I have spoken frequently about making the tough decisions when they're presented and the painful process of the "death by a thousand cuts". Another perspective on making the tough decisions is how easily we fool ourselves into accepting as gospel that which we suspect isn't. It goes back to that…
Now, if this was a Knight of the Round Table, bearing the sword of Exkalibur, that would be one thing. Alas, not.
Rather, it’s an insidious invader disguised as a heroic force, riding to the rescue of American companies facing catastrophic economic ruin. So, as I watched portions of the Congressional hearings this week featuring the CEOs of America’s automakers, I couldn’t help but think: Where did the congressmen and senators learn about the auto industry?
How are they qualified to assess the business plans of the three U.S. automakers? (more…)
There's been an endless series of speeches and self-serving righteousness about executive compensation on Wall St., the value of golden parachutes and the egregious exit pay of chief executives.There's no doubt that there have been - and will be - excesses in executive compensation. This is also a "hot button"…
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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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…
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…
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…
A recent article confirmed bleak news about small business lending, reporting that SBA loans were down 68% in October over October, 2007, a discouraging sign. At the same time, the SBA is making rule changes that may loosen the reins and provide greater liquidity over time. The acting SBA commissioner…
Those of you who get a chill up your spine when CEO compensation gets scalded, should light up at the news that 175 of top American CEO's lost over $50 billion as a result of the recent stock market decline. Advocates like me who promote pay for performance are also…