On Fri, 5 Dec 2008 22:22:46 -0800, "John R. Carroll"
wrote:

It's time to move forward to Capitalism 2.0.
V1 is as dead as a door nail.

JC
-----------
That's why the last of the email is so important.

"It is also critical that a "Board of Inquiry" be established to
determine how, and by whom, the domestic automotive industry was
driven into the ground, so that legislation and regulation can be
implemented to prevent any reoccurrence in this and/or other
industrial/economic sectors, with criminal referrals as may be
appropriate. "

Also the need to eliminate trying to nail "jelly to the tree" is
critical:
"Assuming that the audit/verification is favorable, and
additional funding is warranted, it will be critical to eliminate
the "weasel words" from the "rescue/restructuring plans" and
establish firm, measurable goals, objectives, and mileposts, with
funds released only as these goals, objectives, mileposts, etc.
are met."

While the Reagan vision was appeling, and may have been optimal
for a simpler time [much earlier than his administration] it is
clear [to me at least] that with the proliferation of
transnational private organizations rivaling many countries in
wealth and influence, and the introduction/proliferation of novel
financial instruments such as CDOs and derivatives, ==an
entirely new socio-economic environment has been created== and
the old platitudes, shibboleths, rules-of-thumb, etc. are no
longer operational, and indeed these may well be
counter-productive on a macro basis.

As I indicated he
"It is critical that the actual financial condition of the
automotive companies be established and the
feasibility/plausibility of their projections and assumptions be
evaluated using GAAS/FASB accounting standards and accepted
forecasting techniques, during this 30 to 90 day "grace period,"
purchased at great taxpayer expense. This verified data could
then be used for a data driven decision on a company-by-company
basis in a calmer and less emergency/crisis environment. A joint
taskforce composed of qualified and senior personnel from the
GAO, IRS, SEC, and outside specialists as required, is
suggested."

The actual financial condition of the Detroit big three is highly
questionable, particularly when their "off the books" obligations
and ties to other companies are considered, and what they
submitted is more than likely the absolute best possible
case/spin, but until a full audit/review is done by the
GAO/IRS/SEC etc, we won't know for sure.

Even if (as seems likely for GM) these are zombie [or more
precisely vampire] corporations, it is still better to verify
this, put *SOME* money in, and wind up their operations in an
orderly/structured manner than have a Lehman style "black hole
implosion" over a weekend. [My guess would be during the
Xmas/New Year holiday week w/o some governmental funding].

My special concern is that *ALL* the major corporations are
facades and stage sets, and that the Detroit three, far from
being unique, are simply the first. This is particularly true
where there was any significant involvement with the "new
finance."


Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?

Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).