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They say that a picture is worth a thousand words. Well if that's the case Just please feast your eyes on a Rembrandt . This thing must be worth a million GM shares.

Now, I appreciate good jokes and love to watch old stand up concert movies of guys like Richard Pryor, Eddie Murphy and George Carlin. It wasn't until I looked at the above mentioned mess, however, that I squirted coffee through my nostrils for the first time.

There is an uneasy feeling you get when looking at something that caused so much misery...knowing you just laughed your guts out about it. That having been said, we've redefined insanity...so why apologize for acting crazy?

Whether you choose to blame those that created this structure or those who entered into it, the point is really moot. The mortgage crisis has not be resolved by one single iota and still stands. Insolvent, stupid and deadly as it was two, four and six years ago.

The only real difference is that today it is business as usual. Two years ago we were shocked. Four years ago we were in denial. Six years ago we absolutely loved it.

Yesterday, a cancer ridden former beauty queen on her death bed was once again wheeled out before the judges. Not two years after dying on stage at her last pageant. Equipped with a new body and the same rancid organs. They gave her high marks. They told us she was beautiful. They pillaged her and us all.

She opened at 33, rose to 35 and closed around 34.

We really will never ever learn from a damn thing.

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Comments (18)

  • TNA's picture

    Good post. Americans and the financial community have incredibly short memories. Rename something, slap a new sheen on it and people will buy it.

  • monkeymark's picture

    Haven't had a chance to look at the "new" GM yet, and not really that interested to be honest.

    You don't think it has a fighting chance this time round after having trimmed some fat?

  • Frieds's picture

    Re: GM, Nothing at all.

    Midas, I have no clue what the hell I was reading the flow chart was too damned confusing. It's convoluted, confusing and pretty much ass backwards in my rather humble opinion.

    Sad to say, but we've learned nothing from the matter, as the issue still has not been resolved, just swept under the rug for the time being until an even worse fallout happens.

  • In reply to Frieds
    Midas Mulligan Magoo's picture

    Frieds:
    Re: GM, Nothing at all.

    Midas, I have no clue what the hell I was reading the flow chart was too damned confusing. It's convoluted, confusing and pretty much ass backwards in my rather humble opinion.

    Sad to say, but we've learned nothing from the matter, as the issue still has not been resolved, just swept under the rug for the time being until an even worse fallout happens.

    Frieds,

    If you can't figure it out. God help us all. I prefer not to quote Greek Socialistas but here's the original story and how the hamster wheel came to be.

  • monkeymark's picture

    Midas,

    I recall them getting rid of a couple of brands (Pontiac comes to mind) and also cutting down on models offered, so that should (hopefully) lead to more stream lined operations. Also, some of the other auto makers have taken a beating reputation wise. I'm just speculating here, really haven't looked into it at all.

    I generally agree with your post, society has a hard time learning/applying lessons, or forgets them sooner or later.

  • loki276's picture

    That makes no sense whatsoever but that I guess that was the whole point of it

  • Frieds's picture

    Monkey, while that helps, the company is still owned, in large portion, by the Pension and Union, which adds to the costs inherrent in their car building. While I am not necessarily against Unions when they actually help people, and yes, there are a few that do in the private sector - the UAW is not one of them, one of the biggest problems is that union ownership does not reduce the overall labor costs paid out on a per car basis.

    That is, without a doubt, one of the most expensive parts of the US automotive industry. Union Labor and benefits destroys any productive benefit that GM may have even though their sales are up. The UAW, given it's newfound power, doesn't need to see profits as long as their workers are protected, and because the union and pension are now owners, they can allow for the union to get the benefits it wants.

    Midas,

    I can figure it out, but I don't understand it. There is too much "WTF" in a chart this complex and not enough simplicity, but that's why we are in this problem in the first place. If you read the ZH piece (linked to here), you'll note that the guy who made this flowchart does forsenic analysis on securitization, and it took him over a year to create this. That's pretty absurd if it took a guy who'se job it is that long to figure this out for his own mortgage. How bad do you think it is for others?

  • LetsGoSailing's picture

    I choose what I watch from 300 cable channels, set the air conditioning to whatever temperature I want, and purchase the beer of my choice... I'm too busy to worry about all the other random decisions that might effect me...someone will take care of that for me, right?

    A good friend will come and bail you out of jail...but a true friend will be sitting next to you saying, "Damn...that was fun!"

  • Slacker23's picture

    My favorite part of that chart is on the right side... the black hole where promissory notes and deeds go

  • TNA's picture

    Here is the big problem with GM. They were saved to keep the unions from being out of work. Now that they are back, smaller and leaner, the original problem still exists. High union costs, high pension costs and leaner and meaner competition.

    The Volt is cool, but still too expensive and will not be able to really impact the bottom line. The car lives or dies on the government tax credit which, as far as I am concerned, is low hanging fruit when it comes to balancing the budget.

    The question everyone should be asking is this. How does GM compete? They can't win on price (margins are squeezed as it is). I don't think they can win on style (this is subjective so grain of salt). They have higher labor costs than their competitors. Honda, Toyota, Nissan, et al , all have a more fuel efficient fleet with higher quality and lower labor costs.

    Where is GM going to fit in? The company will limp along, but needs to keep slimming down. Saving GM in the state that it was in was a political move, not an efficient, market driven event. GM needs to move from a defined benefit to a defined contribution. They needs to lay off more workers. Reduce suppliers and streamline operations.

    It will happen, but it hasn't happened yet.

    Short GM.

  • Midas Mulligan Magoo's picture

    @ Frieds & @ Anthony,

    Surprised that neither of you guys (each for his own reasons:)) has yet to mention Joe Biden.

    If there ever was a greater whore for the UAW I sure didn't across her. Reading this guy's voting record is like reading that Duke girl's prostitution project, except her clientele was limited to lacrosse players and his to union delegates.

    If one delves "beneath the hood" (so-to-speak) of the GM multi billion dollar heist, it is not a far fetched notion to say that the UAW bought themselves a seat in the White House. Though corporate welfare and corruption is nothing new it CERTAINLY IS NEW in regards to companies that MAKE NO MONEY.

    GM not only hasn't turned a profit in a decade it has been a dead man walking in more ways than one for over 30 years.

    I suggest you fellas check out a movie called "Tucker: A Man and His Dream" starring Jeff Bridges and directed by Francis Ford Coppolla I think you would both enjoy.

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    If I had asked people what they wanted, they would have said faster horses - Henry Ford

  • happypantsmcgee's picture

    If I had asked people what they wanted, they would have said faster horses - Henry Ford