The MO could be a $70B CO if the FED MIN was increased to $10.10 because people at this scale would be able to afford a used car and spur replacement orders for product up the price curve. This will help lift unit volume to the projected 20 M level sooner rather than later. No one expects to buy a house or new car at this level but there are throngs of working adults stuck at this wage level for one reason or another. The BIZ community will probably resist this idea therefore it must be enacted through legislation. Now is the time: the economy can absorb it and many people up the financial food chain stand to benefit through economies of scale: the shareholders, the suppliers, the employees and the pensioners. Short sighted people who tend to minimize employee wages and salary like fuel expense will lose out on the morale side of things in the long run at the very least. You get what you pay for. $10.10 is coming.
What a joke...a "real estate novelist who never had time for a wife " ? A conduit for dirty money and a guy who let's of one of his subsidiaries goes broke running a casino ? A reality TV show "entrepreneur" who has the personality characteristics of Leona Helmsley. A caricature of " Richie Rich " who is a legend in his own mind. Not all that glitters is gold my friend. Nothing wrong with making it big in business or real estate but he appears out of his league. Even Jerry Springer can produce low brow TV shows and make a mockery out of buffoons screwing the pool guy but at least he had the gumption to be mayor of Cleveland for a while. Trump has never held elected office and is probably just mad at the IRS for making him pay taxes and now plotting to try and take over city hall because he can't fight them.
Wages will rise to $10.10, not fall, when voters elect Hillary to the new helm in D.C. and the industry generals see the benefit of raising the income of the bottom quintile because it will catalise new car sales by way of spurring demand for used cars at the low end of the market. This will cascade through the market and cause replacement orders at the top end and help lift the market to the projected 20 million unit mark sooner rather than later. The economy is robust enough to absorb a hike in the MIN wage and the supply base is profitable enough to handle a little less profitability and can make up for it with increased unit volume and economies of scale. Union membership is always an uphill effort but will have pockets of traction and might be accommodated by favorable GOVT policy actions and a wiser workforce, but don't bet on it. Unfortunately the folks at glass house are gonna have to use the old "network" of purchasing MGT "friends" to glean favors and put pressure on all the supply chain cheapos if they already haven't held them captive to cost plus pricing contracts. The best thing the UAW can do is try to gain members with additional OEM jobs. The movement is getting harder to sustain as technology and foreign labor markets displace US MFG jobs. Look for pressure from DC. to rebalance some of the ridiculous currency advantages held by Japan, Mexico and China.
High GOVT debt you say ? How much did Bush 43 incur to finance the invasion of Iraq ? How much did the current administration have to borrow and enact fiscal stimulus to avoid a 1930's era depression, spurred by careless gonzo capitalism policy under W. ? What is the percentage of GOVT debt compared to GDP and how does it compare to the past ? What is the trend of FED GOVT budget surplus / deficit ? I'll chew you up and spit you out like a piece of Big Red gum Clymer.
You should stay off topics you are not knowledgeable about. Corporate interest rates are a function mainly of default risk not interest rate risk and are simply priced at a premium to the treasury notes and bonds, currently at less than 2% for a 10 year treasury bond. This is very low and any monkey with a little cash flow and a bank account can borrow at 5% and buy bonds that pay 7.5% and enjoy the spread in their pocket. The cost of debt is very low and is also tax deductible so your argument flies in the face of reason. Aside, the $15 MIN wage is a stretch and the O. ADMIN is pitching a $10.10 level, so you and your Wall Street buddies will have to eat crow when the revolt at the ballot box happens and it's made law.
You will go down to the bottom of the sea and pay for your transgressions against people if you are culpable, whether you want to believe it or not. Say good bye to everything you hold dear and prepare to suffer in treble all the pain you have caused others, by your own hand or under your direction. The only thing the GOP has going for it is the religious right and you can have the lot of them save Carson & Huckabee. Go hump your crystal ball, maybe it can make you aware of who doesn't like you so that you may start a beef with them at the local tavern.
Bush 43 succeeded in crashing the economy so apparently the GOP is better at manipulating the economy and marginalizing people than Barry. Once people understand what is really going on they will revolt against the corporations or the CORPS will relent and make do with less like the rest of us who won't play their game. The devil is at work and he is easy to find: just follow the money.
In a laughable article on economics by a Forbes writer he pens that " up front, this column is not a defense of President Obama or his economy. His administration’s meddling during what would have been a healthy recession deprived the economy of its natural ability to fix itself on the way to a boom. ", suggesting that the Bush - Cheney Admin. policies that resulted in a once every 50 year recession was "healthy". No doubt Steve's duds on staff are wearing GOP tinted lenses but this goes too far. I guess he panders to uber-right wing capitalists that see no need for pollution controls, a MIN wage or unions just to name a few and bolsters his subscriber base publishing such nonsense, but rebutting him is like lecturing a selfish five year old. Like $150/ BBL oil, $5 / GAL gas and a 50 % stock market contraction, not to mention a real estate market implosion along with 10% unemployment and 10 million unit car market are constructive forces to purge economic froth and waste ? Steve's (probable) belief in a economic meritocracy of sorts is questionable when he approves journalism of this sort, which borders on tabloid nonsense.
John Boehner could be a great American Statesman who is now more sensible than not. Plus he seems like a guy who has a heart.
The MGT, shareholders, union and OEM lobbyists should be pushing hard for an increase in the FED MIN wage to $10.10 an hour just like the O. ADMIN proposes. This extra income could be absorbed by the current supply base among other industries and will result in used car prices stepping up a bit and replacement orders to supplement OEM sales. This economic catalyst will aid new unit sales and hopefully reach the 20 million unit mark sooner rather than later, further cushioning margins and profits down the line through economies of scale. Or do nothing and just work the cost / price equation and watch the working poor stew and be left out of the picture. Start to think OUT side the box an do something for moral dangit !!
Good luck with fighting the trend, the Forbes Army should know better then to fight the tape. Time to derail his publication and relegate it to the scrap heap of newsletter crud. Steve's demonization of the union and wage equity will seep into his literature and undermine his subscriber base because it reeks of bad advice.
Looks like one of Steve Forbes pen men has a beef with the CO and is writing scathing gibberish about losing revenue to the tune of 50%. Who ticked this guy off ? This is just a bias smear piece and smacks of ulterior motives. So funny, Steve the right - winger is so incensed by the union that he green lights work like this. Nice thing about it is there is no need to rebut it because it's absurd. 20 million units within five years according to Dopplebinger Group.
You need to " stay clean " so you can perform constantly for the CO and not offend any of the psychic Satanists with an abberant thought about how much you loathe their secret society after they use the occult to annoy and harass the heck out of you for years and years. This is psychological warfare. Beware of officer Clairvoyant staking you out with his patrol car when you roll down the street. He might call you out for missing the toilet when you pass a stool next time. Be nice to Tony though, you have to appease some one and it might as well be him.
The company was sued and the settlement has been finalized and approved by the court. I haven't seen a penny yet and even if I do we are talking about a 1% recovery on the total investment. If there was any criminal wrong doing it would have been pressed by the DA's. I still can't believe the GOVT let's these sham Chinese CORPS to list stock on US exchanges. This company is one of many Chinese COS that have just plain ripped off unsuspecting investors. This whole thing was a scam from the start apparently and I fault myself for not looking a little closer at it. Last time I ever buy into a Chinese company.
I worked at one of the plants in Metro Detroit years ago and one day the DEPT Superintendent brought me an opened letter addressed to me that was sent from my brokerage account. The letter contained a trading confirmation from a trade I had made earlier in the week. I called the firm and asked why the confirmation was sent to my place of employment and they said it was a " mistake ". Funny how they made a mistake when the earlier activity on the account was sent to the proper address at my home. Years later after the account was wound down one of the level one MGT personnel said " you were making money for a while ". I want to know what gives you people in these CORPS the right to spy on people and concern your selves with their personal business? Just because they are in labor union ? You people in that triple 6 club within these CORPS got a big set of cahunas and are nothing but NOSEY JERKS.
You're correct, but I was wrong about the class action part. I did file a complaint with the State Dept. of Consumer Protection Division though. Not that I'm a stickler but when different lots of the same bulb fail at 100 hours systematically instead of 985 hours, which they are rated at it's time to say something. This could be an intentional gouge to bolster the company treasury coffer and amounts to a staggering amount en masse.
I have been purchasing GE brand 60W light bulbs at Meijer stores in Michigan for the past year or two and have noticed after using at least a dozen of them that the rating on the packaging as far as useful life goes is not accurate. The box says the bulb is supposed to last at least .9 year based on usage of 3 hours a day and I have noticed they fail a lot sooner and on a consistent basis. These bulbs are supposed to last at least 987 hours at the minimum and they are failing after 100 hours or less. I understand that defects happen occasionally but this premature fail problem has happened over the course of several purchases and I suspect the problem is designed in or a gross MGT oversight. This amounts to a rip off of consumers because they have to replace bulbs more often than otherwise. I find it hard that a company worth over $250 B on the stock market can't identify the proper service period of their bulbs or make them last like they should. This is another example of CORPS ripping people off by what ever means are available to them. Maybe a class action lawyer can pay to commission test and validate this claim. You people In those suits who work in CORPS think most of the society is stupid don't you ? Far as I'm concerned you people in the top 20% of the income curve can pay more in taxes and take a pay cut like the rest of us. What a bunch of SHAMAN.
Use some of the cash to get that bond debt off the balance sheet. Ford has a much higher leverage ratio than the General, primarily because generous motors cleared it out when they filed BK in 2009. These auto stocks used to trade at P/E multiples between 8-12 but for some reason track closer to an 8 in the last 10 years. The UAW and the CO MGT needs to suck this paper up but I'd keep it at about 12.5 % of portfolio value to preserve a cushion in light of another Bush / Cheney / GOP induced recession similar to the last one.
Some advice to hourly people on some of those level one & level two MGT people: they have an agenda. One of them used to visit the local bar near the plant once in a while to mingle with the workforce. One night on NYE it seemed like he was taking notes on how much people drank. I think he ran back to upper MGT and tried to smear people he didn't like or to get them pegged as future "problems". They are nice as long as the company and your plant is in the black but when those numbers start coming in red they can get real nasty. They are experts at waging psychological war on people. Keep your cards close to your vest and don't confide in ANYONE at the plant, union or salary. Most of them will use it against you eventually.