colleagues - say "let 'em die". There certainly is a lot of blame to spread around, none more poignant than the studies that have been done about the enormity of the…

New Financing Here? Not here? Here?

Isn't it fun to watch our regulators talk about the availability of business lending? CFO magazine may not have observed that their recent article, TARP Won't Spread Loans for Months, Chief Suggests, has no good news about the several additional months before some of this credit becomes available. In the…

Look to customers for financing?

There are times when looking to customers for financing might be a valuable tool. This concept goes beyond getting extended terms from suppliers, although that is an excellent form of interim financing. A recent Business Week article outlines this concept about approaching a customer for private placement financing. I've recommended…

Put the toe-tag on TARP

I think I'm about done with the TARP program. Sure, I'll probably change my mind next week when another course correction occurs. In the meantime, reflecting on some of Secretary Paulson's recent moves, it's clear he's not sure what to do. This week, he definitively announced that the TARP program…